CEMEX Reports Second-Quarter 2015 Results
July 22 2015 - 7:30AM
Business Wire
- Controlling interest net income during
the quarter increased 50% on a year-over-year basis and was the
highest since the third quarter of 2009
CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE: CX), announced today that
consolidated net sales reached US$3.8 billion during the second
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 increased by 1%
during the quarter to US$744 million versus the same period in
2014. On a like-to-like basis, operating EBITDA increased by 13% in
the same period.
CEMEX’s Consolidated Second-Quarter 2015
Financial and Operational Highlights
- The increase in consolidated net sales
on a like-to-like basis was due to higher prices in our products,
in local currency terms, in most of our operations, as well as
improved volumes in most of our products in Mexico, the U.S., and
our Northern Europe and Asia regions.
- Operating earnings before other
expenses, net, in the second quarter increased by 9%, to US$496
million.
- Operating EBITDA increased by 1% to
US$744 million or 13% on a like-to-like basis for the ongoing
operations and for foreign exchange fluctuations during the second
quarter of 2015 compared with the same period last year. The
increase was mainly due to higher contributions from the U.S.,
Mexico and Asia region.
- Operating EBITDA margin grew by 1.7
percentage points on a year-over-year basis reaching 19.4%.
- Free cash flow after maintenance
capital expenditures for the quarter was US$102 million, compared
with US$63 million in the same quarter of 2014.
Fernando A. Gonzalez, Chief Executive Officer, said, “We are
pleased with our results. Our controlling interest net income
during the quarter was the highest in six years. In addition, our
operating EBITDA grew by 13% on a like-to-like basis. This is the
third quarter with double-digit, like-to-like growth in EBITDA.
On the financing side, we are pleased to announce that as of
today we have commitments from 19 financial institutions to fully
repay approximately US$1.94 billion outstanding under our
Facilities Agreement maturing in February 2017. The new debt is
expected to have a final amortization in 2020 and benefit from a
lower interest rate, which is expected to initially represent
savings in our financial expense of close to US$20 million
annually.”
Consolidated Corporate Results
During the second quarter of 2015, controlling interest net
income was US$114 million, an improvement of 50% over an income of
US$76 million in the same period last year.
Total debt plus perpetual notes decreased by US$774 million
during the quarter.
Geographical Markets Second-Quarter 2015
Highlights
Net sales in our operations in Mexico decreased 9% in the
second quarter of 2015 to US$745 million, compared with US$816
million in the second quarter of 2014. Operating EBITDA increased
by 4% to US$256 million versus the same period of last year.
CEMEX’s operations in the United States reported net
sales of US$1,008 million in the second quarter of 2015, up 5% from
the same period in 2014. Operating EBITDA increased 31% to US$156
million in the second quarter of 2015, from US$119 million in the
same quarter of 2014.
In Northern Europe, net sales for the second quarter of
2015 decreased 21% to US$904 million, compared with US$1,138
million in the second quarter of 2014. Operating EBITDA was US$111
million for the quarter, 8% lower than the same period last
year.
Second-quarter net sales in the Mediterranean region were
US$409 million, 9% lower compared with US$449 million during the
second quarter of 2014. Operating EBITDA decreased 25% to US$75
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$517 million during the
second quarter of 2015, representing a decrease of 8% over the same
period of 2014. Operating EBITDA decreased 10% to US$160 million in
the second quarter of 2015, from US$178 million in the second
quarter of 2014.
Operations in Asia reported an 11% increase in net sales
for the second quarter of 2015, to US$177 million, versus the
second quarter of 2014, and operating EBITDA for the quarter was
US$45 million, up 34% 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, expected
refinancing of existing indebtedness 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/20150722005493/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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