Cemex beat all expectations on Thursday with a nearly ten-fold lift in its first-quarter net profit.
Cemex earned $336 million in net profit in the quarter, compared to $35 million in the same period in 2016, and $95 million forecast in a Reuters poll of analysts.
The nearly ten fold leap was driven mostly by asset sales. During the quarter, Cemex gained $152 million on the sale of a concrete tube business in the United States and another $98 million in financial instruments from the sale of a portion of local unit GCC.
"We have around $230 million in pending announced asset sales set to close," Fernando Gonzalez, chief executive Cemex, said in a statement.
The company's consolidated net sales grew a percent to $3.14 billion during the quarter, but grew 6% when adjusted for currency fluctuations and disinvestments.
Cemex said its total debt fell 3.7% in the first quarter to $12.16 billion.
First-quarter 2017 highlights
- Net sales in Cemex operations in Mexico increased 28% on a like-to-like basis in the first quarter of 2017 to $725 million
- Operating EBITDA increased by 31% on a like-to-like basis to $267 million versus the same period of last year
- Cemex’s operations in the United States reported net sales of $834 million in the first quarter of 2017, up 2% on a like-to-like basis from the same period in 2016. Operating EBITDA increased by 32% on a like-to-like basis to US$118 million in the quarter
- Cemex’s operations in South, Central America and the Caribbean reported net sales of $480 million during the first quarter of 2017, representing a decrease of 1% on a like-to-like basis over the same period of 2016. Operating EBITDA decreased 15% on a like-to-like basis to $133 million in the first quarter of 2017.
- In Europe, net sales for the first quarter of 2017 increased 5% on a like-to-like basis to $711 million. Operating EBITDA was $33 million for the quarter, 30% lower on a like-to-like basis than the same period last year.
- Operations in Africa, Middle East and Asia reported an 8% decrease on a like-to-like basis in net sales for the first quarter of 2017, to $326 million, versus the first quarter of 2016. Operating EBITDA for the quarter was $64 million, down 26% on a like-to-like basis from the same period last year
