Sales at Cemex dropped 4 percent in the third quarter to $1.33 billion, with the company citing adverse weather as a source of the decline.
Cemex’s EBITDA also declined 4 percent to $258 million. The company’s EBITDA margin remained at 19.3 percent.
Globally, Cemex says sales declined 3 percent to $4.09 billion. The company’s global EBITDA dropped 9 percent to $747 million.
According to Cemex, its pricing strategy proved valuable in the current lower-volume environment. The company says product prices rose in the low-single digits during the third quarter.
Cemex also made divestments of $1.4 billion in the third quarter, bringing its total 2024 noncore asset divestitures assets to $2.2 billion.
“I am pleased with the significant progress we have made this year with our portfolio optimization efforts,” says Fernando González, CEO of Cemex. “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 U.S., while continuing to deleverage and build on our recently instituted progressive shareholder return program.
“Our growth strategy adopted since 2019 has proven to be a great complement to organic growth,” González adds. “Together, both levers have delivered a compounded annual growth rate of 14 percent for the company. With the proceeds from recent divestitures, we will continue to execute our small bolt-on investment strategy while accelerating growth through small to midsize M&A transactions to serve our existing geographic footprint.”
