CEMEX Reports Flat Operating EBITDA Adjusted for Seasonal Effects During the First Quarter of 2018
April 26 2018 - 6:15AM
Business Wire
- Operating EBITDA during 1Q18, adjusted
for fewer business days and an inventory costing-variation effect,
remained flat on a year-over-year basis.
- Adverse weather conditions in Europe
and the U.S. also affected volumes for our products and EBITDA
generation during 1Q18.
- Operating EBITDA decreased by 4% during
the first quarter of 2018 to US$535 million versus the same period
in 2017.
CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE:CX), announced today that
consolidated net sales increased by 8% during the first quarter of
2018 to US$3.4 billion versus the comparable period in 2017.
CEMEX’s Consolidated First-Quarter 2018
Financial and Operational Highlights
- The increase in quarterly consolidated
net sales was due to higher prices of our products, in local
currency terms in Mexico, the U.S. and our Europe and Asia, Middle
East and Africa regions, as well as higher volumes in our U.S. and
our Asia, Middle East & Africa regions.
- Operating earnings before other
expenses, net, in the first quarter decreased by 5%, to US$332
million.
- Controlling interest net income during
the quarter was US$26 million from an income of US$336 million in
the same period of 2017.
- Operating EBITDA decreased by 4% during
the quarter compared to the same period in 2017, to US$535
million.
- Operating EBITDA margin during the
quarter decreased to 15.8% from 17.7% in the same period of
2017.
- Free cash flow after maintenance
capital expenditures for the quarter decreased by 1% to negative
US$154 million, compared to the same quarter of 2017.
Fernando A. Gonzalez, Chief Executive Officer of CEMEX, said,
“The first quarter of 2018 was characterized by solid operating
results with good consolidated daily volumes and improved pricing
performance, both sequentially and on a year-over-year basis.
However, our EBITDA generation during the quarter was affected by
seasonal effects, including adverse weather in our European and
U.S. operations, fewer business days and an inventory
costing-variation effect. We expect the impact of the fewer
business days and the inventory effect to revert in upcoming months
while we should recover most of the pent-up demand caused by
adverse weather to be recovered during the rest of the year.
“For the rest of 2018, we expect favorable consolidated volumes
and improving pricing dynamics in most of our markets. This,
together with an expected moderation in our energy cost increases
and our initiatives to contain other costs, should translate into
increased operating EBITDA generation for the full year.”
Consolidated Corporate Results
During the first quarter of 2018, controlling interest net
income was US$26 million, versus an income of US$336 million in the
same period last year.
Total debt plus perpetual notes increased by US$3 million during
the quarter.
Geographical Markets First-Quarter 2018
Highlights
Net sales in our operations in Mexico increased 10% in
the first quarter of 2018 to US$800 million, compared with US$725
million in the first quarter of 2017. Operating EBITDA increased by
12% to US$299 million in the quarter, versus the same period of
last year.
CEMEX’s operations in the United States reported net
sales of US$856 million in the first quarter of 2018, an increase
of 7% on a like-to-like basis from the same period in 2017.
Operating EBITDA decreased by 4% on a like-to-like basis to US$109
million versus the same quarter of 2017.
CEMEX’s operations in South, Central America and the
Caribbean reported net sales of US$464 million during the first
quarter of 2018, representing a decrease of 3% over the same period
of 2017. Operating EBITDA decreased by 21% to US$105 million in the
first quarter of 2018, from US$133 million in the same quarter of
2017.
In Europe, net sales for the first quarter of 2018
increased by 9% to US$805 million, compared with US$737 million in
the first quarter of 2017. Operating EBITDA was US$15 million for
the quarter, 52% lower than the same period last year.
Operations in Asia, Middle East and Africa reported a 15%
increase in net sales for the first quarter of 2018, to US$375
million, versus the same quarter of 2017. Operating EBITDA for the
quarter was US$62 million, 3% lower than 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. 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: https://www.businesswire.com/news/home/20180426005588/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 Relations:Lucy Rodriguez, +1
212-317-6007ir@cemex.com
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