Cemex Philippines saw its net income fall by 69 per cent in the 2Q17 to PHP136.5m (US$270m) from PHP436.1 in the same period of 2016 as demand softened and cement prices eased.
In a disclosure to the stock exchange, the company reported a 12 per cent decline in sales to PHP5.6bn, while cost of sales fell three per cent to PHP3.3bn. Gross profit was down 22 per cent to PHP2.3bn.
Sales volume declined three per cent in the second quarter from a year ago, while prices also fell by nine percent on heightened competitive conditions and the continued presence of imports in the markets.
Cement output at the company was affected by a longer-than-expected shutdown of its Apo works in Cebu.
First-half net income also declined 46 per cent to PHP486m from PHP896m in the same period last year, as sales dropped 14 per cent to PHP10.98bn.
1H17 financial expenses declined 34 per cent YoY, as a result of the refinancing of the company’s US dollar-denominated loan with local debt.
“I am confident that the company’s resilience and proven operational excellence, demonstrated throughout the years, will allow us to strengthen our current position. Together with the Philippine government’s positive outlook for construction activity, we remain optimistic for the second half of 2017,” Cemex Philippines President and CEO, Ignacio Mijares, said.
