Cemex announces Q2 results

On 22 July, Cemex announced that consolidated net sales increased by 9% during the second quarter of 2011 to approximately US$4.1 billion versus the comparable period in 2010. Operating EBITDA declined by 7% during the second quarter of 2011 to US$615 million versus the same period in 2010.

Financial and Operational Highlights

• The increase in consolidated net sales was due to higher volumes mainly from Cemex’s operations in Northern Europe, South/Central America and the Caribbean, and Mexico.
• The infrastructure and residential sectors were the main drivers of demand in most of Cemex’s marketsFree cash flow after maintenance capital expenditures for the quarter was US$18 million, compared with US$187 million in the same quarter of 2010.
• Operating income in the second quarter declined by 12%, to US$258 million, from the comparable period in 2010.

Fernando A. González, Executive Vice President of Finance and Administration, said: “This is the third consecutive quarter of top-line growth in our results. We are pleased with the quarterly performance of our operations in Northern Europe; the South, Central American and Caribbean region; and Mexico, which helped mitigate the challenging conditions of the construction sector in the United States.

We also remain focused on our transformation process, which will reach a run rate of US$400 million in recurring improvement in our steady state EBITDA by the end of 2012.”

Consolidated corporate results

During the second quarter of 2011, controlling interest net income was a loss of US$294 million, slightly better than the loss of US$306 million in the same period last year.

Geographical markets second quarter 2011 highlights

Net sales in Cemex’s operations in Mexico increased 5% in the second quarter of 2011 to US$968 million, compared with US$923 million in the second quarter of 2010. Operating EBITDA declined by 4% to US$309 million versus the same period of last year.

Cemex’s operations in the United States reported net sales of US$619 million in the second quarter of 2011, down 9% from the same period in 2010. Operating EBITDA was a loss of US$22 million in the quarter.

In Northern Europe, net sales for the second quarter of 2011 increased 24% to US$1.35 billion, compared with US$1.10 billion in the second quarter of 2010. Operating EBITDA was US$152 million for the quarter, 52% higher than the same period last year.

Second-quarter net sales in the Mediterranean region were US$477 million, flat versus the same quarter in 2010. Operating EBITDA decreased 15% to US$125 million for the quarter versus the comparable period in 2010.

Cemex’s operations in South/Central America and the Caribbean reported net sales of US$442 million during the second quarter of 2011, representing an increase of 23% over the same period of 2010. Operating EBITDA decreased 3% to US$125 million in the second quarter of 2011, from US$128 million in the second quarter of 2010.

Operations in Asia reported a 9% decrease in net sales for the second quarter of 2011, to US$129 million, versus the second quarter of 2010, and Operating EBITDA for the quarter was US$22 million, down 45% from the same period last year.

Read the article online at: https://www.worldcement.com/the-americas/22072011/cemex_announces_q2_results/