Cemex reports third quarter loss
By Helen Wright31 October 2011
Cement producer Cemex recorded a net third quarter loss of US$ 823 million, compared to a loss of US$ 86 million in the third quarter of 2010, after foreign exchange and financial instrument losses impacted its business.
Net exchange losses for the quarter were US$ 217 million, resulting mainly from the depreciation of the Euro and Mexican Peso against the US Dollar, according to the company. A further loss of US$ 339 million was recorded on equity derivatives on Cemex shares.
Nevertheless, the company reported a +7% year-on-year increase in third quarter operating income to US$ 305 million after sales of for the quarter increased +5% to US$ 3.9 billion.
The operating result was boosted by higher sales in the company's Northern European, Caribbean, Southern and Central American and US operations. Cemex said infrastructure and residential sectors were the main drivers of demand in most of its markets.
Offsetting this, Cemex's sales in its domestic Mexican market fell -1% year-on-year to US$ 856 million, while Spain led a -5% fall in the company's sales in the Mediterranean region to US$ 424 million.
For the full year, Cemex said it expected cement sales to grow +1%, while ready-mixed volumes are forecast to increase by +4% and aggregates by 1%.
But the company also said it expected the cost of energy, on a per-tonne-of-cement-produced basis, to have increased by about +15% for full-year 2011.