CEMEX has announced that, on a like-for-like basis for ongoing operations, and adjusting for foreign exchange fluctuations, consolidated net sales decreased by 3%, reaching US$3.5 billion during 2Q19, compared to 2Q18. Operating EBITDA decreased by 14% on a like-for-like basis in 2Q19, to US$644 million y/y.
The company has stated that the decrease in quarterly consolidated net sales was due to lower volumes in all of the company’s regions except for the US, partially offset by higher prices for the company’s products, in local currency terms, in all of its regions. Operating earnings before other expenses, net, decreased by 24% on a like-for-like basis in 2Q19, to US$377 million. Controlling interest net income during the quarter was US$155 million, from US$376 million in 2Q18. Operating EBITDA decreased by 14% on a like-for-like basis during 2Q19, compared to US$644 million in 2Q18. Operating EBITDA margin during the quarter decreased to 18.3% from 20.6% y/y. Free cash flow after maintenance capital expenditures for 2Q19 was US$217 million.
“The second quarter was impacted by the challenging global economic environment,” said Fernando A. Gonzalez, CEO of CEMEX. “Weaker than expected industrial activity and continued trade conflicts have resulted in lower investment in several of our markets. Mexico, in particular, has been affected by these factors, which led to lower than expected volumes. Adverse weather conditions in the US also translated into muted activity during the quarter. In contrast, we are very pleased with the favourable performance of our Europe region.
“We continue our focus on pricing strategies and operating efficiencies in order to grow our EBITDA and expand our EBITDA margin. We anticipate our EBITDA generation to increase during 2H19, driven by expected improved government spending in Mexico, better pricing levels, and higher cement volumes in the US and Europe, as well as moderation in energy headwinds, and a higher contribution from our A Stronger CEMEX plan,” he concluded.
Read the article online at: https://www.worldcement.com/the-americas/26072019/cemex-reports-2q19-results/