By Kylie Madry
MEXICO CITY (Reuters) – Mexican cement maker Cemex reported an 18% dip in its core earnings for the first quarter on Monday, driven largely by headwinds in the local market.
Cemex reported earnings before interest, taxes, depreciation and amortization of $601 million, in line with estimates, due to a weaker peso currency and a dip in volumes at home, it said in a filing.
The peso caused a $65 million hit to EBITDA, Cemex said, while volumes dropped in Mexico due to a rush last year to finish government infrastructure projects before presidential elections.
The firm expects its full-year EBITDA to come in upward of $3 billion, and held that forecast on Monday.
The U.S. was Cemex’s largest market by sales in the first quarter – followed by Europe, the Middle East and Africa – and then Mexico.
Total sales slipped 7% to $3.65 billion, also in line with the LSEG-compiled estimate, as higher prices failed to fully offset lower volumes.
Cement and ready-mix volumes ticked up slightly, though aggregates came down 4%, Cemex said.
The results come after Cemex’s long-time CEO Fernando Gonzalez retired at the beginning of this month, with Cemex USA head Jaime Muguiro replacing him.
The firm has shifted its focus in recent years toward the U.S., selling off non-core businesses including in Guatemala, the Philippines and the Dominican Republic. In February, Bloomberg News reported that Cemex was gauging interest for a potential sale of its Colombia unit.
Cemex said on Monday it was still eying small- to mid-size acquisitions in the United States.
In the quarter, Cemex’s net profit nearly tripled to $734 million, boosted by the Dominican Republic sale. According to Cemex, $618 million of its net profit in the quarter came from discontinued operations.
(Reporting by Kylie Madry; Editing by Lincoln Feast)
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