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.