On 22 October Cemex announced that consolidated net sales had reached US$3.7 billion during 3Q15. This is an increase of 5% on a like-to-like basis for the ongoing operations when compared to the same period in 2014. The increase was due to the higher prices of Cemex products in local currency terms in most of its operations, as well as improved volumes in most products in the US and Asia region.
Operating earnings (before other expenses) in 3Q15 decreased by 8% to US$439 million. Controlling interest net loss narrowed to US$44 million during 3Q15 from a loss of US$106 million in the same period in 2014.
Operating EBITDA decreased by 10% to US$677 million or increased by 5% on a like-to-like basis for the ongoing operations and for foreign exchange fluctuations during 3Q15, compared with the same period last year. The increase on a like-to-like basis was mainly due to higher contributions from Mexico, the U.S., as well as from Cemex’s Northern Europe and Asia regions.
Operating EBITDA margin decreased by 0.2 percentage points on a year-over-year basis, reaching 18.5%. Free cash flow after maintenance capital expenditures for the quarter was US$436 million, a 25% increase compared to US$349 million in the same quarter of 2014.
Net operations in Mexico decreased by 17%, while net sales in the US reported a 9% increase from the same period in 2014. Cemex’s operations in South and Central America and the Caribbean reported a 19% decrease in net sales from the same period in 2014. In Northern Europe, net sales decreased by 21%, while there was a decrease of only 5% in the Mediterranean. Operations in Asia reported a 7% increase in net sales.
“Our reported results reflect the unprecedented strength of the U.S. dollar versus the currencies in most of our markets, which intensified during the quarter. Despite this, we had favourable operating results. Our quarterly sales and operating EBITDA increased by 5%, on a like-to-like basis. While EBITDA margin was relatively flat during the quarter, year-to-date EBITDA margin was the highest since 2009. Our free cash flow after maintenance capex also increased 25% during the quarter. We are pleased with the results so far of our value-before-volume strategy. Our year-to-date increase in consolidated prices, adjusted for the impact of our variable costs and freight rate increases, has offset slightly more than half of the effect of foreign-exchange fluctuations,” said Fernando A. Gonzalez, Chief Executive Officer.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/europe-cis/22102015/cemex-3q15-results-830/