MONTERREY, July 27 (Reuters) - Mexican cement producer Cemex
on Monday reported a $44 million loss for the second quarter
after sales plummeted across most of its markets due to
The loss, a sharp reversal from Cemex's $155 million profit
during the year-ago period, was driven by a quarter in which the
company was hobbled by restrictions in markets ranging from
Mexico to the Middle East.
"We expect that COVID-19 will continue to challenge our
operations in new ways over the next few quarters," Chief
Executive Officer Fernando González said.
The company's sales declined between 10% and 30%
across most of its markets, except in the United States, where
it reported $1 billion in net sales, an increase of 1% over the
same period last year.
"The United States continued to enjoy strong demand momentum
in the second quarter driven by the infrastructure and
residential sectors," the company said in its second quarter
Other markets including Europe, the Middle East, Africa,
Asia and Latin America all saw declines in sales driven by
coronavirus-related government restrictions, including industry
shutdowns in Colombia, Panama and Trinidad and the two-month
closure of a plant in the Philippines.
Subsidiary Cemex Latam Holdings (CLH) reported a
second-quarter profit of $11 million, versus a loss of $4
million in the year-earlier period, after benefiting positively
from foreign exchange rates and higher cement prices in
Colombia, its main market.
CLH said in a filing with Colombia's financial regulator
that sales fell 41% to $148 million in the second quarter.
Monterrey-based Cemex, which operates in more than 50
countries, said earlier this year it was delaying capital
expenditure and cutting a percentage of employees' salaries or
allowances for a period of three months to reduce costs amid the
(Reporting by Laura Gottesdiener in Monterrey and Ankit Ajmera
in Bengaluru; additional reporting by Oliver Griffin in Bogota;
Editing by Steve Orlofsky)