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US Market Helps Cemex Build A Solid Second Quarter

(Photo courtesy of Cemex)
Workers at the Cemex Plant in Mesa collaborate on the company's reforestation initiative.

MEXICO CITY — Cemex is one of the largest cement manufacturers in the world, and its share in the U.S. market helped it build a solid second quarter this year.

Mexico and the United States were their top markets on the past quarter. According to their latest report, Cemex’s earnings before, taxes and interest are subtracted, grew by 6 percent to $771 million, and their quarterly net income increased 81 percent on a year-over-year.

Both are the highest in a second quarter since 2008.

Cemex was benefitted by better pricing and a higher demand of construction materials, mainly cement, which also resulted in strong sales.

In the U.S., Cemex’s income increased 6 percent and generated about $1.036 million of net sales between April and June.

“In the United States, we continued to see healthy demand, pricing traction and margin expansion during the second quarter on a year-over-year basis,” said Fernando González, CEO of Cemex.

The significant growth of single-family construction this year in the U.S. pushed a demand of higher volumes from Cemex, which also brought stronger job creation, low interest rates and high rents.

However, the multifamily segment, which includes residential buildings, still experiences a decline. 

“Housing permits for the U.S. are down 1 percent year-to-date June due again to a decline in the multifamily segment," González said. "Permits in three of our four key states—Florida, California and Arizona—continue to expand faster than the country as a whole.”

Another area that has slowed down its construction spending is the industrial and commercial sector.

However, according to Gonzales, the strong dynamics in the U.S. will continue supporting Cemex’s growth for the rest of 2016.

Cemex is a global building materials company established in more than 50 countries and celebrating its 110th anniversary this year.

Rodrigo Cervantes is KJZZ’s bureau chief in Mexico City, where he was born and raised. He has served as opinion writer, contributor and commentator for several media outlets and organizations in Mexico and the United States, including CNN, Georgia Public Broadcasting and Univisión. Cervantes previously worked as the business editor and editorial coordinator for El Norte, the leading newspaper in Monterrey and a publication of Grupo Reforma, Mexico’s premier news group. In Mexico City, Cervantes served in Reforma as a reporter, special correspondent, editor and special sections coordinator. Cervantes also held the editor position at MundoHispánico, a division of The Atlanta Journal-Constitution and Georgia’s oldest and largest Latino newspaper. He also participated as one of the first members of the Diversity Advisory Group for Cox Media. In 2012, Cervantes was appointed as fellow for the Leadership Program of The New York Times/Nieman Foundation for Journalism at Harvard, as well as for the "Líderes Digitales" program from the International Center for Journalists. In 2010, he was awarded with the Poynter-McCormick Leadership Fellowship. Cervantes graduated with honors in communication sciences and journalism from the Instituto Tecnológico de Monterrey (ITESM), Mexico City Campus. Later, he was granted the Fundación Carolina Scholarship from the Spanish government to obtain an MBA degree at San Pablo-CEU School of Business (Madrid). Other awards include: the Power 30 Under 30 Award for Professional and Community Excellence in Atlanta, the Outstanding Alumni Medal from ITESM, and several José Martí Awards for Journalism Excellence from the National Association of Hispanic Publications (NAHP). Cervantes enjoys music, books, travel, friendship, good mezcal and the occasional company of his guitar.