Cemex profit down in Q2

Cemex Holdings Philippines Inc. (CHP), the listed Philippine subsidiary of the Mexican cement giant, reported a 69 percent decline in its second quarter earnings to P137 million.

This brought first half income to P486 million, down 46 percent from the same period a year ago.

CHP said the decrease in net income was due to lower prices and volumes as well as higher operating expenses.

Lower prices stemmed from heightened competitive conditions and the continuing presence of imports in the markets.

“Additionally, a lower-than-expected shutdown of the Apo plant in Cebu during the quarter temporarily affected cement output,” CHP said.

Newly elected CHP president Ignacio Mijares, however, is confident the company’s financial performance would be better in the second half.

“I am confident that the company’s resilience and proven operational excellence, demonstrated throughout the years, will allow us to strengthen our current position. Together with the Philippine government’s positive outlook for construction activity, we remain optimistic for the second half of 2017,” he said.

The company was able to reduce financial expenses by 34 percent as a result of the refinancing of CHP’s dollar-denominated loan with local debt.

Other financial expenses, mostly foreign exchange losses, also declined 57 percent.

CHP, which embarked on an initial public offering last year, produces and markets cement and cement products, such as ready-mix concrete and clinker, in the Philippines through direct sales using its extensive marine and land distribution network. Its cement brands are Apo, Island and Rizal.

It is an indirect subsidiary of CEMEX S.A.B. de C.V., one of the largest cement companies in the world based on annual installed cement production capacity.