Carib Cement profit falls 1/3rd in third quarter, warns staff about El Niño

Caribbean Cement Company, majority-owned by Mexico based Cemex, sold more cement in the September quarter, but a planned shutdown of its kiln furnace pushed production costs higher, resulting in lower profit.

Revenue for the three months to September 30 rose 10.2 per cent to $8.89 billion, from $8.07 billion in the corresponding quarter of 2025. Net income fell 38.9 per cent over the same period, to $1.40 billion from $2.29 billion.

“This reduction was primarily attributable to increased maintenance activities associated with the planned annual maintenance, higher fuel-related costs, and elevated logistics and distribution costs arising from higher sales volumes,” Chairman Parris A. Lyew-Ayee and Director Jorge Martinez said in the directors’ statement accompanying the results.

Cost of sales climbed 52.2 per cent to $6.1 billion from $4.0 billion, outpacing revenue growth by a wide margin and cutting gross profit by almost a third to $2.78 billion from $4.05 billion.

Carib Cement booked insurance claim recoveries of approximately $197 million in the third quarter of 2025 and none in the latest period.

NINE-MONTH STRONG

Revenue for the nine months to September rose 12.5 per cent to $27.46 billion, and net income jumped 48 per cent to $7.15 billion from $4.83 billion. Earnings per share for the period reached $8.40, against $5.68 a year earlier.

“Despite these special quarterly conditions, Carib Cement’s year-to-date performance remained significantly ahead of the prior year, reflecting the strong results achieved during the first half of 2026 and the resilience of its operating model,” the directors said.

CASH NEARLY DOUBLED

Cash and cash equivalents reached $20.81 billion at September, up from $11.60 billion at the end of 2025, supported by operating cash flow of $9.76 billion over the nine months. Capital grew to $37.8 billion in September from $32.5 billion at December.

HEAT EXPOSURE

Carib Cement held a health and wellness session for employees during the quarter in response to elevated atmospheric temperatures linked to the El Niño weather phenomenon.

“The session addressed heat stress awareness, proper hydration, and the importance of adequate rest and respiratory protection, particularly in high-temperature and dusty working environments,” the directors said.

Workers received guidance on recognising the early signs of heat-related illness and on preventative measures. The company also reviewed signage across its quarries during the period and installed additional signs at the gypsum quarry, which the assessment identified as needing the most improvement.

Separately, the company recorded a 16 per cent reduction in water withdrawals, which it attributed to efficiencies from the $6.7-billion Debottleneck Project and described as equivalent to the annual water requirements of more than 1,700 people. The Debottleneck project was a $6.7-billion expansion of the kiln furnace that started in 2022 and finished in 2025.

It plans to install a cooling tower in 2027.

EXPORTS RESUME

Carib Cement resumed exports to The Bahamas in September and expects to begin shipments to the Cayman Islands, as it rebuilds a regional presence it had largely surrendered while it concentrated on domestic supply. The company has also increased storage capacity.

“The successful completion of the annual kiln maintenance programme is expected to support improved plant reliability, production stability and efficiency, positioning the company to respond effectively to market requirements in the coming periods,” the directors said.

business@gleanerjm.com