Cemex Philippines Q1 net income down 24%

Cemex Holdings Philippines Inc. (CHP) posted a consolidated net income of P349.53 million, down 24 percent from P459.47 million a year earlier on lower cement volumes and prices.

Due to adverse weather conditions in January and February, cement volumes declined by 9 percent to 1.2 million metric tons from 1.3 million metric tons, CHP told the Philippine Stock Exchange on Tuesday.

The company noted there was a high base of comparison due to strong construction activities before the elections in the first quarter of 2016.

Cement prices declined by 7 percent year-on-year, mainly on intensified competition from higher import volumes and weaker demand.

Net sales declined by 15 percent at P5.362 billion from P6.328 billion.

“Despite the challenging demand situation, our company remains motivated by the prospects of Philippine construction, especially in light of government’s pronouncements on infrastructure investments. In the meantime, we remain focused on managing variables under our control and our plans for growth in the country remain intact," Pedro Jose Palomino, CHP president and CEO, said.

CHP is the local unit of Mexican cement manufacturing giant Cemex S.A.B. de C.V. Shares of Cemex S. A. B. are listed on both the Mexican Stock Exchange and the New York Stock Exchange. — Ted Cordero/VDS, GMA News