Continued growth for Cemex
By Steve Skinner24 July 2008
Cemex’s results show a +29% net sales increase to US$ 6.3 billion in the second quarter of 2008 compared to the US$ 4.9 billion figure of the same period last year. Operating income increased by +12% as the company’s higher sales were attributed to the integration of Rinker as well as better supply-demand dynamics in most markets.
Hector Medina, executive vice president of planning and finance at Cemex said, “We achieved significant increases in net sales, even in the face of the continued downturn in the US residential sector and the downturn in the Spanish economy. Our consolidated results show the strength of our business, characterised by our international presence and diverse asset portfolio.”
In Spain Cemex saw an -8% drop in sales against the same period in 2007 to US$481 million, but all other regions fared better with the rest of Europe increasing sales by +27% to US$ 1.3 billion, Mexico reporting a +12% increase on revenues to US$ 1.1 billion and South and Central America climbing to net figure of US$ 607 million, a +20% increase.More impressive growth was reported from Africa and the Middle East where a +60% increase in sales over the second quarter of 2007 saw Cemex hit US$ 286 million revenues in the region. Likewise, the Asia and Australia region reported incredible results to see a period-to-period +468% increase in net sales to US$ 614 million (due to the addition of Rinker’s Australian operations).