CEMEX Reports Fourth-Quarter and Full-Year 2014 Results
February 05 2015 - 7:30AM
Business Wire
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 5% during the fourth quarter of 2014 to approximately
US$3.8 billion and increased 6% for the full year to US$15.7
billion versus the comparable periods in 2013. Operating EBITDA on
a like-to-like basis increased by 16% during the fourth quarter of
2014 to US$701 million and increased 6% for the full year to US$2.7
billion versus 2013.
CEMEX’s Consolidated Fourth-Quarter and
Full-Year 2014 Financial and Operational Highlights
- The increase, on a like-to-like basis,
in consolidated net sales was due to higher prices of our products,
in local currency terms, in most of our operations, as well as
higher volumes in Mexico, the U.S., and our Mediterranean, South,
Central America and the Caribbean and Asia regions.
- On a like-to-like basis, operating
earnings before other expenses, net, in the fourth quarter
increased by 31%, to U.S.$443 million and increased 13%, to
U.S.$1.7 billion, for the full year 2014.
- Reporting a narrower controlling
interest net loss of U.S.$178 million during the fourth quarter of
2014 versus a loss of U.S.$255 million in the same period last
year. For the full year 2014 controlling interest net loss improved
to U.S.$507 million from a loss of U.S.$843 million in 2013.
- Operating EBITDA on a like-to-like
basis increased by 16% during the quarter to U.S.$701. On a
like-to-like basis, full-year operating EBITDA increased by 6% to
U.S.$2.7 billion.
- Operating EBITDA margin grew by 1.7
percentage points on a year-over-year basis reaching 18.3%. For the
full year 2014, operating EBITDA margin remained flat at 17.4%
versus the comparable period in 2013.
- Free cash flow after maintenance
capital expenditures for the quarter was U.S.$421 million, compared
with U.S.$216 million in the same quarter of 2013.
Fernando A. Gonzalez, Chief Executive Officer, said: “During
2014, we reported a narrower controlling interest net loss for the
third consecutive year and 40% lower than in 2013. Our operating
EBITDA on a like-to-like basis grew by 16% during the fourth
quarter of 2014 and by 6% for the full year 2014 versus the
comparable periods in 2013. We are pleased with the growth in
volumes and local-currency prices for our products in most of our
regions, reflecting the continued positive outcome of our
value-before-volume strategy.
We generated the highest quarterly and annual free cash flow
since the second quarter of 2009 and the full year 2010,
respectively. We continue to improve our debt maturity profile and
interest expense through our debt reduction of close to U.S.$1.2
billion and our refinancing activities of approximately U.S.$5
billion during the year. We are encouraged with the way our credit
continues to re-rate.”
Consolidated Corporate Results
During the fourth quarter of 2014, controlling interest net
income was a loss of U.S.$178 million, an improvement over a loss
of U.S.$255 million in the same period last year.
Total debt plus perpetual notes decreased by U.S.$658 million
during the quarter.
Geographical Markets Fourth-Quarter 2014
Highlights
Net sales in our operations in Mexico increased 5% in the
fourth quarter of 2014 to U.S.$827 million, compared with U.S.$785
million in the fourth quarter of 2013. Operating EBITDA increased
by 3% to U.S.$255 million versus the same period of last year.
CEMEX’s operations in the United States reported net
sales of U.S.$923 million in the fourth quarter of 2014, up 13%
from the same period in 2013. Operating EBITDA increased 78% to
U.S.$138 million in the quarter, versus U.S.$77 million in the same
quarter of 2013.
In Northern Europe, net sales for the fourth quarter of
2014 decreased 9% to U.S.$971 million, compared with U.S.$1.1
billion in the fourth quarter of 2013. Operating EBITDA was U.S.$87
million for the quarter, 9% higher than the same period last
year.
Fourth-quarter net sales in the Mediterranean region were
U.S.$387 million, 2% lower compared with U.S.$394 million during
the fourth quarter of 2013. Operating EBITDA decreased 9% to
U.S.$71 million for the quarter versus the comparable period in
2013.
CEMEX’s operations in South, Central America and the
Caribbean reported net sales of U.S.$514 million during the
fourth quarter of 2014, representing a decrease of 11% over the
same period of 2013. Operating EBITDA decreased 9% to U.S.$165
million in the fourth quarter of 2014, from U.S.$183 million in the
fourth quarter of 2013.
Operations in Asia reported a 16% increase in net sales
for the fourth quarter of 2014, to U.S.$155 million, versus the
fourth quarter of 2013, and operating EBITDA for the quarter was
U.S.$44 million, up 37% 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.
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:Luis Garza, +52(81) 8888-4136ir@cemex.com
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