By Anthony Harrup


MEXICO CITY--Mexican cement maker Cemex SAB said its second-quarter net profit was lower than a year earlier as rising energy and other costs offset revenue gains from higher sales prices.

Monterrey, Mexico-based Cemex, one of the world's largest building materials companies, reported profit of $265 million for the April-June period, compared with $270 million in the year-earlier quarter.

Profit was equivalent to 18 U.S. cents an American depositary share.

Higher prices in all regions were the main driver of a 7% increase in sales, to $4.1 billion, Cemex said Thursday.

Cement sales by volume were down 7%, at 16.3 million metric tons, aggregates volume rose 1%, to 35.5 million metric tons, and ready mix concrete volume rose 4%, to 13 million cubic meters.

Earnings before interest, taxes, depreciation and amortization-a measure of profitability-fell 10%, to $723 million, and operating profit fell 16%, to $436 million. Cemex said it expects Ebitda growth this year to be in low-to-mid-single digits.

The company increased its projected capital expenditures for the year by $100 million, to $1.3 billion.

In the U.S., sold-out markets contributed to higher prices and a 15% increase in revenue, to $1.3 billion, although shortages caused by supply-chain disruptions led to a slight decline in cement sales volume. Ebitda in the U.S. fell 24%, to $162 million, affected by higher costs in energy, maintenance, imports and logistics.

Demand in Mexico was driven by building of manufacturing plants in the north of the country and hotel construction in tourist destinations, while bagged cement volume was lower after unusually strong sales a year ago amid pandemic-related home improvements and government pre-election social spending, Cemex said.


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


(END) Dow Jones Newswires

07-28-22 0829ET