Skip to main content

Cemex reports Q1 2016 results

Published by
World Cement,


Cemex, S.A.B. de C.V. announced today that consolidated net sales reached US$3.2 billion during the first quarter of 2016, an increase of 3% on a like-to-like basis for the ongoing operations and adjusting for currency fluctuations, versus the comparable period in 2015. Operating EBITDA increased 12% on a like-to-like basis during the quarter to US$583 million versus the same period in 2015.

Cemex’s consolidated first-quarter 2016 financial and operational highlights:

  • The increase in consolidated net sales was due to higher prices of our products, in local currency terms, in most of our operations, as well as higher volumes in the U.S., and our Europe and AME&A regions.
  • On a like-to-like basis, operating earnings before other expenses, net, in the first quarter increased 19% to US$358 million versus the comparable period in 2015.
  • Controlling interest net income improved to US$35 million during the first quarter of 2016 from a loss of US$149 million in the same period last year.
  • Operating EBITDA increased during the quarter 12% on a like-to-like basis to US$583 million.
  • Operating EBITDA margin grew by 1.2 percentage points on a year-over-year basis reaching 18.2%.
  • Free cash flow after maintenance capital expenditures for the quarter was US$8 million, compared with negative US$281 million in the same quarter of 2015.
  • Free cash flow for the quarter was negative US$35 million, an improvement of US$322 million, compared with the same quarter of 2015.

Fernando A. Gonzalez, Cemex Chief Executive Officer, said: “We continue to see favourable results from the implementation of our value-before-volume strategy, with increases in sequential pricing in our three core products. Higher consolidated prices led to a like-to-like increase in net sales of 3%. Prices increased more than our costs and we had a favourable operating leverage in many of our markets leading to a 12% increase in EBITDA on a like-to-like basis, as well as an EBITDA margin expansion of 1.2 percentage points.

We are particularly pleased with both our free cash flow after maintenance capital expenditures and our net income being positive in a first quarter for the first time in 7 years.”

Consolidated Corporate Results
During the first quarter of 2016, controlling interest net income was US$35 million, an improvement over a loss of US$149 million in the same period last year.

Total debt plus perpetual notes increased by US$672 million during the quarter.

Geographical markets Q1 2016 highlights
Net sales in our operations in Mexico decreased 17% in the first quarter of 2016 to US$633 million, compared with US$766 million in the first quarter of 2015. Operating EBITDA decreased by 13% to US$227 million versus the same period of last year.

Cemex’s operations in the United States reported net sales of US$920 million in the first quarter of 2016, up 6% from the same period in 2015. Operating EBITDA increased 71% to US$109 million in the quarter, versus the comparable period of 2015.

Cemex’s operations in South, Central America and the Caribbean reported net sales of US$422 million during the first quarter of 2016, representing a decrease of 10% over the same period of 2015. Operating EBITDA decreased 8% to US$136 million in the first quarter of 2016, from US$148 million in the first quarter of 2015.

In Europe, net sales for the first quarter of 2016 decreased 3% to US$729 million, compared with US$748 million in the first quarter of 2015. Operating EBITDA was US$52 million for the quarter, 2% lower than the same period last year.

Operations in Asia, Middle East and Africa reported a 4% increase in net sales for the first quarter of 2016, to US$420 million, versus the first quarter of 2015, and operating EBITDA for the quarter was US$103 million, up 16% from the same period last year.


Edited from source by Joseph Green. Source: Cemex

Read the article online at: https://www.worldcement.com/the-americas/22042016/cemex-reports-q1-2016-results-954/


 

Embed article link: (copy the HTML code below):