Cement maker Cemex Holdings Philippines Inc. says net income in 2017 fell 65 percent on decreased sales and a decline in cement prices.
Cemex said in a disclosure to the stock exchange the 2017 net income declined to P658 million from P1.87 billion in 2016, while net sales dropped 10 percent to P21.78 billion from the previous year’s P24.28 billion.
The company said cement prices were down 10 percent in 2017 while volumes were flat after private sector spending slowed down in the second half of the year.
Cemex remains positive on the cement industry this year amid expansion plans.
“CHP remains positive on the prospects of Philippine construction, with expectations of sustained economic expansion in 2018. We remain focused on executing our capacity expansion plan in Solid Cement Plant. In addition, we are undertaking efforts to de-bottleneck our operations, achieve higher customer service levels, and reduce costs to drive growth for our business,” Cemex president and chief executive Ignacio Mijares said.
The company said the rollout of several big infrastructure projects this year and the massive rehabilitation of Marawi City would continue to boost infrastructure spending.
It said the recently implemented tax reform program would be supportive of investments on infrastructure and economic growth.
Cemex has allocated P3.7 billion for capital expenditures this year to support the expansion of the Solid Cement plant and de-bottlenecking of production lines and supply chain process, which could boost production by 500,000 metric tons.
The company said it recently obtained an environmental compliance certificate from the Department of Environment and Natural Resources for Solid Cement plant’s 1.5-million MT expansion plan.
Cemex said it also secured majority of its coal requirements for 2018 at lower than current spot rates. It expects domestic cement volume to grow by eight percent.
Cemex is one of the leading cement producers in the Philippines, based on annual installed capacity. It is an indirect subsidiary of CEMEX, S.A.B. de C.V., one of the largest cement companies in the world.
