Cemex reports Q3 2016 results

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.

Read the article online at: https://www.worldcement.com/indian-subcontinent/28102016/cemex-reports-q3-2016-results/