Cemex boosts earnings in Q3, restructuring plan continues with asset sales (updated)
UPDATE 1-Cemex boosts earnings in Q3, restructuring plan continues with asset sales Adds analysts comments in paragraphs 3 and 10, share move in paragraph 5.
By Kylie Madry
MEXICO CITY, Oct 26 (Reuters) - Mexican cement producer Cemex CEMEXCPO.MX posted a 12% jump in third-quarter core earnings on Monday as the company continued cost-cutting measures with sales of non-core assets and cement volumes rose.
Operating earnings before interest, taxes, depreciation and amortization (EBITDA) rose from a year earlier to $990 million in the July-September period, beating forecasts.
Cemex reported "better-than-expected profitability," according to Barclays, while local analysis firm Ve Por Mas called the results "positive", stating that revenue figures also exceeded consensus estimates.
Company shares rose a timid 0.8% in the morning, outperforming Mexico's benchmark S&P stock index .MXX which rose 0.1%.
Chief Executive Jaime Muguiro said in a statement that Cemex had continued its transformation plan "despite a volatile macro backdrop," including the sale of ready-mix and recycled concrete assets in Atlanta.
The company has also started negotiations with Vicat VCTP.PA for the sale of concrete assets in France, the statement added.
Muguiro took the helm of the cement maker last year and has since led a cost-cutting drive to shed non-core assets and trim the company's workforce.
Since the asset pruning initiative started in 2025, Cemex has gathered over $200 million in divestment proceeds, according to the statement.
Net sales rose 8% to $4.59 billion in the third quarter, fueled by higher gray cement volumes. Revenue in Mexico, its main market, was up 16% supported by government social programs.
The company expects Mexico's industry demand to remain constructive with "continued momentum in residential construction in 2027."
Itau analysts highlighted the company's guidance remaining unchanged despite energy-cost headwinds.
(Reporting by Kylie Madry; Writing by Aida Pelaez-Fernandez; Editing by Keith Weir and Iñigo Alexander)
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