April 25, 2008

Mexico's Cemex profit rises

MEXICO CITY

First-quarter profits for Cemex SAB de CV, one of the largest cement producers in the world, rose 18 per cent to US$470 million, the company reported.

Cemex attributed the first-quarter sales gain to better “supply-demand dynamics” in most of the company’s markets and the integration of Australian building materials maker, Rinker Group Ltd., into its operations.

“The diversity of our asset portfolio and the greater synergies identified in the Rinker integration helped Cemex to overcome a challenging en vironment,” Cemex executive vice-president Hector Medina said in a statement.

The company said its sales last quarter grew 26 per cent to US$5.4 billion.

Quarterly sales were up two per cent in Mexico, the company’s home market, and rose 43 per cent in the United States, despite a slowdown in the housing market.

Sales increased one per cent in Spain and 28 per cent in the rest of Europe.

First-quarter earnings before interest, taxes, depreciation and amortization rose 10 per cent from the same period a year ago to US$951 million.

Medina said Cemex will focus on paying down debt, much of it from the $15.3 billion acquisition of Rinker in July. Net debt declined by about $91 million during the fourth quarter and stood at about $18.8 billion.

Associated Press

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