The CEMEX cement company reported a net profit on the fourth quarter on Thursday, since price increases helped compensate for a sales drop, and also launched a savings program aimed to obtain an increase in benefits of 350 million dollars by 2027.
Cemex’s net profit in the quarter reached 48.31 million dollars, but did not reach the estimate of 91.29 million dollars from analysts surveyed by LSEG, since sales fell 5% year -on -year, to 3,810 million dollars.
The volumes of the cement and concrete manufacturer fell in almost all sectors, and Cemex cited a lower demand in their key markets, Mexico and the United States.
The volumes in Mexico fell after the mid -year elections in the country, said Cemex. In the United States, operations were affected by a series of hurricanes and an frost in Texas, which reduced the profits of their main business in about 38 million dollars, according to the company.
CEMEX was optimistic about this year’s volumes in the United States in infrastructure and manufacturing projects, while Mexico will probably continue to face adverse factors in the first semester.
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Savings program could generate profits up to 150 million pesos
In a statement that accompanies its results report, Cemex announced the launch of a cost reduction program designed to add 350 million dollars to the benefits of its main business by 2027.
The company plans to achieve it through the rationalization of operations, the improvement of efficiency and the use of digital technology, although it did not provide more details.
The program is expected to contribute 150 million dollars to this year’s profits, with new increases thereafter, while providing savings to the free cash flow line, according to the company.
As of this year, Cemex will invest in “growth through small and medium acquisitions, mainly in the United States, additional disappointment and development of its return programs to shareholders,” said executive president Fernando González.
CEMEX has abandoned a series of non -strategic businesses to focus on the US market. Last year he sold its operations in the Philippines, Guatemala and the Dominican Republic.
With Reuters information.
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