CEMEX Reports First-Quarter 2016 Results
April 21 2016 - 6:15AM
Business Wire
- Net income was US$35 million during the
quarter and was positive in a first quarter for the first time in 7
years.
- Operating EBITDA increased 12% on a
like-to-like basis during the quarter and was the highest
first-quarter EBITDA, as well as the highest EBITDA margin since
2009.
- First positive free cash flow after
maintenance capital expenditures in a first quarter since
2009.
CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE: CX), announced today that
consolidated net sales reached US$3.2 billion during the first
quarter of 2016, an increase of 3% on a like-to-like basis for the
ongoing operations and adjusting for currency fluctuations, versus
the comparable period in 2015. Operating EBITDA increased 12% on a
like-to-like basis during the quarter to US$583 million versus the
same period in 2015.
CEMEX’s Consolidated First-Quarter 2016
Financial and Operational Highlights
- The increase 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 the U.S.,
and our Europe and AME&A regions.
- On a like-to-like basis, operating
earnings before other expenses, net, in the first quarter increased
19% to US$358 million versus the comparable period in 2015.
- Controlling interest net income
improved to US$35 million during the first quarter of 2016 from a
loss of US$149 million in the same period last year.
- Operating EBITDA increased during the
quarter 12% on a like-to-like basis to US$583 million.
- Operating EBITDA margin grew by 1.2
percentage points on a year-over-year basis reaching 18.2%.
- Free cash flow after maintenance
capital expenditures for the quarter was US$8 million, compared
with negative US$281 million in the same quarter of 2015.
- Free cash flow for the quarter was
negative US$35 million, an improvement of US$322 million, compared
with the same quarter of 2015.
Fernando A. Gonzalez, CEMEX Chief Executive Officer, said, “We
continue to see favorable results from the implementation of our
value-before-volume strategy, with increases in sequential pricing
in our three core products. Higher consolidated prices led to a
like-to-like increase in net sales of 3%. Prices increased more
than our costs and we had a favorable operating leverage in many of
our markets leading to a 12% increase in EBITDA on a like-to-like
basis, as well as an EBITDA margin expansion of 1.2 percentage
points.
We are particularly pleased with both our free cash flow after
maintenance capital expenditures and our net income being positive
in a first quarter for the first time in 7 years.”
Consolidated Corporate Results
During the first quarter of 2016, controlling interest net
income was US$35 million, an improvement over a loss of US$149
million in the same period last year.
Total debt plus perpetual notes increased by US$672 million
during the quarter.
Geographical Markets First-Quarter 2016
Highlights
Net sales in our operations in Mexico decreased 17% in
the first quarter of 2016 to US$633 million, compared with US$766
million in the first quarter of 2015. Operating EBITDA decreased by
13% to US$227 million versus the same period of last year.
CEMEX’s operations in the United States reported net
sales of US$920 million in the first quarter of 2016, up 6% from
the same period in 2015. Operating EBITDA increased 71% to US$109
million in the quarter, versus the comparable period of 2015.
CEMEX’s operations in South, Central America and the
Caribbean reported net sales of US$422 million during the first
quarter of 2016, representing a decrease of 10% over the same
period of 2015. Operating EBITDA decreased 8% to US$136 million in
the first quarter of 2016, from US$148 million in the first quarter
of 2015.
In Europe, net sales for the first quarter of 2016
decreased 3% to US$729 million, compared with US$748 million in the
first quarter of 2015. Operating EBITDA was US$52 million for the
quarter, 2% lower than the same period last year.
Operations in Asia, Middle East and Africa reported a 4%
increase in net sales for the first quarter of 2016, to US$420
million, versus the first quarter of 2015, and operating EBITDA for
the quarter was US$103 million, up 16% 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. Celebrating its 110th anniversary, CEMEX
has a rich history of improving the well-being of those it serves
through innovative building solutions, efficiency advancements, and
efforts 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/20160421005518/en/
CEMEX, S.A.B. de C.V.Media Relations:Jorge
Perez, +52(81) 8888-4334mr@cemex.comorInvestor
Relations:Eduardo Rendon, +52(81)
8888-4256ir@cemex.comorAnalyst Relations:Lucy
Rodriguez, +1(212) 317-6007ir@cemex.com
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