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Cemex asks staff, executives to take reduced pay as coronavirus hits demand - Metro US

Cemex asks staff, executives to take reduced pay as coronavirus hits demand

FILE PHOTO: Logo of Mexican cement company CEMEX is pictured in Monterrey

MEXICO CITY (Reuters) – Mexican cement maker Cemex said on Wednesday it had asked employees to voluntarily defer payment of 10% of their salaries for three months, part of a raft of measures to combat the impact of coronavirus that include the scrapping of its 2020 dividend.

Members of its senior management team have been asked to give up 15% of their pay for the period which starts May 1, the company said in a statement, adding that Cemex’s board chairman, CEO and other top executives have agreed to give up 25% of their salaries and fees over the 90 days.

Cemex said it would also reduce or suspend investments unrelated to the pandemic in addition to trimming inventory in all markets, in line with weaker demand.

“Cemex anticipates that construction activity will be impacted for some time in most markets where Cemex operates,” it said.

In addition to not paying a dividend, the Monterrey-based company added it is suspending its share repurchase program for the rest of the year.

Late last month, Cemex said it would increase its general debt levels and open up lines of credit to tackle the difficulties presented by the spread of coronavirus. The company had previously been waging a campaign to reduce its debt to regain an investment-grade rating.

(Reporting by Miguel Angel Gutierrez, Abraham Gonzalez and Julia Love; Editing by Edwina Gibbs)

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