CEMEX Reports Fourth-Quarter and Full-Year 2015 Results
February 04 2016 - 6:15AM
Business Wire
- CEMEX reported positive net income for
the first time in 6 years, reaching US$75 million.
- Free cash flow after maintenance
capital expenditures more than doubled during the year, reaching
US$881 million, from US$399 million in 2014.
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 2% during the fourth quarter of 2015 to US$3.4
billion, and increased 5% for the full year 2015 to US$14.1 billion
versus the comparable periods in 2014. Operating EBITDA on a
like-to-like basis increased by 7% during the fourth quarter to
US$663 million, and increased 9% for the full year to US$2.6
billion versus the comparable periods of 2014.
CEMEX’s Consolidated Fourth-Quarter and
Full-Year 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
higher volumes in the U.S., and our Mediterranean and Asia
regions.
- On a like-to-like basis, operating
earnings before other expenses, net, in the fourth quarter
increased by 11% to US$410 million and in the full year increased
by 17% to US$1.7 billion versus the comparable periods in
2014.
- Controlling interest net income
improved to US$144 million during the fourth quarter of 2015 from a
loss of US$178 million in the same period last year. Also,
controlling interest net income improved during the full year to
US$75 million from a loss of US$507 million in 2014.
- Operating EBITDA on a like-to-like
basis increased by 7% and 9% during the quarter and the full year,
respectively, to US$663 million and US$2.6 billion versus the
comparable periods of 2014.
- Operating EBITDA margin during the
quarter grew by 0.9 percentage points on a year-over-year basis
reaching 19.4%. For the full year operating EBITDA margin increased
to 18.7%, up 1.1 percentage points from 2014.
- Free cash flow after maintenance
capital expenditures for the quarter increased by 35% to US$566
million, compared to the same quarter of 2014. For the full year
2015, free cash flow after maintenance capital expenditures reached
US$881 million, an increase of 121% versus previous year.
Fernando A. Gonzalez, CEMEX Chief Executive Officer, said,
“Despite a challenging macroeconomic environment which has affected
many of our markets, our industry, and CEMEX in specific, we have
been able to meet these challenges and deliver strong operating and
financial results, on a like-to-like basis.
Our full-year net income was positive for the first time in six
years. In addition, our operating EBITDA increased by 9%, on a
like-to-like basis, reflecting our cost-reduction program of US$150
million as well as a positive operating leverage in several of our
markets, which translated into a 1.1 percentage-point improvement
in operating EBITDA margin. I am particularly pleased with the
growth in our free cash flow after maintenance capex of more than
US$480 million, which enabled us to reduce our debt by close to
US$1 billion during the year.”
Consolidated Corporate Results
During the fourth quarter of 2015, controlling interest net
income was US$144 million, an improvement over a loss of US$178
million in the same period last year.
Total debt plus perpetual notes decreased by US$254 million
during the quarter and by US$964 million during 2015.
Geographical Markets Fourth-Quarter 2015
Highlights
Net sales in our operations in Mexico decreased 19% in
the fourth quarter of 2015 to US$672 million, compared with US$827
million in the fourth quarter of 2014. Operating EBITDA decreased
by 10% to US$231 million versus the same period of last year.
CEMEX’s operations in the United States reported net
sales of US$967 million in the fourth quarter of 2015, up 5% from
the same period in 2014. Operating EBITDA increased 26% to US$173
million in the quarter, versus US$138 million in the same quarter
of 2014.
In Northern Europe, net sales for the fourth quarter of
2015 decreased 18% to US$738 million, compared with US$901 million
in the fourth quarter of 2014. Operating EBITDA was US$71 million
for the quarter, 14% lower than the same period last year.
Fourth-quarter net sales in the Mediterranean region were
US$370 million, 4% higher compared with US$357 million during the
fourth quarter of 2014. Operating EBITDA decreased 5% to US$63
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$436 million during the
fourth quarter of 2015, representing a decrease of 15% over the
same period of 2014. Operating EBITDA decreased 25% to US$125
million in the fourth quarter of 2015, from US$165 million in the
fourth quarter of 2014.
Operations in Asia reported a 4% increase in net sales
for the fourth quarter of 2015 to US$162 million, versus the fourth
quarter of 2014, and operating EBITDA for the quarter was US$46
million, up 4% 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/20160204005636/en/
CEMEXMedia 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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