Shares of cement maker Cemex soared nearly 25 percent on Thursday before trading was halted. Prices held about 10 percent higher on the day at $4.08 after trading resumed.
The activity resulted from a combination of Cemex’s earnings announcement Wednesday and the news Thursday that European leaders had reached a deal to boost the region’s bailout fund, where Cemex has several operations.
Mexico’s nationalized cement company posted profits of $3.9 billion, a 5-percent increase on the year. Pre-tax earnings from operations were $658 million, up 1 percent.
“This is the fourth consecutive quarter of top-line growth in our results,” Executive Vice President Fernando A. González said in a statement. “We also saw stable consolidated pricing on a quarter-on-quarter basis in local-currency terms. We are particularly pleased with the quarterly performance of our operations in the Northern Europe and the South, Central American and Caribbean regions.”
The quarter saw higher net sales in Northern Europe, the United Sates, South and Central America and the Caribbean. Road construction and other infrastructure projects – and the housing sector – drove demand in most markets. Operating income increased 7 percent to $305 million.
Cemex holds two back-to-back federal permits to mine 56 million tons of sand and gravel in the Soledad Canyon area of the Santa Clarita Valley. The company has not yet commenced mining operations locally.