CEMEX Reports Third-Quarter 2015 Results
22 October 2015 - 9:45PM
Business Wire
CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE: CX), announced today that
consolidated net sales reached US$3.7 billion during the third
quarter of 2015, an increase of 5% on a like-to-like basis for the
ongoing operations and adjusting for currency fluctuations, versus
the comparable period in 2014. Operating EBITDA during the quarter
reached US$677 million, an increase of 5% on a like-to-like basis
versus the same period in 2014.
CEMEX’s Consolidated Third-Quarter 2015
Financial and Operational Highlights
- The increase in consolidated net sales
on a like-to-like basis was due to higher prices of our products in
local currency terms in most of our operations, as well as improved
volumes in most of our products in the U.S. and our Asia
region.
- Operating earnings before other
expenses, net, in the third quarter decreased by 8%, to US$439
million.
- Controlling interest net loss narrowed
to US$44 million during the third quarter from a loss of US$106
million in the same period last year.
- Operating EBITDA decreased by 10% to
US$677 million or increased by 5% on a like-to-like basis for the
ongoing operations and for foreign exchange fluctuations during the
third quarter of 2015, compared with the same period last year. The
increase on a like-to-like basis was mainly due to higher
contributions from Mexico, the U.S., as well as from our Northern
Europe and Asia regions.
- Operating EBITDA margin decreased by
0.2 percentage points on a year-over-year basis, reaching
18.5%.
- Free cash flow after maintenance
capital expenditures for the quarter was US$436 million, a 25%
increase compared to US$349 million in the same quarter of
2014.
Fernando A. Gonzalez, Chief Executive Officer, said: “Our
reported results reflect the unprecedented strength of the U.S.
dollar versus the currencies in most of our markets, which
intensified during the quarter. Despite this, we had favorable
operating results. Our quarterly sales and operating EBITDA
increased by 5%, on a like-to-like basis. While EBITDA margin was
relatively flat during the quarter, year-to-date EBITDA margin was
the highest since 2009. Our free cash flow after maintenance capex
also increased 25% during the quarter.”
“We are pleased with the results so far of our
value-before-volume strategy. Our year-to-date increase in
consolidated prices, adjusted for the impact of our variable costs
and freight rate increases, has offset slightly more than half of
the effect of foreign-exchange fluctuations.”
Consolidated Corporate Results
During the third quarter of 2015, controlling interest net loss
was US$44 million, an improvement of 58% over a loss of US$106
million in the same period last year.
Total debt plus perpetual notes decreased by US$353 million
during the quarter.
Geographical Markets Third-Quarter 2015
Highlights
Net sales in our operations in Mexico decreased by 17% in
the third quarter of 2015 to US$669 million, compared with US$803
million in the third quarter of 2014. Operating EBITDA decreased by
10% to US$220 million versus the same period of last year.
CEMEX’s operations in the United States reported net
sales of US$1,093 million in the third quarter of 2015, up 9% from
the same period in 2014. Operating EBITDA increased by 27% to
US$172 million in the quarter, versus US$136 million in the same
quarter of 2014.
In Northern Europe, net sales for the third quarter of
2015 decreased by 21% to US$829 million, compared with US$1,047
million in the third quarter of 2014. Operating EBITDA was US$114
million for the quarter, 15% lower than the same period last
year.
Third-quarter net sales in the Mediterranean region were
US$348 million, 5% lower compared with US$366 million during the
third quarter of 2014. Operating EBITDA decreased by 20% to US$59
million for the quarter versus the comparable period in 2014.
CEMEX’s operations in South, Central America and the
Caribbean reported net sales of US$476 million during the third
quarter of 2015, representing a decrease of 19% over the same
period of 2014. Operating EBITDA decreased to US$139 million in the
third quarter of 2015, from US$199 million in the third quarter of
2014.
Operations in Asia reported a 7% increase in net sales
for the third quarter of 2015, to US$162 million, versus the third
quarter of 2014, and operating EBITDA for the quarter was US$47
million, up 18% 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 throughout the world. CEMEX
has a rich history of improving the well-being of those it serves
through its efforts to pursue innovative industry solutions and
efficiency advancements and 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/20151022005460/en/
CEMEX, S.A.B. de C.V.Media RelationsJorge Pérez, +52(81)
8888-4334mr@cemex.comorInvestor RelationsEduardo Rendón,
+52(81) 8888-4256ir@cemex.comorAnalyst RelationsLucy
Rodriguez, +1-212-317-6007ir@cemex.com
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