Cemex, North America's largest cement maker, said second-quarter profit dropped 27 per cent as construction slumped in most of its largest markets and debt costs rose.
Cemex, which controls Irish cement maker Readymix, said net income fell to $444 million, or 59 cents per American depositary receipt, from $611 million, or 83 cents, a year earlier, Cemex said in a statement.
Analysts had expected earnings of 73 cents per ADR.
Sales rose 29 per cent to $6.35 billion because of last year's $14.2 billion acquisition of Australia's Rinker Group.
Analysts, on average, estimated $6.3 billion in sales.
Cemex completed the purchase of Rinker, which generates more than 80 per cent of its sales in the US.
Costs have increased because of rising energy prices and higher interest on net debt, which jumped to $17.6 billion at the end of June from $4.05 billion a year ago.
Interest expense more than doubled to $232.9 million during the quarter from $111.3 million a year ago.
Profit was also hurt by a non-cash loss of $159 million on financial instruments, mostly related to yen interest rates, the company said. A year ago, the company recorded a loss on financial instruments of $44 million.
Readymix today appointed Derek O'Donnell as finance director to replace Sergio Martinez. Mr Martinez left the company to take up a new position at Cemex.
Mr O'Donnell, who has worked for Cemex since 1997, joined Readymix yesterday.