CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE: CX), announced today that
consolidated net sales reached US$3.4 billion during the first
quarter of 2015, an increase of 7% on a like-to-like basis for the
ongoing operations and adjusting for currency fluctuations, versus
the comparable period in 2014. Operating EBITDA increased by 6%
during the quarter to US$569 million versus the same period in
2014. On a like-to-like basis, operating EBITDA increased by 14% in
the same period.
CEMEX’s Consolidated First-Quarter 2015
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 Asia region.
- On a like-to-like basis, operating
earnings before other expenses, net, in the first quarter increased
by 33%, to US$335 million.
- Operating EBITDA increased during the
quarter by 6% and, on a like-to-like basis, by 14% to US$569
million.
- Operating EBITDA margin grew by 1.8
percentage points on a year-over-year basis reaching 16.7%.
- Reporting a narrower controlling
interest net loss of US$149 million during the first quarter of
2015 from a loss of US$293 million in the same period last
year.
- Free cash flow after maintenance
capital expenditures for the quarter was negative US$281 million,
compared with negative US$454 million in the same quarter of
2014.
Fernando A. Gonzalez, Chief Executive Officer of CEMEX, said,
“We are pleased with our first-quarter results. Our net sales
increased by 7% while operating EBITDA improved by 14%, on a
like-to-like basis. EBITDA generation was the highest since 2008,
despite adverse currency fluctuations. EBITDA margin expanded by
1.8 percentage points.
We are encouraged by the performance of our operations in
Mexico, where first-quarter cement volumes grew by 13%, reaching
the highest level in six years. This quarter, on top of the
sustained increase in our volumes to the industrial-and-commercial
and formal residential sectors, we also saw growth in the
infrastructure and informal residential sectors. Cement demand from
the infrastructure sector grew by 6%, marking an inflection point
driven by increased public-works spending, while demand from the
informal residential sector grew by 11% as a result of higher
consumer confidence due to improvements in employment, disposable
income and remittances.”
Consolidated Corporate Results
During the first quarter of 2015, controlling interest net
income was a loss of US$149 million, an improvement over a loss of
US$293 million in the same period last year.
Total debt plus perpetual notes increased by US$417 million
during the quarter.
Geographical Markets First-Quarter 2015
Highlights
Net sales in our operations in Mexico increased 4% in the
first quarter of 2015 to US$766 million, compared with US$ 737
million in the first quarter of 2014. Operating EBITDA increased by
4% to US$262 million versus the same period of last year.
CEMEX’s operations in the United States reported net
sales of US$868 million in the first quarter of 2015, up 10% from
the same period in 2014. Operating EBITDA increased to US$64
million in the quarter, versus US$28 million in the same quarter of
2014.
In Northern Europe, net sales for the first quarter of
2015 decreased 23% to US$701 million, compared with US$912 million
in the first quarter of 2014. Operating EBITDA was US$36 million
for the quarter, versus US$13 million the same period of last year.
On a like-to-like basis for the ongoing operations and adjusting
for currency fluctuations, net sales remained flat and Operating
EBITDA increased 80%, versus the same period of last year.
First-quarter net sales in the Mediterranean region were
US$375 million, 9% lower compared with US$412 million during the
first quarter of 2014. Operating EBITDA decreased 11% to US$73
million for the quarter versus the comparable period in 2014. On a
like-to-like basis for the ongoing operations and adjusting for
currency fluctuations, net sales increased 2% and Operating EBITDA
decreased 3%, in the same period.
CEMEX’s operations in South, Central America and the
Caribbean reported net sales of US$468 million during the first
quarter of 2015, representing a decrease of 13% over the same
period of 2014. Operating EBITDA decreased 21% to US$148 million in
the first quarter of 2015, from US$187 million in the first quarter
of 2014.
Operations in Asia reported a 13% increase in net sales
for the first quarter of 2015, to US$164 million, versus the first
quarter of 2014, and operating EBITDA for the quarter was US$37
million, up 43% 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.
CEMEXMedia 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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