Cemex sees Q3 decline

By Chris Sleight26 October 2010

Cemex's sales for the third quarter of the year were down -2% on the same period last year at US$ 3.77 million. This continued the trend for the year, with sales for the first nine months of the year coming in -5% lower than last year at US$ 10.6 billion.

Operating profits for the third quarter were down -25% to US$ 284 million. With a US$ 125 million impairment charge added on due to losses on asset sales and severance pay, the company made a net loss of US$ 86 million for the quarter, compared to a profit of US$ 78 million a year ago.

Europe and the US both performed badly for the company in the third quarter, with revenues down -9% in both regions. Cemex did however manage to make a respectable 13.9% operating margin in Europe, although this was down from the 16.2% margin seen in Q3 2009. In the US however, it made a loss of US$ 2 million, compared to a profit of US$ 45 million last year.

Africa and the Middle East was also a difficult region, with sales falling -4% to US$ 246 million. However, the company's operating profit rose +18% to a massive US$ 103 million, for a 42% margin. In South & Central America sales were down -3% and operating profits fell with them.

Revenues in the company's home market of Mexico were up +14%, while net sales in Asia rose +9%. However, both came at the expense of profitability, with operating profits falling -3% in Mexico and -9% in Asia.

Delivered directly to your inbox, World Construction Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Longer Reads
7 ways construction is tackling sustainability
As the need for sustainability becomes more apparent across the globe, firms are launching new proposals to meet these growing demands
10 ways to join the hydrogen power revolution
Interest in the use of hydrogen has soared over the past few years as the construction industry races to reduce its carbon footprint. We roundup some recent initiatives
Telescopic boom lifts - the trends
Higher capacities and 100% electric models are the trend. And what lies ahead for 200ft models, or above?
Andy Brown Editor, International Construction Tel: +44 (0) 1892 786 224 E-mail: andy.brown@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com