Cemex reported second-quarter profit up, driven by sales increases in the US and Mexico, to beat analysts’ estimates.
Earnings before interest, taxes, depreciation and amortization climbed 6% to $771m, Cemex said in a statement today.
Cemex’s performance was boosted from greater volumes and higher prices for cement in the US – its biggest market –and in Mexico.
The company continued to lower its debt after an initial public offering of its Philippines unit in June. Net income climbed 81% to $205m.
“Our solid second quarter and first half 2016 results demonstrate the resilience of our portfolio, which is largely comprised of high-growth markets that are experiencing attractive supply-demand conditions,” said Fernando Gonzalez, chief executive, Cemex.
Sales dropped about 1% to $3.68b. Sales in the second quarter in South America, Central America and the Caribbean fell 10%; European sales were down 2% ; sales in Asia, the Middle East and Africa dropped by 4%.
Cemex lowered its total debt plus perpetual notes to $14.8bn. Its free cash flow for the quarter was $422m, the highest in a second quarter since 2006.