Mexico's Cemex 3Q profits down 40 percent

Building materials giant Cemex SAB de CV said Tuesday that its net income plunged almost 40 percent in the third quarter on a 27 percent drop in sales.

The Monterrey, Mexico-based company said profits fell to $121 million in July-September, compared to earnings of $200 million in the same period of 2008. Sales declined to $4.2 billion from $5.8 billion.

Even so, executive vice president Hector Medina said he is optimistic after successfully completing the company's refinancing this quarter.

"Despite the continuing effects of the global economic slowdown, we are encouraged by the quarter to quarter stability exhibited by our results," he said. "We will further enhance our position in the coming months by continuing to pay down our debt through capital expenditure reductions and cost-reduction and right-sizing initiatives."

The company's net debt decreased $1.2 billion during the latest quarter, reaching $17.1 billion by the end of September.

Sales were down 27 percent in the company's home market, Mexico, and off 38 percent in the United States. Revenue declined 41 percent in Spain, 26 percent in Britain and 17 percent in the rest of Europe.

From Forbes [2009-10-28]