(Rewrites first paragraph, adds share movements)
MEXICO CITY, July 18 Mexico's Cemex, one of the
world's largest cement companies, on Friday reported its first
quarterly profit since the financial crisis in 2009, but its
core profit missed analysts' expectations as domestic sales
The company reported an unexpected profit of $76 million,
mostly driven by a $77 million gain from a derivative position
tied to the company's own share price. Cemex
shares rose 9.5 percent in the second quarter.
But the company said its core profit, or earnings before
interest, taxes, depreciation and amortization (EBITDA), was
only $737 million, up from $730 million in the year-earlier
period but below analysts' estimates of $768 million.
Cemex shares fell more than 2 percent on Mexico's stock
exchange before paring losses. They were last trading up about 1
percent at 17 pesos.
Net sales totaled $4.2 billion, up 4 percent from the
April-June period last year, helped by higher prices and a
pick-up in sales volumes in the United States, Mediterranean,
South and Central America and in the Caribbean and Asia.
U.S. sales rose 10 percent to $957 million, while sales in
the Mediterranean were up 12 percent to $449 million from the
But sales in Mexico, which account for more than one-third
of Cemex's total revenue, fell 4 percent, reflecting the weak
economic environment in Latin America's second-largest economy.
Cemex introduced a new executive team in May after the
sudden death of its chief executive officer, Lorenzo Zambrano.
The cement maker, which took on billions in debt to fund an
aggressive expansion on five continents under Zambrano, is still
chafing under about $17 billion in debt. The new chairman,
Rogelio Zambrano Lozano, a cousin of the late Cemex CEO, has
said the company was aiming to regain its investment-grade
Fernando Gonzalez, the new CEO, has also said Cemex's
priority was to reduce leverage, although the company will still
consider opportunities as the cement industry consolidates.
(Reporting by Elinor Comlay; Editing by Franklin Paul, Jeffrey
Benkoe and Paul Simao)