LISTED cement manufacturers saw higher earnings in the third quarter, as they focused on cost and operational efficiency amid a slowdown in construction activity.
Holcim Philippines, Inc. reported a 159% growth in attributable net income to P457.2 million in the July to September period, while Cemex Holdings Philippines, Inc. swung to a net income of P150.49 million from a net loss of P5.78 million last year.
Holcim posted a 3% decline in net sales to P8.28 billion due to lower volumes of cement sold during the period, but “cost improvements across all our operations coupled with better prices of cement and aggregates” pulled up the bottomline.
For Cemex, net sales also went down 3% to P5.87 billion due to lower cement volumes from a slowdown in construction activity. But gross profit climbed 7% to P2.42 billion because of an 8% reduction in cost of sales to P3.44 billion.
In the nine months to September, Holcim’s attributable net income increased 8% to P1.88 billion, while Cemex’s net income soared 1,066% to P1.18 billion.
“Our intensified focus on cost and operational efficiency across all our operations has allowed us to sustain high performance levels amidst a still muted market environment,” Holcim Philippines President and Chief Executive Officer John Stull said in a statement Friday.
The company’s profit from operations stood at P2.94 billion at the end of September, climbing 17% from the same period a year ago.
“We have seen better pricing and a favourable product mix. With our new and improved cement production and dispatch facilities commissioned this year, we are ready to capture opportunities as the market grows and deliver innovative products and solutions to our customers,” Mr. Stull said.
Cemex, on the other hand, noted that “net income for (the nine months) benefited mainly from higher operating earnings, foreign exchange gains and lower income tax expenses.”
Cemex was able to record a 46% growth in operating earnings to P2.12 billion during the nine-month period, as foreign exchange gains stood at P128 million from a foreign exchange loss of P546 million last year, and income tax expenses trimmed 60% to P303 million. — Denise A. Valdez
