(Monterrey, Mexico) — Mexican buildings supplies giant Cemex SAB said Tuesday that it turned a $265 million profit in the fourth quarter, rebounding from a $743 million loss in the same period of 2008.
Cemex said the profit came on gains from foreign exchange positions and financial instruments, while it had a steep drop in operating income and revenue.
Consolidated net sales declined 17 percent in the fourth quarter to $3.4 billion and were down 28 percent for the full year to $14.5 billion
The Monterrey-based company said in a report that sales were hit by weak demand in the U.S. and Spanish construction markets, but pointed to signs of stabilization and said it had modest increases in some areas like U.S. highway building.
Cemex sales in the United States totaled $602 million in the fourth quarter, a 39 percent decrease from the same quarter of 2008. Fourth-quarter sales in Spain were down 21 percent to $194 million.
"We have been faced with the continuing global economic slowdown and a challenging business environment," Executive Vice President Hector Medina said.
He added that, with the sell-off of some Cemex assets, "we believe we are strategically aligned as a leaner and more agile company and will be able to successfully adapt to the changes in the economic environment."
The company's net debt declined by $2 billion in the fourth quarter to $15.1 billion, and Medina said Cemex would continue efforts to further reduce debt
Source: http://www.pennlive.com/newsflash/index.ssf?/base/business-57/1264567125266640.xml&storylist=business