Cemex Predicts $ 100 Million EBITDA Impact Due to Supply Chain Problems and Delays
MEXICO CITY (Reuters) – Supply chain issues, project delays and currency effects are among the factors that could affect Mexican concrete giant Cemex’s third-quarter earnings of around $ 100 million, a declared its general manager on Thursday.
The company will release its third quarter results at the end of the month with more detailed information on the impact on earnings before interest, taxes, depreciation and amortization (EBITDA), CEO Fernando Gonzalez said in an investor presentation .
“We believe on a preliminary basis… that all of these variables can impact our EBITDA by an amount of approximately $ 100 million,” Gonzalez said.
He added that the company was responding by raising prices while aiming to delay costs and some investments.
“We are raising prices a lot more frequently,” Gonzalez said.
Jaime Muguiro, president of Cemex’s US operations, said the company will increase US prices by double digits throughout the coming year, in part to offset rising energy and shipping costs.
He praised a $ 1 trillion bipartisan infrastructure bill being considered by U.S. lawmakers, saying the $ 550 billion increase in funding for projects such as bridges, highways and transport would have a positive impact on demand.
Cemex also plans to spend $ 410 million on capital spending in the United States, one of its key markets, over the next three to four years, Muguiro said.
(Reporting by Daina Beth Solomon and Cassandra Garrison, editing by Marguerita Choy)