H1 Net income drops 46%

0

Cemex keeps positive business outlook

CEMENT manufacturer Cemex Holdings Philippines said on Thursday it remains optimistic that the company will strengthen its current position after its net income for the first half of the year fell by 46 percent from a year earlier.

Advertisements

Cemex’s net income for the first six months fell to P486 million from P896 million reported in the first half of 2016 on lower cement prices and sales volumes, combined with higher operating expenses.

Lower prices were due to heightened competitive conditions and continuing market imports, as well as the longer-than-expected shutdown of its APO cement plant in Cebu City during the first quarter of the year.

“On a sequential basis, compared against the first quarter of the year, cement volumes in the second quarter increased by 6 percent,” the company said in a disclosure to the Philippine Stock Exchange.

Financial expenses in the same comparable period declined by 34-percent as a result of the refinancing of its US dollar-denominated loan with local debt.

With the conversion and denomination to local currency, other financial expenses–mostly foreign exchange losses–also declined 57-percent versus the same period last year.

“I am confident that the company’s resilience and proven operational excellence, demonstrated throughout the years, will allow us to strengthen our current position,” Cemex President and Chief Executive Officer Ignacio Mijares said.

“Together with the Philippine government’s positive outlook for construction activity, we remain optimistic for the second half of 2017,” he added.

Cemex is one of the leading cement producers in the Philippines based on annual production capacity.

It 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.

Share.
loading...
Loading...

Please follow our commenting guidelines.

Comments are closed.