CEMEX shares fourth quarter 2020 financial results
Published by Emily Thomas,
Deputy Editor
World Cement,
CEMEX has announced strong results in the fourth quarter of 2020 with EBITDA growing double-digit on a year over year basis in most regions. Consolidated net sales increased 9% in fourth quarter of 2020 to US$3.5 billion and increased 1% for the full year 2020 to US$13 billion versus the comparable periods in 2019. Operating EBITDA increased 19% during the fourth quarter of 2020 to US$644 million and increased by 7% for the full year to US$2.46 billion. The pickup in EBITDA in the fourth quarter is attributable to significant momentum in cement volumes and cost savings under ‘Operation Resilience’.
CEMEX’s consolidated fourth quarter 2020 financial and operational highlights:
- Net Sales increased 9%, to US$3,537 million. This is the highest reported Sales in a fourth quarter since 2014.
- Operating EBITDA increased 19% to US$644 million, as compared to the same period in 2019.
- Operating EBITDA margin increased by 1.2pp, to 18.2% due to volume growth and cost savings under ‘Operation Resilience’.
- Free Cash Flow after Maintenance Capital Expenditures reached US$575 million, a 9% growth versus the same quarter of 2019.
- Controlling Interest Net Income was US$70 million in the fourth quarter of 2020 versus a loss of US$238 million in the same quarter of 2019.
- Despite COVID-19 disruptions during the year, CEMEX continued to make progress on its deleveraging goal. Excluding the foreign exchange effect, net debt plus perpetuals declined by US$1027 million in 2020, while the leverage ratio declined by one tenth of a turn.
“2020 was one of the most challenging years we have faced but it also was a remarkable year that tested the strengths of CEMEX and several of our recent strategic initiatives. I am proud of our performance, the organisation, and how we responded to the sudden arrival of COVID-19 in 2020,” said Fernando A. González, CEO of CEMEX. “I would like to recognise our employees who have risen to the challenge of COVID and adjusted their protocols to work safely. Despite our best efforts, however, we have lost valued colleagues to the pandemic. I would like to acknowledge the contribution of these individuals and extend my heart-felt sympathies to their families and friends.”
Geographical markets fourth quarter 2020 highlights
Net Sales in Mexico increased 23% to US$836 million. Operating EBITDA increased 26% to US$268 million in the quarter, versus the same period of the previous year.
CEMEX’s operations in the United States reported Net Sales of US$1.0 billion, an increase of 8% from the same period in 2019. Operating EBITDA increased by 25% to US$186 million versus the same quarter of 2019. For the full year, the US business generated US$747 million in EBITDA, the highest reported annual amount since 2007.
In the Europe, Middle East, Africa and Asia region, Net Sales increased by 6%, compared with the same period of the previous year, reaching US$1.2 billion. Operating EBITDA was US$159 million for the quarter, 5% higher than the same period last year.
CEMEX’s operations in the South, Central America and the Caribbean region, reported Net Sales of US$410 million, an increase of 6% over the same period of 2019. Operating EBITDA increased by 11% to US$106 million in the fourth quarter of 2020, in contrast to the same quarter of 2019.
Read the article online at: https://www.worldcement.com/the-americas/12022021/cemex-shares-fourth-quarter-2020-financial-results/
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