Cemex UK profits fall sharply in 2007

Profits have collapsed in the last quarter of last year at the UK arm of Mexican aggregates giant Cemex.

Results just posted from the outfit’s Monterrey headquarters show a thumping 98% dive in earnings before interest, tax and amortisation to a paltry £306,000.

The slump comes after Contract Journal revealed a string of problems at the UK arm of Cemex’s concrete operations last summer due to a restructure.

The restructure slashed Cemex’s 22-strong network of sales and shipping centres down to just seven customer services centres, which led to shortages of concrete and prompted widespread complaints from contractors.

The UK arm of Cemex is not allowed to comment on the results but Hector Medina, executive vice president of planning and finance, said: “As we look forward to 2008, and with the integration of [Australian company] Rinker fully completed, we are focused on paying down debt and improving the efficiency of our operations."

The dwindling UK fourth quarter profits compare to a bumper £14m achieved a year ago and came despite UK sales edging up 6% to £249m in the final quarter of last year.

Overall, Cemex, which also has operations in Australia, North America and Spain, raised fourth quarter profits 18% to £552 million and 11% over the full year to £2.3bn.

Sales in the fourth quarter were up just under a third to £2.9bn and by 19% during the year to £10.9m.

By Steve Menary