- Operating EBITDA during the second
quarter increased by 4% on a like-to-like basis versus the
comparable period of 2017.
- Net income increased 32% on a
year-over-year basis, reaching US$382 million during the second
quarter.
- “A Stronger CEMEX” plan announced to
accelerate company’s path to investment grade and deliver increased
shareholder value.
CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE:CX), announced today that,
on a like-to-like basis for the ongoing operations and adjusting
for currency fluctuations, consolidated net sales increased by 7%
during the second quarter of 2018 to US$3.8 billion versus the
comparable period in 2017. Operating EBITDA on a like-to-like basis
increased by 4% during the second quarter of 2018 to US$714 million
versus the comparable period in 2017.
CEMEX’s Consolidated Second-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 all of our regions, as well as higher volumes in
Mexico, the U.S., and our Europe and Asia, Middle East & Africa
regions.
- Operating earnings before other
expenses, net, in the second quarter increased by 8%, to US$504
million on a like-to-like basis.
- Controlling interest net income during
the quarter was US$382 million from an income of US$288 million in
the same period of 2017.
- Operating EBITDA on a like-to-like
basis increased by 4% during the quarter compared to the same
period in 2017, to US$714 million.
- Operating EBITDA margin during the
quarter decreased to 18.8% from 19.5% in the same period of
2017.
- Free cash flow after maintenance
capital expenditures for the quarter decreased by 26% to negative
US$260 million, compared to the same quarter of 2017.
Fernando A. Gonzalez, Chief Executive Officer of CEMEX, said,
“We are encouraged by the very favorable volume dynamics we saw in
most of our portfolio during the quarter, with improvements in
pricing which should translate into higher profitability during the
second half of the year. Our operations in the U.S. and Europe
indicate a strong sequential growth in volumes resulting from
strong demand and pent-up activity after adverse weather conditions
in the first quarter, as well as improved pricing dynamics. In
Mexico, we are pleased with the year-over-year, double-digit growth
in ready-mix and aggregates volumes and high-single-digit increase
in prices. In addition, in our Asia, Middle East and Africa region,
we saw a high-single-digit growth in cement volumes in the
Philippines and Egypt with favorable sequential pricing
dynamics.
“Our net income increased by 32% on a year-over-year basis,
reaching US$382 million during the quarter. In addition, our total
debt plus perpetual notes declined by US$462 million during the
quarter, and by US$6.6 billion since the end of 2013.
“With the objective of accelerating our path to investment grade
and enhancing total shareholder return, today we are announcing «A
Stronger CEMEX», a plan designed to reposition our portfolio toward
higher growth. During the next 2.5 years, we will work to optimize
our portfolio by focusing on markets with the greatest long-term
growth potential and selling between US$1.5 and 2 billion of
assets. We will also implement actions to achieve US$150 million in
cost savings as an opportunity to continue improving our
profitability. Furthermore, we will reduce our total debt by US$3.5
billion by the end of 2020, and we will return capital to our
shareholders through an annual cash dividend starting with US$150
million in 2019.”
Consolidated Corporate Results
During the second quarter of 2018, controlling interest net
income was US$382 million, versus an income of US$288 million in
the same period last year.
Total debt plus perpetual notes decreased by US$462 million
during the quarter.
Geographical Markets Second-Quarter 2018
Highlights
Net sales in our operations in Mexico, on a like-to-like
basis, increased 13% in the second quarter of 2018 to US$867
million. Operating EBITDA, on a like-to-like basis increased by 8%
to US$311 million in the quarter, versus the same period of last
year.
CEMEX’s operations in the United States reported net
sales of US$989 million in the second quarter of 2018, an increase
of 9% on a like-to-like basis from the same period in 2017.
Operating EBITDA increased by 11% on a like-to-like basis to US$189
million versus the same quarter of 2017.
CEMEX’s operations in South, Central America and the
Caribbean reported net sales of US$461 million during the
second quarter of 2018, remaining flat on a like-to-like basis over
the same period of 2017. Operating EBITDA decreased by 9% to US$110
million in the second quarter of 2018, from US$120 million in the
same quarter of 2017.
In Europe, net sales for the second quarter of 2018
increased by 6% on a like-to-like basis to US$1,040 million from
the second quarter of 2017. Operating EBITDA was US$121 million for
the quarter, 5% higher than the same period last year on a
like-to-like basis.
Operations in Asia, Middle East and Africa reported a 10%
increase in net sales for the second quarter of 2018, to US$353
million, versus the same quarter of 2017 on a like-to-like basis.
Operating EBITDA for the quarter was US$52 million, 8% higher on a
like-to-like basis 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, including the objectives
under the “A Stronger CEMEX” plan, 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. Readers are urged to
read this press release and carefully consider the risks,
uncertainties and other factors that affect CEMEX’s business. The
information contained in this press release is subject to change
without notice, and CEMEX is not obligated to publicly update or
revise forward-looking statements. Readers should review future
reports filed by CEMEX with the U.S. Securities and Exchange
Commission.
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/20180726005307/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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