Cemex Earnings Report

MONTERREY, Mexico – Cemex, S.A.B. de C.V. (NYSE:CX) reported third-quarter earnings that fell short of analyst expectations, causing its stock to drop 8% on Monday.

The Mexican cement giant reported adjusted earnings per share of $0.14, missing the analyst estimate of $0.20. Revenue for the quarter reached $4.09 billion, below the consensus estimate of $4.26 billion and down 3% YoY. Despite the earnings miss, Cemex's net income grew 222% to $406 million.

Cemex CEO Fernando A. González highlighted the company's progress in portfolio optimization, stating, "I am pleased with the significant progress we have made this year with our portfolio optimization efforts. With the proceeds, we will continue to execute on our capital allocation framework where we intend to prioritize growth investments with particular focus on the US, while continuing to deleverage and build on our recently instituted progressive shareholder return program."

The company announced divestments totaling $1.4 billion during the quarter, raising the year-to-date announced divestitures of non-core assets to $2.2 billion. Cemex attributed the earnings shortfall to adverse weather conditions in all markets and significant foreign exchange movements.

In its geographic markets, Cemex saw sales declines in Mexico (-5%), the United States (-4%), and South, Central America, and the Caribbean (-1%). The Europe, Middle East, and Africa region reported a 1% increase in sales.

Cemex also made progress in its climate action initiatives, reducing year-to-date scope 1 and 2 CO2 emissions by 3% and 4%, respectively. The company's consortium was recently selected to receive €157 million in EU Innovation funding for a carbon capture project at its Rüdersdorf cement plant in Germany.

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