Latest news with #JaimeMuguiro
Yahoo
24-07-2025
- Business
- Yahoo
Mexico's Cemex posts double-digit profit rise as restructuring kicks in
By Kylie Madry MEXICO CITY (Reuters) -Mexican cement producer Cemex posted a double-digit increase in second-quarter profit on Thursday, despite a dip in sales, as its new management rolled out a restructuring program that included thousands of layoffs. Cemex's profit climbed 38% to $318 million, a bright spot as sales sagged 5% to $4.13 billion, and core earnings measured by EBITDA dropped 11% to $823 million. All figures were largely in line with estimates from analysts polled by LSEG. The cement producer, one of the world's largest, saw fewer volumes in two of its top markets, Mexico and the United States. In Mexico, record rainfall and a slowdown in public infrastructure projects under the new administration weighed on performance. In the U.S., the decline was driven by heavy rains and a subtle residential construction sector. Still, volumes in the Middle East and Africa surged amid new housing and infrastructure projects. The results mark the first quarterly report under CEO Jaime Muguiro, who previously led Cemex's U.S. operations before taking over as group chief. Muguiro, in a statement, detailed progress on Cemex's previously announced cost-saving program, adding "difficult decisions" had been taken in the quarter as headcount would come down further. Cemex's workforce shrank 5% year-over-year to around 43,000 employees in the second quarter. Operating expenses came down 3%, mostly from lower spending in logistics and distribution. Now, the cement and concrete maker expects a $200 million boost to its EBITDA this year from the cost cuts, up from a previously forecast $150 million. For the full year, Cemex expects its EBITDA to remain flat, though it does see potential for the metric to come in slightly higher. By 2027, the spending cuts are expected to total $400 million, Cemex said, with layoffs alone contributing $200 million in annual savings. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-07-2025
- Business
- Yahoo
Mexico's Cemex posts double-digit profit rise as restructuring kicks in
By Kylie Madry MEXICO CITY (Reuters) -Mexican cement producer Cemex posted a double-digit increase in second-quarter profit on Thursday, despite a dip in sales, as its new management rolled out a restructuring program that included thousands of layoffs. Cemex's profit climbed 38% to $318 million, a bright spot as sales sagged 5% to $4.13 billion, and core earnings measured by EBITDA dropped 11% to $823 million. All figures were largely in line with estimates from analysts polled by LSEG. The cement producer, one of the world's largest, saw fewer volumes in two of its top markets, Mexico and the United States. In Mexico, record rainfall and a slowdown in public infrastructure projects under the new administration weighed on performance. In the U.S., the decline was driven by heavy rains and a subtle residential construction sector. Still, volumes in the Middle East and Africa surged amid new housing and infrastructure projects. The results mark the first quarterly report under CEO Jaime Muguiro, who previously led Cemex's U.S. operations before taking over as group chief. Muguiro, in a statement, detailed progress on Cemex's previously announced cost-saving program, adding "difficult decisions" had been taken in the quarter as headcount would come down further. Cemex's workforce shrank 5% year-over-year to around 43,000 employees in the second quarter. Operating expenses came down 3%, mostly from lower spending in logistics and distribution. Now, the cement and concrete maker expects a $200 million boost to its EBITDA this year from the cost cuts, up from a previously forecast $150 million. For the full year, Cemex expects its EBITDA to remain flat, though it does see potential for the metric to come in slightly higher. By 2027, the spending cuts are expected to total $400 million, Cemex said, with layoffs alone contributing $200 million in annual savings. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
24-07-2025
- Business
- Reuters
Mexico's Cemex posts double-digit profit rise as restructuring kicks in
MEXICO CITY, July 24 (Reuters) - Mexican cement producer Cemex ( opens new tab posted a double-digit increase in second-quarter profit on Thursday, despite a dip in sales, as its new management rolled out a restructuring program that included thousands of layoffs. Cemex's profit climbed 38% to $318 million, a bright spot as sales sagged 5% to $4.13 billion, and core earnings measured by EBITDA dropped 11% to $823 million. All figures were largely in line with estimates from analysts polled by LSEG. The cement producer, one of the world's largest, saw fewer volumes in two of its top markets, Mexico and the United States. In Mexico, record rainfall and a slowdown in public infrastructure projects under the new administration weighed on performance. In the U.S., the decline was driven by heavy rains and a subtle residential construction sector. Still, volumes in the Middle East and Africa surged amid new housing and infrastructure projects. The results mark the first quarterly report under CEO Jaime Muguiro, who previously led Cemex's U.S. operations before taking over as group chief. Muguiro, in a statement, detailed progress on Cemex's previously announced cost-saving program, adding "difficult decisions" had been taken in the quarter as headcount would come down further. Cemex's workforce shrank 5% year-over-year to around 43,000 employees in the second quarter. Operating expenses came down 3%, mostly from lower spending in logistics and distribution. Now, the cement and concrete maker expects a $200 million boost to its EBITDA this year from the cost cuts, up from a previously forecast $150 million. For the full year, Cemex expects its EBITDA to remain flat, though it does see potential for the metric to come in slightly higher. By 2027, the spending cuts are expected to total $400 million, Cemex said, with layoffs alone contributing $200 million in annual savings.
Yahoo
30-04-2025
- Business
- Yahoo
Why CEMEX, S.A.B. de C.V. (CX) Surged on Monday
We recently published an article titled . In this article, we are going to take a look at where CEMEX, S.A.B. de C.V. (NYSE:CX) stands against the other stocks. The stock market kicked off the trading week on a mixed note, with two major indices ending in the green, as investors continued to digest more corporate earnings results. Among the bellwether indices, only the Nasdaq ended in the red, dropping 0.10 percent. In contrast, the Dow Jones grew by 0.28 percent and the S&P 500 inched up by 0.06 percent. Meanwhile, 10 companies mirrored a broader market optimism, as investors snapped up shares ahead of their first-quarter earnings performance in the next few days. To come up with the list, we considered only the companies with a $2-billion market capitalization and $5-million trading volume. A pile of cement on the top of the wheelbarrow in construction site. CEMEX, S.A.B. de C.V. (NYSE:CX) extended its winning streak for a fifth straight day on Monday, adding 4.56 percent to close at $6.19 apiece, as investors took heart from the company's strong performance and its new CEO's promise to deliver further profit growth and shareholder value. In a statement, CEMEX, S.A.B. de C.V. (NYSE:CX) CEO Jaime Muguiro said that he will focus on operational efficiency and follow a disciplined capital allocation strategy. Through the 'Project Cutting Edge' cost savings initiative, CX aims to save at least $150 million in recurrent annual EBITDA this year and $350 million by 2027. The announcement followed CEMEX, S.A.B. de C.V.'s (NYSE:CX) strong earnings performance in the first quarter of the year, with its net income soaring by 189 percent to $734 million from $254 million in the same period a year earlier, driven mainly by the sale of its Dominican Republic operations. Revenues, on the other hand, dipped by 1 percent to $3.6 billion from $3.9 billion amid higher prices that offset lower volumes. Overall CX ranks 10th on our list of the best performing stocks on Monday. While we acknowledge the potential of CX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Cemex SAB de CV (CX) Q1 2025 Earnings Call Highlights: Record Net Income and Strategic ...
Net Sales: Resilient performance with pricing strategy partially mitigating volume declines in Mexico and the US. EBITDA Margin: Supported by higher prices, lower energy and freight costs, partially offset by volume impact and higher labor costs. Net Income: Record net income driven by the gain on divestment of Dominican Republic operations. Free Cash Flow: Impacted by lower EBITDA, severance payments, and discontinued operations; expected to improve throughout the year. Pricing Strategy: Cement and ready-mix prices rose 2%, aggregate prices increased by 4% sequentially. CO2 Emissions: Reduced net CO2 emissions per ton of cement equivalent by 1.6% year-over-year. Energy Costs: Declined by 17% per ton of cement, contributing to cost savings. Leverage Ratio: Stood at 1.9 times, slightly higher than December. Project Cutting Edge: Expected to realize recurring yearly EBITDA savings of at least $350 million by 2027, with $150 million expected in 2025. Urbanization Solutions Portfolio: EBITDA growth of 16% in South, Central America, and the Caribbean region, with margin expansion of more than 4 percentage points. Warning! GuruFocus has detected 3 Warning Sign with CX. Release Date: April 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cemex SAB de CV (NYSE:CX) appointed Jaime Muguiro as the new CEO, bringing nearly three decades of experience within the company. The company is implementing Project Cutting Edge, a cost savings program expected to deliver recurring yearly EBITDA savings of at least $350 million by 2027. Cemex SAB de CV (NYSE:CX) reported record net income, primarily driven by the gain on divestment of its Dominican Republic operations. The company achieved a 1.6% reduction in net CO2 emissions per ton of cement equivalent year-over-year, aligning with its decarbonization goals. Cemex SAB de CV (NYSE:CX) is focusing on enhancing shareholder returns through a balanced capital allocation policy, including potential share buybacks and progressive dividends. First-quarter results were impacted by peso depreciation, resulting in a $65 million headwind for the Mexican operations. Adverse winter conditions in the US and Eastern Europe negatively affected the company's results. The company faced a challenging demand environment in Mexico, with a significant decline in cement volumes due to a strong pre-election comparison base. Free cash flow was impacted by lower EBITDA, severance payments, and the effect of discontinued operations. The urbanization solutions portfolio experienced a 14% decline in sales, although EBITDA margin expanded slightly. Q: Jaime, could you provide more details on the cost reduction potential of Project Cutting Edge and your focus areas for geographical mix and investments? A: Jaime Muguiro, CEO: Yes, Project Cutting Edge is just the beginning. We are focusing on significant savings in supply chain, logistics, and procurement. We aim to reduce overheads and empower regions to improve margins. Geographically, we will continue focusing on Mexico, the US, and Europe, optimizing CapEx and potentially divesting assets that do not meet our return criteria. Q: Can you elaborate on how Project Cutting Edge aligns with investor interests and any specific KPIs you plan to implement? A: Jaime Muguiro, CEO: Yes, we plan to introduce EBIT free cash flow conversion and ROCE over WACC as key performance indicators. These will be integrated into executive compensation and reviewed twice a year to ensure alignment with investor interests. Q: Will there be any strategic changes in the urbanization solutions segment under your leadership? A: Jaime Muguiro, CEO: We see great potential in certain verticals like mortars, stuccos, and circularity, particularly in Europe. We aim to responsibly grow our urbanization solutions business, focusing on Mexico, the US, and Europe, and exploring light side solutions. Q: Where do share buybacks rank in your capital allocation priorities? A: Jaime Muguiro, CEO: Share buybacks are part of our toolkit, approved for up to $500 million. We aim to enhance shareholder returns through progressive dividends and opportunistic buybacks, while also focusing on deleveraging and accretive acquisitions in the US. Q: How do you plan to address the potential impact of tariffs on cement imports? A: Jaime Muguiro, CEO: We are prepared to introduce a tariff surcharge if necessary and have flexibility to switch import sources, leveraging our Mexican network. We are also improving operational efficiency in the US to reduce reliance on imports. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
