PROFITS of Cemex Holdings Philippines, Inc. grew more than eight times in the three months ending September on the back of improved operating earnings and foreign exchange gains.
The cement manufacturer said in a disclosure on Thursday its third quarter consolidated net income stood at P623.12 million, up 761% from the same period last year.
Its net sales slid 6% to P5.52 billion, but was offset by a 29% increase in operating earnings to P836.67 million, and a turnaround to P133.31-million foreign exchange gains from P146.48- million foreign exchange losses last year.
On a year-to-date basis, Cemex’s consolidated net income is down 13% to P758.15 million, while net sales are 17% lower at P15.14 billion.
The company attributed this to a 12% decline in domestic cement volumes and a 5% contraction in cement prices versus the same period a year ago.
However, on a quarter-on-quarter basis, volume and prices have improved 38% and 1%, respectively. This is due to the resumption of construction work when the coronavirus-related lockdown was eased in key cities since June.
“As the country takes steps towards reopening the economy, the impact of the pandemic remains a concern. We must continue to adapt to the challenges and limitations brought about by COVID-19,”Cemex President and CEO Ignacio Alejandro Mijares Elizondo said in a statement.
“Full execution of the government’s infrastructure plan can help accelerate economic recovery. Nevertheless, we continue to be optimistic on the long-term growth prospects of the Philippines,” he added.
The company is expecting to spend P3.68 billion for capital expenditures this year, where P800 million will go to maintenance expenses and P2.88 billion to the expansion of the Solid Cement Plant in Antipolo.
Shares in Cemex at the stock exchange dipped one centavo or 0.63% to close at P1.58 each on Thursday. — Denise A. Valdez