First publishedon www.AggBusiness.com
saw its net income rise by 32% in the second quarter of 2018.
The Mexican global building materials supply giant’s net income stood at US$382 million in Q2 2018, compared to $288 million in the same period of 2017. The company’s consolidated net sales increased by 7% during the second quarter of 2018 to $3.8 billion versus the comparable period in 2017. CEMEX operating EBITDA increased by 4% during the second quarter of 2018 to $714 million.
Fernando A. Gonzalez, chief executive officer of CEMEX, said: “We are encouraged by the very favourable volume dynamics we saw in most of our portfolio during the quarter, with improvements in pricing which should translate into higher profitability during the second half of the year. Our operations in the U.S. and Europe indicate a strong sequential growth in volumes resulting from strong demand and pent-up activity after adverse weather conditions in the first quarter, as well as improved pricing dynamics.
“In Mexico, we are pleased with the year-over-year, double-digit growth in ready-mix and aggregates volumes and high-single-digit increase in prices. In addition, in our Asia, Middle East and Africa region, we saw a high-single-digit growth in cement volumes in the Philippines and Egypt with favourable sequential pricing dynamics.”
Gonzalez yesterday also launched ‘A Stronger CEMEX’ – a plan aimed at accelerating the company’s path to investment grade and delivering increased shareholder value.
He said: “During the next 2.5 years, we will work to optimise our portfolio by focusing on markets with the greatest long-term growth potential and selling between US$1.5 and 2 billion of assets. We will also implement actions to achieve US$150 million in cost savings as an opportunity to continue improving our profitability. Furthermore, we will reduce our total debt by US$3.5 billion by the end of 2020, and we will return capital to our shareholders through an annual cash dividend starting with US$150 million in 2019.”