(Reuters) -North America's top cement maker Cemex SAB (NYSE:CX) de CV posted on Thursday a net loss of $376 million in the third quarter, sending shares tumbling 4%, after the company was hit by supply chain disruptions and a spike in energy and transport costs.
The COVID-19 pandemic has crippled companies' ability to send and receive product parts and supplies across the world. Mexico's Cemex warned earlier this month that those snags coupled with inflation and foreign exchange effects could hit its full-year earnings by about $100 million.
Within minutes of market opening, Cemex's shares were down more than 4% to 13.25 pesos, their lowest level since late March. By 10:25 am Eastern Time, shares had pared losses slightly to 13.45 pesos to trade down 2.96%.
The company's net loss came even as Cemex reported a 10% rise in quarterly sales, helped by strong demand in the United States and Mexico.
In the United States, Cemex's biggest market, net sales rose 10% to $1.12 billion in the third quarter, while Mexico sales rose 20% to $868 million.
Cemex said it had implemented a second round of price increases in the reported quarter for its cement and ready-mix businesses in the United States, with prices up 2% from the prior three months.
"We are confident that our pricing strategy will more than compensate for the sudden runup in input cost inflation we have experienced," said Cemex's Chief Executive Fernando Gonzalez in a statement accompanying the earnings report.
But in a call with investors on Thursday morning, Gonzalez acknowledged the challenge posed by rising prices.
"There is not a silver bullet to deal with inflation," he said.