Cemex Philippines H1 net income down 46%

Cemex Holdings Philippines Inc. (CHP) posted a net income of P486 million in the first half of 2017, down 46 percent from P896 million a year earlier on lower cement volumes and prices.

"The decrease in net income for the first half was mainly the result of lower prices and volumes and higher operating expenses," CHP said in a disclosure to the Philippine Stock Exchange on Thursday.

According to the company, the decline in prices resulted from heightened competitive conditions and continuing presence of imports in the market.

"Additionally, a longer-than-expected shutdown of its APO Cement Plant in Cebu during the second quarter temporarily affected cement output," it added.

Cement volumes for the second quarter declined by 6 percent to 1.3 million metric tons from 2.5 million metric tons in the first quarter.

"I am confident that the company’s resilience and proven operational excellence, demonstrated throughout the years, will allow us to strengthen our current position. Together with the Philippine government’s positive outlook for construction activity, we remain optimistic for the second half of 2017," CHP president and CEO Ignacio Mijares 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