MEXICO CITY, Oct 28 (Reuters) - Mexico's Cemex
beat estimates to post a 19% jump in third-quarter
core earnings as it boosted prices and benefited from
cost-cutting measures.
The cement maker said on Tuesday that it had logged $882
million in earnings before interest, taxes, depreciation and
amortization (EBITDA) for July-September, comfortably above an
LSEG consensus estimate of $858 million.
Increased prices helped revenue tick 5% higher, despite
cement sales volumes being flat while volumes for ready-mix
concrete and aggregates such as sand and gravel slipped
slightly.
Cost-cutting measures including headcount reductions
resulted in around $90 million in savings. Cemex's workforce
dropped to just over 40,200 employees in the quarter, a 9%
decline from the same period a year earlier.
Net income tumbled 35% to $264 million, mainly due to
one-off gains the previous year from the sale of operations in
Guatemala. Without that factor, net profit climbed 8%, Cemex
said.
Under CEO Jaime Muguiro, who took the helm in April after
his predecessor retired, Cemex has sought to shed non-core
assets and focus more on its aggregates business in the United
States. In July, he flagged that more divestitures were in the
works.