Cemex earns 24% less in Q1

MANILA, Philippines -  Cemex Holdings Philippines Inc., the Philippine subsidiary of the Mexican cement giant, reported a 24 percent drop in its first quarter net income to P350 million.

It said cement volumes were lower by nine percent due to adverse weather conditions that persisted from last year into January and February and a high base of comparison, which was marked by strong construction activity prior to the 2016 elections.

 “The first quarter sales performance has been challenging, but we are encouraged by improvements in cement volumes versus the prior quarter and a strong sales performance in March which was the highest in the last 17 months. As a result, our revenues also increased by two percent versus the prior quarter,” said company president and CEO Pedro Jose Palomino.

CHP’s prices declined by seven percent on a year-on-year basis but the lower volume and price were partially mitigated by better cost of sales and lower financial expenses.

Despite the challenging demand situation, Palomino said the company remains motivated by rosy prospects of the Philippine construction industry, especially in light of government’s pronouncements on infrastructure investments.

“In the meantime, we remain focused on managing variables under our control and our plans for growth in the country remain intact,” he said.

 CHP 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.