By Anthony Harrup
Shares of cement maker Cemex fell to their lowest level in nearly a year after the Monterrey, Mexico-based company cut its 2024 sales volume and earnings guidance.
Cemex shares trading on the Mexican stock exchange fell 7.5% to 11.04 pesos ($0.55). The market's benchmark IPC index was off 0.4% at 51596 points.
In its third-quarter earnings report, Cemex said it expects a low single-digit percentage decline in 2024 earnings before interest, taxes depreciation and amortization. Previously, the company had predicted low to mid-single-digit Ebitda growth. Cemex cut its estimates for sales volume, and now sees low to single-digit declines for cement and aggregates and a mid single-digit decrease for ready mix concrete. The company also reduced its estimate for capital expenditures this year to $1.5 billion from $1.6 billion previously.
The lower guidance came as third-quarter Ebitda fell 13% from a year earlier to $747 million, and operating profit was down 23% at $428 million.
Cemex's net profit more than tripled to $406 million in the quarter on lower taxes and the sale of its operations in Guatemala, but revenue fell 6% to $4.09 billion as higher prices in local currencies weren't enough to offset declines in sales volume.
Adverse weather across regions, including three major hurricanes and heavy rainfall in the U.S., contributed to lower sales volume in the quarter. In Mexico, heavy rain and a slowdown in construction activity following the June general election affected sales.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
October 28, 2024 14:48 ET (18:48 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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