By Anthony Harrup
MEXICO CITY--Mexican building materials company Cemex swung to a net profit in the fourth quarter, contributing to its biggest full-year profit in almost two decades.
Monterrey, Mexico-based Cemex reported profit of $48 million for the October-December quarter, or $0.16 per American depositary share, compared with a $441 million loss in the year-earlier quarter when results were affected by a tax provision.
Fourth-quarter sales fell 5% to $3.81 billion, and were flat when adjusted for asset sales. Cement sales by volume fell 3% to 10.8 million metric tons, aggregates sales slipped 1% to 33.4 million tons, and ready-mix concrete volumes rose 3% to 11.1 million cubic meters.
Asset sales contributed to the company's full-year profit of $939 million, the highest in Cemex's recent history, it said.
"With the recovery of our investment grade ratings, improved free cash flow generation and the execution of $2.2 billion in asset divestments, we can now pursue more aggressively our capital allocation priorities of growth through small to medium-sized acquisitions, primarily in the U.S.," Cemex said.
The company said it also plans to lower debt further and bolster shareholder returns.
For 2025, Cemex estimates that earnings before interest, taxes, depreciation and amortization will be unchanged from last year, while the company plans capital expenditures of $1.4 billion, including $800 million for maintenance and $600 million for strategic investments.
Operating Ebitda was down 2% at $3.08 billion in 2024, including a 3% decline to $681 million for the figure in the fourth quarter.
Sales volume in Mexico was strong in the first half of 2024, but fell in the second half after elections and as a new government administration took office.
Cemex said it expects difficult volume comparisons and foreign-exchange headwinds in the first half of this year, while "over the medium term, we are optimistic about Mexico's growth prospects, as the new government's agenda is supportive of housing and infrastructure spending."
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
February 06, 2025 09:24 ET (14:24 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.