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Cemex Latam Holdings reports 2Q results

World Cement,


Cemex Latam Holdings announced that its consolidated net sales reached US$ 441 million during 2Q14, an increase of 2% compared to the same period last year.

Operating EBITDA declined by 14% during the second quarter of 2014 reaching US$142 million compared to the same quarter in 2013, largely due to scheduled maintenance works.

Carlos Jacks, CEO of CLH, said: “We are pleased with the continued positive volume trend in markets like Colombia and Nicaragua, where we reached a new sales volume record in our cement and aggregates operations. In fact, in Colombia we have reached a new cement volume record in each of the past 5 quarters.”

Report highlights

  • The increase in consolidated net sales during 2Q14 is explained by higher sales in Colombia. Adjusting for working days, net sales in Colombia have increased by double-digit rates for the past four quarters.
  • Compared to 1Q14, operating EBITDA margin in 2Q14 in Panama and Costa Rica increased by 3.9 and 4.3 percentage points, respectively.
  • On a consolidated basis, as of the end of 2Q14, there were close to 350 distributors affiliated to the Construrama network, out of which close to 250 stores are already in operation.
  • Free cash flow during the first six months of 2014 reached US$130 million, representing an increase of 4% compared to the same period a year ago.

Jacks added: “In light of the strong volume performance during the first six months of 2014 we are increasing our full-year volume expectations in some of our markets. During the second half of 2014, under our housing solutions initiative, we will participate mainly in Colombia in the construction of about 12 000 houses, which should also contribute to higher demand for our products.”

Consolidated corporate results

  • During 2Q14, controlling interest net income reached approximately US$67 million.
  • Net debt decreased to US$1178 million as of the end of 2Q14.

Colombia

During 2Q14 operating EBITDA in Colombia decreased by 14% to US$88 million versus US$103 million in 2Q13, with a year-over-year increase of 9% in net sales reaching US$260 million.

Panama

In Panama, operating EBITDA decreased by 17% to US$34 million during 2Q14, compared to the same quarter last year. Net sales reached US$73 million in 2Q14, a decline of 11% compared to the same period in 2013.

Costa Rica

In Costa Rica, operating EBITDA reached US$19 million during the second quarter, declining by 4% compared to the same period a year ago. Net sales decreased by 4% to US$41 million, compared to 2Q13.

Rest of world

Remaining CLH net sales in 2Q14 reached US$73 million. Operating EBITDA in the second quarter decreased by 1%, versus the comparable period in 2013, reaching US$21 million.


Adapted from press release by Katie Woodward

Read the article online at: https://www.worldcement.com/the-americas/17072014/cemex_latam_q2_2014_sales_increase_2_percent_181/


 

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