Displaying items by tag: Cemex

Mexico: Changes to Cemex’s regional management started on 1 April 2025 following the appointment of Jaime Muguiro as new group CEO. Jesus Gonzalez has been appointed as president of Cemex USA, Sergio Menendez as president of Cemex Mexico, Jose Antonio Cabrera as president of Cemex Europe, Middle East, and Africa and Alejandro Ramirez as president of Cemex South, Central America, and the Caribbean.

Jesús González joined Cemex in 1998 and has held several management positions, including Corporate Director of Strategic Planning, Vice President of Strategic Planning in Cemex USA, President of Cemex Central America, President of Cemex UK, Executive Vice President of Sustainability and Operations Development and, most recently, President of Cemex South, Central America and the Caribbean. He holds a master’s degree in naval engineering from the Polytechnic University of Madrid and a master’s of business administration (MBA) from IESE - University of Navarra, Barcelona.

Sergio Menéndez has worked for Cemex since 1993. Prominent roles he has held include Director of Planning and Logistics in Asia, Corporate Director of Commercial Development, President of Cemex Philippines, Vice President of Strategic Planning for the Europe, Middle East, Africa, and Asia region, President of Cemex Egypt, Vice President of Infrastructure Segment and Government Sales in Mexico, Vice President of Distribution Segment Sales in Mexico and most recently, President of Cemex Europe, Middle East, Africa and Asia. He holds an undergraduate degree in industrial engineering from the Instituto Tecnológico y de Estudios Superiores de Monterrey and an MBA from Stanford University.

José Antonio Cabrera joined Cemex in 2000 and started in cement operation roles. He has since worked as President for Cemex in Dominican Republic, Puerto Rico and Haiti, as well as Vice President of Strategic Planning for Cemex in the Asia, Middle East and Africa region. He holds an undergraduate degree in physics from La Laguna University in Spain and an MBA from the IE Business School.

Alejandro Ramírez has worked for Cemex since 2000 starting in strategic planning roles. He later became President for Cemex in Colombia & Peru, Dominican Republic, Caribbean, Costa Rica, TCL Group, Puerto Rico, Argentina and Thailand. He holds a degree in Industrial Engineering from the Tecnológico de Monterrey and an MBA from Wharton business school.

UK: Mark Grimshaw-Smith has been appointed as a non-executive director to its Board of Logistics UK. He currently works as the Rail and Sea Manager for Cemex UK. Other appointments to this board include Jamie Hartles, Rem Noormohamed and James Wroath.

Grimshaw-Smith has worked for over 40 years in the construction materials supply chain and logistics sector, covering all modes of transport. He has worked for Cemex for over 15 years, most recently as its Rail and Sea Manager. He helped to develop Cemex's global rail safety standards, representing Cemex’s Europe, the Middle East and Africa (EMEA) region. He is a graduate in economics from the University of Oxford and holds a master’s of business administration (MBA) from the University of Warwick.

Logistics UK is a trade association representing the logistics sector, including road, rail, sea, and air.

UK: Cemex has announced the construction of a mortar plant in Swindon, Wiltshire as part of its strategy to supply more alternative and sustainable materials to growing urban centres. The Mexico-based group said the plant will begin operations in the second half of 2025.

The new plant will produce Cemex's Vertua low-carbon mortars, with a CO2 footprint at least 30% lower than that of standard mortars. It will also feature a drying system designed to minimise heat consumption and significantly reduce fossil fuel consumption throughout the production process.

"As part of our growth strategy, we make strategic acquisitions and build new plants in advanced markets," said Fernando A Gonzalez, Cemex's CEO. "This strategically-located plant will enhance our production capacity in the country, advance our decarbonisation goals and allow us to offer a better experience to our customers in the region."

Poland: Cemex has signed an agreement with EDP Energia Poland to build solar installations at several of its sites, with a total capacity of over 14MW. The investment is part of its ‘Future in Action’ strategy to combat climate change.

New solar plants will be installed at Cemex's cement plants in Chełm, Rudniki, and Gdynia, as well as its ready-mix concrete plants in Mysłowice, Warsaw Annopol, Lublin, Szczecin, and Gdańsk. The concrete plant installations will begin operating in the second quarter of 2025, while the installations at the cement plants are scheduled to start generating power in the first quarter of 2026. EDP Energia Polska will install and manage the solar installations under a 15-year agreement, supplying renewable energy to Cemex facilities.

Cement producers based in North America and Europe reported stable revenues and growing earnings in 2024. Revenue growth at scale could be found in India and Sub-Saharan Africa. Notably, India-based UltraTech Cement’s sales volumes of cement surpassed those of Holcim’s. Yet, the European-headquartered multinationals were mostly happy due to increased earnings. Holcim lauded record performance in 2024, for example, and Heidelberg Materials reflected upon “a very good financial year.” This review of financial results looks at selected large heavy building materials companies, outside of China, that have released financial results so far.

Graph 1: Sales revenue from selected cement producers in 2023 and 2024. Source: Company reports. Note: Figures calculated for UltraTech Cement, consolidated data from Ambuja Cement used for Adani Cement.

Holcim’s net sales may have dropped on a direct basis from 2023 to 2024 but its focus is on earnings. Its recurring earnings before interest and taxation (EBIT) rose by 4% year-on-year to US$1.31bn in 2024 from US$1.26bn in 2023. And the changing nature of where its earnings come from in recent years has led to the impending spin-off of the US business, scheduled to occur by the end of the first half of 2025. The company will be called Amrize and will be listed on the New York Stock Exchange, with an additional listing on the SIX Swiss Exchange. By product line, sales were down for cement, ready-mixed concrete (RMX) and aggregates, but they were up for the group’s Solutions & Products division. Despite this earnings were up for all four product lines. By region sales fell in North America, Europe and Asia, Middle East & Africa. They rose in Latin America. For reference, North America and Europe are the group’s two biggest segments.

Heidelberg Materials’ sales revenue remained stable in 2024 on a direct basis, although it dipped slightly on a like-for-like comparison. Its result from current operations before depreciation and amortisation (RCOBD) grew by 6% to US$3.4bn. Geographically, revenue in Europe and Asia Pacific fell. RCOBD increased, notably, by 19% to US$4.80bn in North America. It grew everywhere else apart from Africa-Mediterranean-Western Asia. As is becoming customary for Heidelberg Materials, it made a point of highlighting its sustainability progress. This includes demonstrating progress towards its sustainable revenue target and reminding markets that the delivery of its first carbon captured net-zero cement evoZero product is planned during 2025. The group plans to release its 2024 full annual report at the end of March 2025.

Graph 2: Cement sales volumes from selected cement producers in 2023 and 2024. Source: Company reports. Note: Annualised sales volumes provided for CRH, figures calculated for UltraTech Cement.

CRH’s strength in North America gave it both rising revenues and earnings. Sales revenue from its Americas Materials Solutions division reported 5% growth to US$16.2bn in 2024. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) sprung up by 22% to US$3.75bn. Revenue growth was attributed to price increases and acquisitions. Earnings growth was pinned on growth across all regions, pricing, cost management, operational efficiency and gains on land asset sales. Despite this, reported volumes in the division were down in 2024. The group’s International Solutions division performed more in line with its competitors, with revenue down slightly but earnings up. Lastly, CRH’s annualised sales volumes of cement grew in 2024. This is likely primarily due to the group’s acquisition of assets in Australia.

Cemex had a tougher time of it in 2024, compared to the previous three companies, with both sales revenues and earnings down. Sales and earnings were down on a direct basis for each of its three main regions – Mexico, the US, and Europe, Middle East, and Africa - although the picture was better in Mexico on a like-for-like basis. Sales volumes of cement, RMX and aggregates were either static or down in each of these areas. In the US the group may have been unlucky as it took an earnings hit from four hurricanes and a deep freeze in Texas. Group earnings improved in the fourth quarter of 2024. In spite of this it introduced ‘Project Cutting Edge’ in February 2025, a three-year, US$350m cost saving exercise.

The first takeaway from UltraTech Cement’s performance in 2024 is that a second (mainly) national producer has overtaken the multinationals. This happened with several China-based cement producers over the last decade. Now it has occurred in India with Ultratech Cement. It reported sales volumes of 120Mt in the 2024 calendar year. Shifting to the Indian financial calendar, Ultratech Cement ‘s revenue rose slightly in the nine months to 31 December 2024 but its new profit fell by 19% year-on-year to US$458m. Local press has blamed this on weak price realisations despite sales volumes growing. At the same time its energy costs have fallen so far in its 2025 financial year. Adani Cement, meanwhile, reported strong growth in both revenue and earnings in the 12 months to 31 December 2024. It too is likely to become one of the world’s largest cement producers by sales volumes by 2030, outside of China, if it follows-through on its expansion targets.

Finally, Dangote Cement reminded us all what growth really looks like as the Nigerian market started to rebound. Sales revenue increased by 62% to US$2.39bn and EBITDA by 56% to US$591m. Despite high domestic interest rates in Nigeria the group managed to grow its sales volumes of cement. Elsewhere in Sub-Saharan Africa sales volumes declined a little due to bad weather conditions in Tanzania and election uncertainties in Senegal and South Africa.

The importance of the US market for many multinational cement producers continued in 2024. However, this reliance on one place can carry risks, as Cemex’s results seem to suggest. Another reminder of this occurred this week when the US government imposed 25% tariffs on Canada and Mexico. The Portland Cement Association said in a statement, “The US cement industry would like to work with the administration to address federal laws and regulations that prevent American cement companies from increasing production, making it necessary for the US to import some 20% of its total cement consumption annually - including from Canada and Mexico.” Elsewhere, markets are changing as mega-markets such as India and Sub-Saharan Africa unleash their potential. China-based Huaxin Cement, for example, may start to gain a place on international round-ups like this one in 2025 when it completes its acquisition of Lafarge Africa.

Colombia: Cemex is ‘exploring’ the possible sale of its business in Colombia, Bloomberg has reported.

Cemex previously delisted Spain-based Cemex Latam Holdings from the Colombian Stock Exchange in 2023.

Mexico: Cemex has announced that its CEO, Fernando Gonzalez, will retire after 35 years with the company. The company’s board of directors has appointed Jaime Muguiro, current head of US operations, to succeed him. The changes will be effective on 1 April 2025.

Mexico: Cemex has embarked upon a cost cutting exercise following a drop of sales volumes in 2024. Sales volumes of cement, ready-mixed concrete (RMX) and aggregates all fell in 2024. This in turn reduced sales revenue, despite higher prices and earnings. The group’s sales volumes of cement decreased by 2% year-on-year to 44.3Mt in 2024 from 45.2Mt in 2023. RMX sales volumes dropped by 6% to 44Mm³ from 46.8Mm³. Sales revenue and operating earnings before interest, taxation, depreciation and amortisation (EBITDA) dipped by 2% to US$16.2Bn and by 2% to US$3.08Bn respectively.

Sales and earnings rose on a like-for-like basis in Mexico and South, Central America and the Caribbean but fell elsewhere. In Mexico the group noted a strong first half of 2024 followed by a poor second half. In the US it reported a number of ‘extreme’ weather events. In Europe, Middle East, and Africa it said a recovery trend in earnings was observed in the second half of the year.

In response the company has launched ‘Project Cutting Edge,’ a three-year, US$350m saving programme intended to streamline operations, improve efficiency and further use of digital technology throughout the business. The initiative is anticipated to deliver US$150m in incremental EBITDA in 2025 and expected to reach a run-rate of US$350m by 2027.

Fernando A González, CEO of Cemex, said “With the recovery of our investment grade ratings, improved free cash flow generation and the execution of US$2.2bn in asset divestments, we can now pursue more aggressively our capital allocation priorities of growth through small to medium-sized acquisitions, primarily in the US, additional deleveraging, and building further on our shareholder return programs.”

Dominican Republic: Cementos Progreso Holdings has acquired Cemex’s operations in the Dominican Republic, as well as the company’s export business in Haiti. The deal was first announced in August 2024, and has now been completed, having met all legal requirements. The company said that it will retain the 500 existing staff, in order to continue ‘offering products and services of the highest quality.’ Cementos Progreso now operates in eight countries in Latin America and the Caribbean.

US: The US Department of Energy's (DOE) Office of Fossil Energy and Carbon Management has selected Cemex's Knoxville cement plant in Tennessee as the site for a carbon capture, removal and conversion test centre. The project is part of a US$101m initiative shared among five projects that aim to decarbonise cement plants and power facilities.

Cemex, in collaboration with the University of Illinois Urbana-Champaign (UIUC) and a coalition of US cement producers, will develop the conceptual design, business, technical and managerial frameworks for the test centre under Phase 1. Phase 2 will involve constructing and operating the centre to evaluate advanced carbon management systems.

Jaime Muguiro, president of Cemex US, said “While we are making steady progress, the cement industry has the opportunity to accelerate the pace of our decarbonisation even more. I am excited that our Knoxville cement plant has been selected as the host site for the carbon capture test centre. Through collaboration and continuous innovation with the University of Illinois and industry peers, Cemex is committed to advancing decarbonisation solutions.”