Cemex books P70-M net loss in Q3

CEMEX Holdings Philippines Corp. incurred a net loss of P70 million in the third quarter of 2018, compared with the P202-million income it posted in the same period last year, which it blamed on higher input costs.

“Higher input- cost inflation continues to be a challenge for the company,” Cemex President and Chief Executive Officer Ignacio Mijares said in a filing on Friday.

Earnings before interest, tax, depreciation, and amortization (ebitda) declined by 8 percent to P686 million in July-to-September and by 15 percent in end-September to P2.4 billion, also because of these costs and shutdownrelated expenses.

Revenues, meanwhile, increased by 8 percent to P17.9 billion from P16.6 billion year- on- year.

To improve profitability and deliver value to customers, Ignacio said the cement manufacturer was implementing initiatives that included launching Cemex Go. This digital commerce platform lets customers place and track orders, and offers invoicing and payment services.

The filing came after its unit Solid Cement Corp. partnered with Chinese firm CBMI Construction Co. Ltd. last week to set up a cement plant in Antipolo City, Rizal province, for which the former will invest P12.7 billion.

The facility is projected to produce 1.5 million metric tons of cement annually and raise Cemex’s yearly production capacity by 26 percent. It is expected to begin commercial operations in the fourth quarter of 2020.

A subsidiary of Cemex Asian South

East Corp. that was incorporated on Sept. 17, 2015, Cemex Holdings Philippines primarily sells gray ordinary Portland cement, masonry or mortar cement,

blended cement and ready-mix concrete. It markets and sells these under the Island and Rizal brands in Luzon and the Apo brand in the Visayas and Northern Mindanao.

Cemex’s shares dipped by 5 centavos to close to P2.10 apiece, bucking the Philippine Stock Exchange index’s 1.40-percent gain on Friday.