Cemex could sell parts of business to lower debt, CEO tells Reuters

Cemex’s CEO Fernando Gonzalez has told Reuters that the group may sell part of its business in northern Europe, Asia and the Mediterranean in a bid to reduce debt. He is also reported to have said that 5 – 10% of Cemex Latam Holdings (CLH) could be sold off, with half of the earnings generated from the sale used to lower debt.

Earlier this month, CLH reported consolidated net sales of US$1725 million in 2014, down 1% on 2013. However, after adjusting for foreign exchange fluctuations and a lower revenue contribution from housing solutions projects in Colombia, net sales grew by 9% year-over-year. Taking these factors into account, operating EBITDA fell by 2% in 2014. Net debt declined by US$164 million in 2014, down to US$1140 million by the end of year. Commenting on the results, CLH CEO Carlos Jacks said: “We remain encouraged by the industry fundamentals in our markets. We expect the infrastructure and housing sectors in the region to remain important drivers for demand of our products over the following years.”

The Cemex Group’s consolidated net sales improved by 6% on a like-for-like basis in 2014, reaching US$15.7 billion. Operating EDITDA also increased, rising by 6% to US$2.7 billion.

Edited from various sources by Louise Fordham

Read the article online at: https://www.worldcement.com/the-americas/11022015/cemex-could-sell-part-of-business-to-reduce-debt-ceo-tells-reuters-311/