Cemex LatAm Posts 2Q 2019 Net Loss, but Colombia Sales Rise Year-on-Year
Colombia-based Cemex LatAm – producer and marketer of cement and concrete in Colombia, Panamá, Costa Rica, Nicaragua, El Salvador and Guatemala – on July 25 posted a second quarter (2Q) 2019 net loss of US$4 million, down from a US$4 million net profit in 2Q 2018.
However, consolidated volumes of gray cement reached 1.5 million tons during 2Q 2019, up 2% year-on-year, “driven by higher volumes mainly in Colombia,” according to the company.
“In Colombia, net sales increased by 7% during the quarter in terms of local currency, driven by higher cement volumes, as well as higher cement and aggregate prices,” according to Cemex.
“However, this positive trend in sales was not enough to mitigate the increase in costs of coal, electricity and distribution in Colombia, nor the weakness in Central American markets,” added Cemex LatAm general director Jaime Muguiro.
“Despite this challenging environment, we are satisfied with the generation of free cash flow and debt reduction during the first half [2019]. Our free cash flow reached US$40 million in this period, an improvement of US$24 million compared to the same period of 2018. We reduced our net debt by US$45 million, from US$827 million in December [2018] to US$782 million in June [2019],” he said.
