CEMEX reports 2018 financial results
Published by Lucy Stewardson,
CEMEX has announced that on a like-for-like basis for ongoing operations and adjusting for currency fluctuations, consolidated net sales increased by 4% in 4Q18, to US$3.5 billion. The company’s net sales are recorded to have increased 6% for FY18 to US$14.4 billion, compared to comparable periods in 2017. Also on a like-for-like basis, operating EBITDA remained flat in 4Q18 at US$604 million. This increased by 1% for FY18 compared to 2017, to US$2.6 billion.
It is thought that the like-for-like increase in quarterly consolidated net sales was due to the higher prices of the company’s products in local currency terms in all of the company’s regions. In addition, there were higher volumes, primarily in the ready-mixed and aggregates businesses in Mexico and the US.
Before other expenses, net, operating earnings in 4Q18 remained flat at US$396 million, increasing of 2% to US$1.7 billion for FY18. These are both on a like-for-like basis.
Compared with a loss of US$105 million for 4Q17, controlling interest net loss during 4Q18 was US$37 million. Controlling interest net income for FY18 declined to US$543 million, from US$806 million in FY17.
On a like-for-like basis, operating EBITDA remained flat for 4Q18, at US$604 million. It increased for FY18 by 1%, to US$2.6 billion. This is compared to FY17.
For 4Q18, operating EBITDA margin decreased to 17.5%, from 18.3% in 4Q17. For FY18, operating EBITDA margin decreased to 17.8% from 18.9% in FY17. After maintenance capital expenditures, for 4Q18 free cash flow decreased by 41% to US$403 million, compared to 4Q17. For FY18, free cash flow after maintenance capital expenditures reached US$918 million. Conversion of EBITDA into free cash flow after maintenance capex reached 36% for FY18.
Consolidated corporate results
Compared to a loss of US$105 million in 4Q17, for 4Q18 controlling interest net loss was US$37 million. For FY18, controlling interest net income was US$543 million – a decline from an income of US$806 million in FY17.
The company’s total debt plus perpetual notes decreased by US$239 million in 4Q18, while for FY18 total debt plus perpetual notes was reduced by US$952 million. This represents an 8% reduction from the debt level as of the end of 2017, and a 40% reduction compared to the end of 2013.
Geographical markets for 4Q18
For the company’s operations in Mexico, net sales increased by 5% to US$776 million in 4Q18 compared to 4Q17. Also on a like-for-like basis, operating EBITDA remained flat at US$265 million for 4Q18.
In this US, the company reported net sales of US$905 million for 4Q18, which was an increase of 8% compared to 4Q17. Operating EBITDA increased by 6% to US$168 million in 4Q18 compared to 4Q17.
In South America, Central America, and the Caribbean, the company has reported net sales of US$425 million for 4Q18. This was a 6% decline compared to 4Q17. Operating EBITDA also decreased by 8% to US$93 million in 4Q18. This is compared to US$105 million for 4Q17.
The company’s net sales in Europe increased by 5% in 4Q18 compared to 4Q17, reaching US$914 million. Operating EBITDA was reported to be US$87 million in 4Q18, which is 8% lower than 4Q17.
In Asia, the Middle East, and Africa, the company has reported stable net sales at US$346 million for 4Q18. Operating EBITDA for the quarter was 17% lower than that reported in 4Q17.
“We are pleased with our 6% top-line growth during 2018, supported by higher consolidated volumes and prices in our three core products,” said Fernando A. Gonzalez, CEO of CEMEX. “Operating EBITDA grew by 1% on a like-for-like basis in this period. During 2018, we generated more than US$900 million in free cash flow after maintenance capex, with a strong EBITDA-to-free-cash-flow conversion rate, which allowed us to reduce our total debt by 8%, or close to US$1 billion. We also made significant advances under our A Stronger CEMEX plan during the 2H18 and are on track to achieve our 2019 and 2020 targets under this programme.”
Read the article online at: https://www.worldcement.com/the-americas/12022019/cemex-reports-2018-financial-results/
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