Cement demand in South America results in growth for Cemex

Cemex Latam Holdings (CLH) has announced that its operating EBITDA increased by 24% y/y during 3Q13 to US$168 million with an operating EBITDA margin expansion of 1.7 percentage points, reaching a level of 35.5%. Net sales of building materials including cement hit US$474 million during the quarter, increasing by 18% y/y.

CLH’s quarterly highlights

• Housing solution projects in Colombia and higher volumes in most of CLH’s markets resulted in an increase in net sales during 3Q13.
• Higher volumes, lower distribution expenses, lower maintenance costs and lower fuel costs resulted in a growth in operating EBITDA. During 3Q13, operating EBITDA expanded in most of CLH’s markets y/y.

3Q regional results

• Colombia saw a rise of 25% in net sales to US$287 million, and EDITDA increased by 22% to US$115 million compared to US$94 million in 3Q12.
• In Panama, net sales saw an increase of 21% y/y, reaching US$84 million in 3Q13. Operating EBITDA reached US$40 million, increasing by 33%.
• Operations in Costa Rica reported net sales of US$40 million in 3Q13, up 19% y/y from US$34 million. EBITDA reached US$17 million, increasing by 29% y/y.
• The rest of CLH net sales in the quarter reached US$65 million. EBITDA increased by 14% from 3Q12, reaching US$18 million.

Commenting on the results, Carlos Jacks, CEO of CLH, said, “We are pleased by the strong results reached in the third quarter. Given the high levels of construction activity in the region, in many of our markets we sold record volumes of our products. We are also satisfied by the positive results in or housing solutions initiative in Colombia, as these projects are allowing us to capture incremental value.”

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldcement.com/the-americas/23102013/cement_demand_in_south_america_results_in_growth-_for_cemex_328/