CEMEX Reports Second-Quarter 2016 Results
July 27 2016 - 6:15AM
Business Wire
- Net income for the quarter increased
81% on a year-over-year, reaching US$205 million, and was the
highest in a second quarter since 2008.
- Operating EBITDA increased by 16% on a
like-to-like basis during the quarter, leading to an EBITDA margin
of 20.9%. Both EBITDA and EBITDA margin were the highest in a
second quarter since 2008.
- Free cash flow for the quarter was
US$422 million, an improvement of US$359 million, compared with the
same quarter of 2015 and the highest in a second quarter since
2006.
- Reduction of close to US$1.3 billion
during the first half of 2016 in our pro-forma total debt plus
perpetual notes, which reflects the utilization of the created cash
reserve and the proceeds from our Philippines transaction for debt
reduction, among other items.
CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE: CX) announced today that
its consolidated net sales reached US$3.7 billion during the second
quarter of 2016, an increase of 6% on a like-to-like basis for the
ongoing operations and adjusting for currency fluctuations, versus
the comparable period in 2015. Operating EBITDA increased 6% during
the quarter to US$771 million versus the same period in 2015. On a
like-to-like basis, operating EBITDA increased 16% in the same
period.
CEMEX’s Consolidated Second-Quarter 2016
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 Mexico, U.S., and our European region.
- Operating earnings before other
expenses, net, in the second quarter increased 11% and 24% on a
like-to-like basis to US$539 million.
- Controlling interest net income
improved 81% during the second quarter of 2016 to US$205 million
from US$114 million in the same period last year.
- Operating EBITDA increased during the
quarter 6% and, on a like-to-like basis, 16% to US$771
million.
- Operating EBITDA margin grew by 1.3
percentage points on a year-over-year basis reaching 20.9%.
- Free cash flow for the quarter was
US$422 million, an improvement of US$359 million, compared with the
same quarter of 2015.
Fernando A. Gonzalez, Chief Executive Officer, said: “Our solid
second quarter and first half 2016 results demonstrate the
resilience of our portfolio, which is largely comprised of
high-growth markets that are experiencing attractive supply-demand
conditions.
“We saw higher consolidated cement and aggregates volumes during
the quarter as well as continued favorable results from our
value-before-volume strategy, which led to a growth in sales of 6%
on a like-to-like basis. Operating EBITDA increased by 16% also on
a like-to-like basis with a margin expansion of 1.3 percentage
points. Free cash flow after maintenance capex reached US$478
million during the quarter, an increase of US$376 million from last
year’s level.
“Our pro-forma debt, reflecting our cash reserve and the
proceeds from our Philippines transaction, among other items, is
close to US$1.3 billion lower than that at the end of 2015. This is
an additional step in our path to reach an investment-grade capital
structure as soon as possible.”
Consolidated Corporate Results
During the second quarter of 2016, controlling interest net
income was US$205 million, an improvement over US$114 million in
the same period last year.
Total debt plus perpetual notes decreased by US$1,151 million
during the quarter.
Geographical Markets Second-Quarter 2016
Highlights
Net sales in our operations in Mexico increased 7% in the
second quarter of 2016 to US$796 million, compared with US$745
million in the second quarter of 2015. Operating EBITDA increased
18% to US$302 million versus the same period of last year.
CEMEX’s operations in the United States reported net
sales of US$1,036 million in the second quarter of 2016, up 3% from
the same period in 2015. Operating EBITDA increased 10% to US$172
million in the quarter, versus US$156 million in the same quarter
of 2015.
CEMEX’s operations in South, Central America and the
Caribbean reported net sales of US$466 million during the
second quarter of 2016, representing a decrease of 10% over the
same period of 2015. Operating EBITDA decreased 5% to US$153
million in the second quarter of 2016, from US$160 million in the
second quarter of 2015.
In Europe, net sales for the second quarter of 2016
decreased 2% to US$910 million, compared with US$926 million in the
second quarter of 2015. Operating EBITDA was US$122 million for the
quarter, 4% higher than the same period last year.
Operations in Africa, Middle East and Asia reported a 4%
decrease in net sales for the second quarter of 2016, to US$407
million, versus the second quarter of 2015, and operating EBITDA
for the quarter was US$93 million, down 2% 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160727005501/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
Cemex SaB De Cv (NYSE:CX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cemex SaB De Cv (NYSE:CX)
Historical Stock Chart
From Apr 2023 to Apr 2024