- Net income for the quarter reached
US$286 million, an improvement of US$330 million over the same
period last year. This was the fourth consecutive quarter with a
positive net income and the highest net income in a quarter since
2008.
- Operating EBITDA increased by 22% on a
like-to-like basis during the quarter, leading to an EBITDA margin
expansion of 3.2 percentage points, to reach 21.8%. Both EBITDA and
EBITDA margin were the highest in a quarter since 2008.
- Free cash flow after maintenance capex
for the quarter and the first nine months of the year was US$548
million and US$1.05 billion, respectively. Year to date free cash
flow improved US$757 million compared with the same period last
year.
- Total debt plus perpetual notes was
reduced by US$1.4 billion since the beginning of the year.
CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE: CX), announced today that
consolidated net sales reached US$3.6 billion during the third
quarter of 2016, an increase of 4% on a like-to-like basis for the
ongoing operations and adjusting for currency fluctuations, versus
the comparable period in 2015. Operating EBITDA increased 22% on a
like-to-like basis during the quarter, to US$780 million.
CEMEX’s Consolidated Third-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 and our European and Asia, Middle East
& Africa regions.
- Operating earnings before other
expenses, net, in the third quarter increased by 25%, to US$551
million.
- Controlling interest net income
improved to US$286 million from a loss of US$44 million in the same
period last year.
- Operating EBITDA increased during the
quarter by 15% and, on a like-to-like basis, by 22% to US$780
million.
- Operating EBITDA margin grew by 3.2
percentage points on a year-over-year basis reaching 21.8%.
- Free cash flow after maintenance capex
for the quarter was US$548 million, US$112 million higher than in
the same period last year.
Fernando A. Gonzalez, Chief Executive Officer, said, “During the
third quarter, we continued to deliver strong underlying
operational and financial results by remaining focused on the
variables we can control.
“Our year-to-date operating EBITDA grew 17 percent on a
like-to-like basis, with a 5 percent growth in sales. This was the
highest year-to-date EBITDA growth in a decade. Our free cash flow
after maintenance capex reached US$1.05 billion year to date, an
increase of US$757 million from last year’s level, reflecting our
initiatives to reduce financial expenses and improve working
capital, and translating into a record-low 7 working-capital days.
Conversion of operating EBITDA into free cash flow after
maintenance capex reached 49% during the first nine months of the
year.
“In addition, total debt is close to US$1.4 billion dollars
lower than that at the end of 2015. Since 2014, we have reduced
total debt by US$3.5 billion, or about 20% of the then outstanding
debt. We continue with our initiatives to improve our debt maturity
profile and strengthen our capital structure.”
Consolidated Corporate Results
During the third quarter of 2016, controlling interest net
income was US$286 million, an improvement over a loss of US$44
million in the same period last year.
Total debt plus perpetual notes decreased by US$882 million
during the quarter.
Geographical Markets Third-Quarter 2016
Highlights
Net sales in our operations in Mexico increased 25% on a
like-to-like basis in the third quarter of 2016 to US$732 million,
compared with US$669 million in the third quarter of 2015.
Operating EBITDA increased by 40% on a like-to-like basis to US$268
million versus the same period of last year.
CEMEX’s operations in the United States reported net
sales of US$1,065 million in the third quarter of 2016, flat on a
like-to-like basis versus the same period in 2015. Operating EBITDA
increased 13% to US$196 million in the quarter, versus a gain of
US$172 million in the same quarter of 2015.
CEMEX’s operations in South, Central America and the
Caribbean reported net sales of US$438 million during the third
quarter of 2016, representing a decrease of 7% on a like-to-like
basis over the same period of 2015. Operating EBITDA increased 4%
to US$145 million in the third quarter of 2016, from US$139 million
in the third quarter of 2015.
In Europe, net sales for the third quarter of 2016
decreased 1% on a like-to-like basis to US$865 million, compared
with US$921 million in the third quarter of 2015. Operating EBITDA
was US$129 million for the quarter, 5% higher on a like-to-like
basis than the same period last year.
Operations in Asia, Middle East and Africa reported a 5%
increase on a like-to-like basis in net sales for the third quarter
of 2016, to US$408 million, versus the third quarter of 2015, and
operating EBITDA for the quarter was US$111 million, up 32% on a
like-to-like basis 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/20161027005575/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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