CEMEX’s Net Income Grows 72% During the First Nine Months of 2017
October 26 2017 - 6:15AM
Business Wire
- Net income reached U.S.$916 million in
the first nine months of 2017, an increase of 72% compared to the
same period last year. This is the highest net income for this
period since almost 10 years.
- Total debt plus perpetual notes
declined by U.S.$1.5 billion year-to-date September.
CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE:CX), announced today that
consolidated net sales reached U.S.$3.5 billion during the third
quarter of 2017, representing an increase of 2%, or an increase of
1% on a like-to-like basis for the ongoing operations and adjusting
for currency fluctuations, versus the comparable period in 2016.
Operating EBITDA decreased by 8% during the quarter to U.S.$702
million versus the same period in 2016.
CEMEX’s Consolidated Third-Quarter 2017
Financial and Operational Highlights
- The increase in consolidated net sales
on a like-to-like basis was due to higher prices for our products
in Mexico and the U.S., as well as higher cement volumes in the
U.S., Europe, and Asia Middle East and Africa regions.
- Operating earnings before other
expenses, net, in the third quarter decreased by 9%, to U.S.$494
million.
- Controlling interest net income during
the quarter improved to U.S.$289 million from an income of U.S.$286
million in the same period last year.
- Operating EBITDA decreased during the
quarter by 8% on a like-to-like basis to U.S.$702 million.
- Operating EBITDA margin decreased by
2.2 percentage points on a year-over-year basis reaching 19.8%,
reflecting in part higher energy and freight costs, increase costs
in raw materials in some of our ready-mix operations, as well as
the impact of lower volumes.
- Free cash flow after maintenance
capital expenditures for the quarter was U.S.$435 million, compared
with U.S.$548 million in the same quarter of 2016. The conversion
rate of EBITDA into free cash flow after maintenance capex during
the quarter reached 62 percent.
Fernando A. Gonzalez, CEMEX Chief Executive Officer, said, “We
are pleased with the double-digit, year-to-date growth in operating
EBITDA in our two largest markets: Mexico and the U.S., which
represent about two-thirds of our total EBITDA generation.
“In addition, our debt leverage during the quarter reached 3.98
times during the quarter. This is the first time that our leverage
ratio falls below 4 times since the third quarter of 2008. This
will continue contributing to further savings in our financial
expenses.
“I’m particularly encouraged with our net income reaching US$916
million during the first nine months of 2017. This is the highest
year-to-date net income in almost 10 years.”
Consolidated Corporate Results
During the third quarter of 2017, controlling interest net
income was U.S.$289 million, an improvement over U.S.$286 million
in the same period last year.
Total debt plus perpetual notes decreased by U.S.$369 million
during the quarter and by U.S.$1.5 billion during the first nine
months of the year.
Geographical Markets Third-Quarter 2017
Highlights
Net sales in our operations in Mexico increased 1% on a
like-to-like basis in the third quarter of 2017 to U.S.$782
million, compared with U.S.$732 million in the third quarter of
2016. Operating EBITDA increased by 7% on a like-to-like basis to
U.S.$302 million versus the same period of last year.
CEMEX’s operations in the United States reported net
sales of U.S.$916 million in the third quarter of 2017, an increase
of 2% on a like-to-like basis from the same period in 2016.
Operating EBITDA increased 1% on a like-to-like basis to U.S.$160
million in the quarter.
CEMEX’s operations in South, Central America and the
Caribbean reported net sales of U.S.$472 million during the
third quarter of 2017, representing a decrease of 6% on a
like-to-like basis over the same period of 2016. Operating EBITDA
decreased 28% on a like-to-like basis to U.S.$113 million in the
third quarter of 2017, from U.S.$145 million in the third quarter
of 2016.
In Europe, net sales for the third quarter of 2017
increased 2% on a like-to-like basis to U.S.$948 million, compared
with U.S.$887 million in the third quarter of 2016. Operating
EBITDA was U.S.$129 million for the quarter, 7% lower on a
like-to-like basis than the same period last year.
Operations in Africa, Middle East and Asia reported a 1%
increase in net sales on a like-to-like basis for the third quarter
of 2017, to U.S.$346 million, versus the third quarter of 2016, and
operating EBITDA for the quarter was U.S.$57 million, down 41% on a
like-to-like basis from the same period last year.
CEMEX is a global building materials company that provides high
quality products and reliable service to customers and communities
in more than 50 countries. Celebrating its 110th anniversary, CEMEX
has a rich history of improving the well-being of those it serves
through innovative building solutions, efficiency advancements, and
efforts to promote a sustainable future.
This press release contains forward-looking statements and
information that are necessarily subject to risks, uncertainties
and assumptions. Many factors could cause the actual results,
performance or achievements of CEMEX to be materially different
from those expressed or implied in this release, including, among
others, changes in general economic, political, governmental and
business conditions globally and in the countries in which CEMEX
does business, changes in interest rates, changes in inflation
rates, changes in exchange rates, the level of construction
generally, changes in cement demand and prices, changes in raw
material and energy prices, changes in business strategy and
various other factors. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described
herein. CEMEX assumes no obligation to update or correct the
information contained in this press release.
Operating EBITDA is defined as operating income plus
depreciation and operating amortization. Free Cash Flow is defined
as Operating EBITDA minus net interest expense, maintenance and
expansion capital expenditures, change in working capital, taxes
paid, and other cash items (net other expenses less proceeds from
the disposal of obsolete and/or substantially depleted operating
fixed assets that are no longer in operation). Net debt is defined
as total debt minus the fair value of cross-currency swaps
associated with debt minus cash and cash equivalents. The
Consolidated Funded Debt to Operating EBITDA ratio is calculated by
dividing Consolidated Funded Debt at the end of the quarter by
Operating EBITDA for the last twelve months. All of the above items
are presented under the guidance of International Financial
Reporting Standards as issued by the International Accounting
Standards Board. Operating EBITDA and Free Cash Flow (as defined
above) are presented herein because CEMEX believes that they are
widely accepted as financial indicators of CEMEX's ability to
internally fund capital expenditures and service or incur debt.
Operating EBITDA and Free Cash Flow should not be considered as
indicators of CEMEX's financial performance, as alternatives to
cash flow, as measures of liquidity or as being comparable to other
similarly titled measures of other companies.
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version on businesswire.com: http://www.businesswire.com/news/home/20171026005586/en/
CEMEX, S.A.B. de C.V.Media Relations:Jorge Pérez, +52(81)
8888-4334mr@cemex.comorInvestor Relations:Eduardo Rendón, +52(81)
8888-4256ir@cemex.comorAnalyst RelationsLucy Rodriguez, +1
212-317-6007ir@cemex.com
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