CEMEX reports increase in sales and operating EBITDA for 3Q18

Measured on a like-for-like basis, considering ongoing operations, and adjusting for currency fluctuations, CEMEX has reported an increase in consolidated net sales of 7% during 3Q18. This brings its sales to US$3.7 billion. Also on a like-for-like basis, operating EBITDA is reported to have increased by 2% compared to 3Q17, bringing the 3Q18 total to US$704 million.

The increase in quarterly consolidated net sales is thought to be due to higher prices for CEMEX products in local currency terms, as well as higher volumes in regions including Mexico, the US, Europe, Asia, the Middle East, and Africa.

It has also been reported that net operating earnings before other expenses increased by 2% in 3Q18, compared like-for-like to 3Q17, bringing the total to US$490 million. Controlling interest net income during 3Q18 was US$174 million, compared with US$289 million in 3Q17. The operating EBITDA margin decreased from 19.9% in 3Q17 to 18.8% in 3Q18 and total debt plus perpetual notes also decreased by US$254 million. Finally, free cash flow after maintenance capital expenditures for the quarter decreased by 10% to US$390 million, compared with 3Q17.

“We are encouraged by our favourable results during the quarter, with top-line growth of 8% on a like-for-like basis, and operating EBITDA increasing by 2%,” said Fernando Gonzalez, CEO of CEMEX. “These results were underpinned by healthy volume and pricing dynamics in our three core products in most of our portfolio. We are pleased with our operations in Mexico and the US, with strong growth year-over-year volumes for our three core products and improved prices. In our Europe region, prices continued to improve with growth in ready mix aggregate volumes. In addition, in our Asia, Middle East, and Africa region, we saw volumes and prices in the Philippines rising in the mid-single digits, as well as a double-digit increase in cement prices in Egypt.
We also made progress in our A Stronger CEMEX plan. During the quarter, we sold more than US$60 million in assets. We also reduced total debt plus perpetuals by US$254 million. On our cost-reduction efforts, we expect to implement our different initiatives by the end of this year so the full benefit of these actions is reflected in next year’s EBITDA. Lastly, we intend to propose at our annual shareholders’ meeting next year a cash dividend programme for our shareholders, starting in 2019 with an amount of US$150 million.”

CEMEX is a global building materials company that provides high quality products and reliable service to customers and communities in more than 50 countries.

Read the article online at: https://www.worldcement.com/the-americas/26102018/cemex-reports-increase-in-sales-and-operating-ebitda-for-3q18/