What was Cemex's fourth-quarter core earnings performance?

Cemex reported a 16% increase in fourth-quarter core earnings, reaching $781 million.

How did Cemex's restructuring efforts impact its finances?

Restructuring efforts, including workforce reductions and asset sales, led to $48 million in severance costs and other charges, resulting in a net loss for the quarter.

What shareholder returns did Cemex propose?

Cemex proposed a 40% higher dividend payout and announced a $500 million share buyback program over the next three years.

Home / Business and Economy / Cemex Reports Earnings Dip, Eyes Shareholder Returns

Cemex Reports Earnings Dip, Eyes Shareholder Returns

5 Feb

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Summary

Fourth-quarter core earnings climbed 16% due to cost savings.
Company proposed a 40% dividend increase and a $500 million buyback.
Layoffs and asset sales led to a net loss despite sales growth.

Cemex Reports Earnings Dip, Eyes Shareholder Returns

Cemex, a prominent Mexican cement producer, announced a 16% increase in its fourth-quarter core earnings, reaching $781 million. This growth was primarily attributed to successful cost-cutting measures and elevated product prices. The company's strategic focus on core operations and capital return to shareholders, led by CEO Jaime Muguiro, is evident in the proposed 40% increase in dividends and a $500 million share buyback program over three years.

However, these positive financial indicators were overshadowed by a net loss for the quarter. This downturn was influenced by $48 million in severance costs from a 10% workforce reduction, charges related to the sale of its Panama unit, and write-downs on past acquisitions. Despite these one-off expenses, quarterly sales experienced an 11% rise to $4.18 billion, surpassing forecasts, with notable strength in the Mexico and EMEA regions.