Cemex Holdings Philippines Inc. booked a net income of P875 million in the first nine months of the year, a reversal from a loss of P663 million year-on-year, on higher operating earnings, foreign exchange gains and lower income tax expenses.
Cemex said in a disclosure to the stock exchange nine-month sales rose 2 percent to P18.2 billion from a year ago.
The company posed a profit of P72 million in the third quarter, a turnaround from a loss of P79 million on year. Third-quarter net sales decreased 3 percent on lower volumes.
Cemex said the domestic cement volumes declined 6 percent in the third quarter of the year due to lower construction activity, mainly related to public infrastructure.
The delays in infrastructure projects negatively impacted on private investment.
Cement prices, however, increased 3 percent in the third quarter as a result of the price adjustment implemented last year.
“We continued to face lower construction activity during the third quarter. Nevertheless, we are pleased with what we have achieved through the first nine months of the year, particularly with our own efforts to optimize costs, maintain efficiencies, and improve our customers’ experience,” said Cemexpresident and chief executive Ignacio Mijares.
“We continue to believe in the long-term growth prospects of the Philippines, as infrastructure remains a vital engine for growth in the country,” Mijares added.
Cost of sales, as a percentage of sales, remained flat, at 59 percent, for the first nine months of the year.
Operating expenses, as a percentage of sales, were lower by 3 percentage points in the first nine months of 2019, with the reduction blamed on the distribution side.
Cemex expects to finalize a planned stock rights’ offering in the third quarter of 2020. The company plans to use the Proceeds from the rights offering to finance the expansion of its Solid Cement plant in Antipolo, Rizal.
Cemex is currently constructing a $235-million net cement production line capable of producing 1.5 million metric tons annually. The expansion will increase cement capacity by 26 percent.
The facility is expected to be operational by the second quarter of 2021.
Cemex 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.
