Cemex reported earnings of USD 42 million in the first half of 2020

The Mexican consortium Cemex, one of the largest cement producers in the world, posted a net profit of $ 42 million in the first quarter of 2020, down 9% more compared to 39 million in the same period of 2019.

“The net profit of the controlling interest was a profit of USD 42 million in the first quarter of 2020, compared to the profit of USD 39 million in the same quarter of 2019“The firm said Thursday in a statement.

The higher income is mainly due to lower financial expenses, a positive variation in foreign exchange fluctuations and lower income tax, the company said.

In its financial report, the company indicated that net sales in the first quarter of 2020 reached USD 3,085 million, a figure similar to the USD 3.094 million in the same period a year ago.

“The world is going through an unprecedented time due to the COVID-19 pandemic. Construction activity in most of our markets is affected to varying degrees“, acknowledged the general director of Cemex, Fernando González Olivieri, in a bulletin.

However, added the manager, the company responded “quickly to this health crisis, focusing on three priorities”: the health and safety of employees and suppliers, customer support, and measures to protect the future of the company.

Likewise, senior managers have voluntarily transferred part of their salary, and “suspending or reducing capital expenses, operating expenses, production levels and inventory” in order to improve cash.

Gross profit in these three months was USD 966 million, slightly lower than USD 972 million in the same period of 2019, which meant a 1% drop without currency adjustments, but a 3% rise in comparable terms.

EBITDA fell 2% year-on-year in real terms to settle at USD 534 million, compared to the 546 million accumulated in the same period of the previous year.

With the comparable percentage change adjusted for investments / divestments and exchange rate fluctuations, ebitda grew 1%.

Net debt plus perpetual notes stood at USD 10,756 million.

The company specified that its net sales in Mexico totaled USD 685 million in 2020, a figure 3% lower than in the same months of the previous year.

In United States, Cemex’s total revenue was USD 965 million, an increase of 13%.

Likewise, in Europe sales reached USD 651 million, 5% less than in the first quarter of a year ago.

The subsidiary in South, Central America and the Caribbean reported revenues of USD 373 million, a figure 13% lower, without adjustments, to the same period of 2019.

While in Asia, Middle East and Africa the cement company sold products for USD 352 million, which represented an advance of 2% in real terms.

Cemex posted a net profit of $ 143 million in 2019, 73% less than the $ 528 million profit of 2018, which in turn was 33% less than the 2017 earnings.

Based in the northern city of Monterrey, the cement company earned USD 750 million in 2016, multiplying the profits of the previous year by 10, and USD 75 million in 2015.

Instead, in 2014 it had a net loss of USD 507 million, 40% lower than that registered in 2013, when it totaled USD 843 million.

The company ran into difficulties following the purchase of Australia’s Rinker for $ 15.3 billion in 2007 and the start of the construction crisis in the US and Europe in 2008.

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