By Anthony Harrup

MEXICO CITY--Mexican building materials company Cemex posted a sharp increase in third-quarter net profit as lower taxes and gains from an asset sale offset the impact of adverse weather on sales.

Cemex reported net profit of $406 million, or 14 cents an American depositary share, for the July-September period. Profit more than tripled from $126 million in the third quarter of 2023, "driven primarily by a lower effective tax rate and the gain from the sale of our operations in Guatemala," Cemex said Monday.

Third-quarter sales fell 6% to $4.09 billion as a decline in sales volume offset higher prices in local currencies. Unfavorable weather conditions affected sales in all regions, including in the U.S. where three major hurricanes and above-average rainfall contributed to a 6% drop in cement volume and 11% decline in ready-mix concrete, Cemex said.

Heavy rain and a slowdown in construction activity following the June general election affected sales volume in Mexico.

Cemex's overall cement sales by volume fell 4% to 11.3 million metric tons, aggregates sales volume was down 2% at 35.5 million tons, and ready-mix concrete volume fell 6% to 11.4 million cubic meters.

Earnings before interest, taxes, depreciation and amortization were down 13% from a year earlier at $747 million, and operating profit fell 23% to $428 million.

Cemex cut its 2024 Ebitda guidance, predicting a low single-digit decrease instead of its previous estimate of a low to mid-single digit increase. The company also cut expected capital expenditures for this year to $1.5 billion from $1.6 billion.

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

October 28, 2024 12:11 ET (16:11 GMT)

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