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Mexico's CEMEX posts $1.5 bln Q3 loss, even as net sales rebound

Credit: REUTERS/DANIEL BECERRIL

Mexican cement producer Cemex on Wednesday reported a net loss of $1.54 billion in the third quarter, even as sales rebounded across all of its markets following a second-quarter decline amid coronavirus-related lockdowns.

Adds CEO statement and sales details

MONTERREY, Mexico, Oct 28 (Reuters) - Mexican cement producer Cemex CEMEXCPO.MX on Wednesday reported a net loss of $1.54 billion in the third quarter, even as sales rebounded across all of its markets following a second-quarter decline amid coronavirus-related lockdowns.

The company, which operates in more than 50 countries, said the third-quarter loss was due to a $1.5 billion non-cash impairment of goodwill and idle assets, coupled with higher financial expenses. The company announced the non-cash impairment earlier this month.

"We are pleased with our performance in the third quarter in which all regions participated in earnings recovery," CEMEX Chief Executive Fernando Gonzalez said in a press statement.

"We continued to derisk the business with the reduction in our net leverage ratio and the extension of our bank maturities with the successful refinancing of the Facilities Agreement," he added.

CEMEX reported $3.4 billion in third-quarter sales, a 3% increase compared with the same quarter last year. This marks a rebound from the second-quarter declines across all of CEMEX's markets except for the United States, as coronavirus restrictions hampered construction activity across most of the world, including industry shutdowns in Colombia, Panama and Trinidad and the two-month closure of a CEMEX plant in the Philippines.

The third-quarter sales growth was driven by a 14% year-over-year increase in Mexico, as well as 2% year-over-year growth in CEMEX's Europe, Middle East, Africa and Asia region.

In the U.S. market, CEMEX reported net sales of $1 billion, marking a 1% increase over the same period last year.

(Reporting by Laura Gottesdiener; Editing by Kim Coghill and Marguerita Choy)

((laura.gottesdiener@thomsonreuters.com;))

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