In 2025, the Mexican cement company will focus on growth through small and medium-sized acquisitions, mainly in the United States.
Mexican cement maker Cemex on Thursday reported fourth-quarter net profit as price increases helped offset a sales decline, and it also launched a savings program aimed at boosting profits by $350 million by 2027.
Cemex's net profit for the quarter reached $48.31 million, but missed the $91.29 million estimate of analysts polled by LSEG, as sales fell 5% year-on-year to $3.81 billion.
The cement and concrete maker's volumes fell across nearly all sectors, with Cemex citing weaker demand in its key markets, Mexico and the United States.
Volumes in Mexico fell following the country's mid-year elections, Cemex said. In the United States, operations were hit by a series of hurricanes and a freeze in Texas, which reduced profits from its core business by about $38 million, according to the company.
Cemex was optimistic about this year's volumes in the United States in infrastructure and manufacturing projects, while Mexico will likely continue to face headwinds in the first half.
In a statement accompanying its earnings report, Cemex announced the launch of a cost-cutting program designed to add $350 million to the profits of its core business by 2027.
The company plans to achieve this by streamlining operations, improving efficiency and leveraging digital technology, although it did not provide further details.
The program is expected to contribute $150 million to earnings this year, with further increases thereafter, while providing savings to the free cash flow line, according to the company.
Starting this year, Cemex will invest in "growth through small and medium-sized acquisitions, primarily in the United States, additional deleveraging and development of its shareholder return programs," Chief Executive Fernando Gonzalez said.
Cemex has abandoned a number of non-core businesses to focus on the US market. Last year it sold its operations in the Philippines, Guatemala and the Dominican Republic.
