Cemex announces third quarter results

CEMEX announced today that consolidated net sales decreased 2% in the third quarter of 2010 to approximately US$ 3.8 billion versus the comparable period in 2009. Operating EBITDA decreased 13% in the third quarter of 2010 to US$ 649 million versus the same period of 2009. Consolidated cement sales volumes increased 2% versus the same period in 2009, while ready-mix and aggregates sales volumes both decreased 3%.

CEMEX's consolidated third quarter financial and operational highlights

• Lower sales in the quarter were primarily attributable to a lower contribution mainly from the group’s US and European operations, partially mitigated by a higher contribution from its Mexican operations.
• The infrastructure and residential sectors were the main drivers of demand in most of its markets.
• Free cash flow after maintenance capital expenditures for the quarter was US$250 million, a 4% decrease from the same quarter of 2009.
• Operating income decreased 25% during the quarter compared with the same period last year, reaching US$284 million.

Fernando A. Gonzalez, Executive Vice President of Planning and Finance, said: "Despite the still challenging business environment in some of our key markets, we believe that economic conditions in most of our geographies have stabilised and/or bottomed out, with the fourth quarter likely to be an inflection point for our trailing twelve months consolidated EBITDA. We continue adapting our operations to the prevailing market conditions, and remained focused on our short term priority of reducing debt."

Consolidated corporate results

Net income from continuing operations was a loss of US$86 million in the third quarter of 2010 versus a gain of US$78 million in the third quarter of 2009 due to lower operating income and higher financial expenses; the loss was mitigated by a foreign exchange gain.

Total debt plus perpetual notes increased US$226 million during the quarter, reflecting a negative conversion effect in the amount of US$497 million.

Geographical markets third quarter highlights

Net sales in Cemex’s operations in Mexico increased 14% in the third quarter of 2010 to US$868 million, compared with US$761 million in the third quarter of 2009. Operating EBITDA decreased 3% to US$286 million versus the same period of last year.

CEMEX's operations in the United States reported net sales of US$ 683 million in the third quarter of 2010, down 9% from the same period in 2009. Operating EBITDA was a loss of US$2 million in the quarter.

In Europe, net sales for the quarter decreased 9% to US$1.4 billion, compared with US$1.5 billion in the third quarter of 2009. Operating EBITDA decreased 22% to US$193 million, from US$249 million in the third quarter of 2009.

CEMEX's operations in South/Central America and the Caribbean reported net sales of US$366 million during the third quarter of 2010, representing a decline of 3% over the same period of 2009. Operating EBITDA decreased 20% to US$108 million, from US$135 million in the third quarter of 2009.

Third-quarter net sales in Africa and the Middle East were US$246 million, down 4% from the same quarter of 2009. Operating EBITDA increased 18% to US$103 million for the quarter versus the comparable period in 2009.

Operations in Asia reported a 9% increase in net sales, to US$124 million, versus the third quarter of 2009, and operating EBITDA was US$29 million, down 8% from the same period in the previous year.

Further information about the company’s 3Q financial results can be found here.

Read the article online at: https://www.worldcement.com/the-americas/26102010/cemex_announces_third_quarter_results/