Mexico's Cemex reports 11% jump in net income amid lower financial costs
Adds details from report
MEXICO CITY, Oct 24 (Reuters) - Mexican cement maker Cemex SAB de CV CMXCPO.MX on Thursday reported an 11% jump in controlling interest net income for the third quarter amid lower financial costs, though net sales declined 1%.
Controlling interest net income rose to $187 million during the quarter, from $169 million a year earlier.
The company saw net sales of $3.5 billion, down 1%, amid a drop in volumes in key markets such as Mexico, Asia, the Middle East and Africa. Price increases eased the blow, Cemex said in a report accompanying its results.
Cemex said it was optimistic conditions would improve in Mexico, where net sales declined 16%, the steepest drop in all markets. The company's operating EBITDA, a closely watched measure of profitability, fell even further in Mexico, registering a 24% drop.
The transition to the administration of Mexican President Andres Manuel Lopez Obrador, who took office in December, has affected infrastructure activity, Cemex said.
"In Mexico, we believe demand for our products is bottoming out and we are cautiously optimistic on renewed activity going forward, given the expected announcement of a new infrastructure program," Cemex Chief Executive Fernando Gonzalez said in a statement.
The company's performance in the United States was a bright spot, with net sales jumping 5%. Though hurricane preparations hit volumes in the southeast, strong state transportation spending and a flurry of residential activity boosted sales, Cemex said.
(Reporting by Julia Love and Noe Torres; Editing by Bernadette Baum and Chizu Nomiyama)
((Julia.Love@thomsonreuters.com, @byJuliaLove; 52 (55) 5282-7131;))
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