CEMEX reported today an increase in net sales for FY17 to US$3.1 billion, increasing 8 percent compared to US$2.87 billion FY16. Net sales for 4Q17 were US$781 million compared to US$701 million in 4Q16. The gross profit for Mexico was US$1.86 billion, a 10 percent boost from the US$1.5 billion FY16.
The company’s FY17 performance was enhanced mainly due to the reconstruction activity from the earthquakes in Sept. 2017, causing a sequential improvement in CEMEX’s market position. Likewise, the positive dynamics of the industrial and commercial sector with the construction of commercial and residential real estate favored the company.
The consumption volumes of the three main products suffered in Mexico. The FY16 decrease for cement was 4 percent while it increased by 8 percent between 3Q17 and 4Q17. Concrete and aggregates volumes also dropped 3 percent in FY17.
The global net sales FY17 were US$13.68 billion, increasing 2 percent compared to US$13.35 billion FY16. Conversely, the global total gross profit decreased 2 percent, FY16 to US$4.69 billion FY17 from US$4.78billion. In 2018, the company expects an increase of consolidated volumes of 2 percent for cement and aggregates and 4 percent for concrete.
“2017 was a challenging year, but or two largest markets, representing 60 percent of our portfolio, performed well,” said Fernando Gonzalez, CEMEX’s CEO. “The growth outlook for 2018 is the best we have seen in the past six years and we intend to take full advantage of that momentum,” he added.