CEMEX has announced that, on a like-for-like basis for the ongoing operations and adjusting for foreign exchange fluctuations, consolidated net sales decreased by 1%, reaching US$3.5 billion during 3Q19 compared to the comparable period in 2018. Operating EBITDA decreased by 7% on a like-for-like basis during 3Q19, to US$681 million y/y.
The decrease in quarterly consolidated net sales was due to lower volumes mainly in Mexico and the company’s Asia, Middle East, and Africa region, partially offset by improved prices for its products in local currency terms in most of its regions. Operating earnings before other expenses, net, decreased by 14% on a like-for-like basis, to US$409 million.
Controlling interest net income during 3Q19 was US$187 million, from US$169 million in 3Q18. Operating EBITDA decreased by 7% on a like-for-like basis during the quarter, to US$681 million.
Operating EBITDA margin during the quarter decreased to 19.5% from 20.6% in 3Q18. Free cash flow after maintenance capital expenditures for the quarter was US$290 million.
“In the third quarter, our business continued to be challenging and was negatively impacted by weaker macroeconomic conditions in several of the markets we serve,” said Fernando A. Gonzalez, CEO of CEMEX. “In Mexico, we believe demand for our products is bottoming out and we are cautiously optimistic on renewed activity going forward, given the expected announcement of a new infrastructure programme. In the US, EBITDA improved during the quarter as a result of favourable pricing, and despite weaker volumes mainly due to weather and competitive dynamics in some of our markets. In our Europe and AMEA regions, we are pleased with the solid growth in EBITDA and expansion in margins, driven primarily by favourable pricing and our cost-reduction initiatives.
“As part of our A Stronger CEMEX plan, we are committed to further strengthen our balance sheet through an important reduction in our debt and repositioning our portfolio for higher growth.”
Read the article online at: https://www.worldcement.com/the-americas/24102019/cemex-reports-3q19-results/