Cemex reports an increase in net sales and operating EBITDA in 2013

Cemex has announced its results for full year 2013 and 4Q13, both of which reveal growth in net sales and operating EBITDA. Consolidated net sales improved by 4% to reach US$3.9 billion in 4Q13, while net sales for the full year came in at US$15.2 billion, 2% higher than in 2012. The increases were driven by greater sales volumes in the US, Mediterranean, Northern Europe, Asia and South, Central America and the Caribbean, in addition to higher product prices in local currency terms in many of the geographical markets in which Cemex operates.

Operating EBITDA grew by 4% to US$642 million in 4Q13 and by 1% to US$2.6 billion in 2013 as a whole. On a like-for-like basis, adjusting for currency fluctuations and pension plan changes in Northern Europe, operating EBITDA in 2013 was up by 4% on 2012. Operating earnings before other expenses increased by 30% in 4Q13 and by 17% in full year 2013.

Controlling interest net loss declined from US$913 million in 2012 to US$843 million in 2013. There was also improvement in the final quarter of the year, which saw controlling interest net loss drop from US$494 million in 4Q12 to US$255 million.

Highlights from Cemex’s 4Q13 regional results

• Mexico: net sales fell by 6% to US$785 million, while operating EBITDA dropped by 17% to US$247 million.
• United States: operating EBITDA reached US$77 million, up from the US$13 million achieved in 4Q12. Net sales also improved, growing by 8% to US$819 million.
• Northern Europe: net sales increased by 5% to US$1.1 billion, while operating EBITDA declined by 1% to US$79 million.
• Mediterranean: operating EBITDA fell by 5% but net sales were up 11% compared to 4Q12.
• South, Central America and the Caribbean: operating EBITDA grew from US$159 million in 4Q12 to US$183 million in 4Q13. Net sales came in at US$577 million, 11% higher than in the corresponding period in 2012.
• Asia: net sales declined in 4Q13, dropping by 4% to US$133 million. However, operating EBITDA improved by 12%.

“During 2013 we continued to deliver. This is our third consecutive year of EBITDA growth, driven by improvement in pricing and volume in most of our regions, the favourable operating leverage effect in the US, as well as our continued initiatives to improve our operating efficiency,” said Fernando A. González, Executive Vice President of Finance and Administration.

“Last year, we continued to successfully access the capital markets, issuing US$3.1 billion in four separate transactions. Our financial initiatives done during the year are expected to represent annual cash interest savings of approximately US$55 million. We are pleased with the way our credit continues to re-rate. We also remain focused on value creation, proactively improving our operating performance by focusing on pricing, value-added products and services, maintaining our cost discipline and outsourcing support activities, while at the same time we continue to look for ways to optimize our portfolio,” added González.

Adapted from press release by Louise Fordham

Read the article online at: https://www.worldcement.com/the-americas/07022014/cemex_4q13_and_2013_full_year_results_707/