Cemex Latam announces decrease in sales
Published by Rebecca Bowden,
Cemex Latam Holdings, S.A. has announced that consolidated net sales reached US$314 million during 2Q17, decreasing by 12% on a year-over-year basis. During 1H17, consolidated net sales reached US$643 million, declining by 4% compared to those of the same period of 2016. These declines are mostly explained by lower cement volumes and prices in Colombia. As a result, operating EBITDA declined by 39% and 26% during 2Q17 and 1H17, respectively, on a year over year basis.
During 2Q17, Cemex Latam’s consolidated domestic gray cement, ready-mix, and aggregates volumes were negatively affected by fewer working days and adverse weather conditions, and decreased by 3%, 13% and 9%, compared to those 2Q16, respectively. During the quarter, consolidated daily cement dispatches grew by 1.5%, on a year-over-year basis, and increased in all operations, with the exception of Colombia and Nicaragua.
Jaime Muguiro, CEO of CLH, said, “Despite the increase in our daily cement dispatches in most of our operations, and in spite of having achieved a new historic cement volume record in our Rest of CLH region, our results were negatively affected by the intense competitive environment in Colombia, fewer working days as a consequence of the Easter holidays, and adverse weather conditions.”
He continued: “Despite a 39% decline in our quarterly EBITDA, mostly explained by lower volumes and prices in Colombia, our Free Cash Flow after total capital expenditures increased by 12%. I am optimistic that in spite of the headwinds we are facing in Colombia as a result of the very challenging competitive dynamics, during 2017 we will be able to continue delivering a strong Free Cash Flow as a consequence of the important reduction in our Strategic Capex and our disciplined working capital management.”
Read the article online at: https://www.worldcement.com/the-americas/27072017/cemex-latam-announces-decrease-in-sales/
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