Cemex Holdings Philippines Inc. posted a net income of P802 million in the first half of the year, a turnaround from a loss of P585 million in the same period last year.
Cemex said in a disclosure to the stock exchange first-half sales rose four percent to P12.4 billion year-on-year as lower domestic volumes were offset by higher cement prices.
Domestic cement volumes in the six-month period declined two percent due to the slowdown in construction related to the delayed approval of the national budget and restrictions on building activity surrounding the mid-term elections. Cement prices, however, rose six percent on year.
Cemex remains positive on industry outlook and sees demand increasing by 8 percent to 12 percent for the rest of 2019.
“During the first six months of 2019, we faced challenging operational and market circumstances. Nevertheless, we concentrated our efforts on the variables within our control, and we are proud of the progress we have achieved during the first half of 2019,” said Cemex president and chief executive Ignacio Mijares.
“We believe that this moderation in construction activity is temporary as solid macroeconomic fundamentals and the government’s drive to build infrastructure will support growth in the second half of the year,” Mijares added.
The company registered a profit of P634 million in the second quarter, a sharp reversal from a loss of P654 million in the same period a year ago.
Second-quarter net sales also rose two percent to P6.12 billion.
Cemex said while construction activities usually peak in the second quarter of the year, public sector disbursements on infrastructure and capital outlays slowed down from January to April this year due to the delay in national budget approval and the temporary ban on construction-related activities amid the conduct of mid-term elections.
Disbursements picked up in May and continue to show signs of improvement as the government is catching up on its spending targets.
“As private and public construction activity is expected to pick up, I look forward to the second half of the year as we continue to focus on delivering on our commitments and providing value for all our stakeholders,” said Mijares.
