Cement manufacturer Cemex Holding Philippines Inc. said net income plunged 69 percent in the second quarter to P136.5 million from P436.1 million in the same period last year, on weak demand and lower cement prices.
CHP said in a disclosure to the stock exchange, second-quarter sales declined 12 percent to P5.6 billion, while cost of sales dropped 3 percent to P3.3 billion. As a result, gross profit went down 22 percent to P2.3 billion.
The cement firm said sales volume declined 3 percent in the second quarter from a year ago, while prices also went down 9 percent on heightened competitive conditions and the continued presence of imports in the markets.
The longer-than-expected shutdown of its Apo cement plant in Cebu in the second quarter temporarily affected the company’s cement output.
First-half net income also declined 46 percent to P486 million from P896 million in the same period last year, as sales dropped 14 percent to P10.98 billion.
Financial expenses in the first half declined 34 percent year-on-year, as a result of the refinancing of the company’s US dollar-denominated loan with local debt.
“I am confident that the company’s resilience and proven operational excellence, demonstrated throughout the years, will allow us to strengthen our current position. Together with the Philippine government’s positive outlook for construction activity, we remain optimistic for the second half of 2017,” newly elected CHP president and chief executive Ignacio Mijares said.
Cemex’s share price tumbled 10.5 percent to close at P6.30 Thursday.
The cement firm earlier projected 3-percent growth in cement volume in 2017. It budget a little over P2 billion for 2017 capital expenditures primarily to expand its Solid Cement plant.