Cemex has announced that consolidated net sales increased by 5% during the third quarter of 2011 to approximately US$3.9 billion versus the comparable period in 2010. Operating EBITDA increased by 1% during the period to US$658 million versus the 2010 figure.
Highlights of the press release:
- The increase in consolidated net sales was due to higher sales mainly from the company’s operations in Northern Europe, South/Central America and the Caribbean, and the US.
- The infrastructure and residential sectors were the main drivers of demand in most of the markets.
- Free cash flow after maintenance capital expenditures for the quarter was US$263 million, compared with US$250 million in the same quarter of 2010.
- Operating income in the third quarter increased by 7%, to US$305 million, from the comparable period in 2010.
Fernando A. González, Executive Vice President of Finance and Administration, said: “This is the fourth consecutive quarter of top-line growth in our results. We also saw stable consolidated pricing on a quarter-on-quarter basis in local-currency terms. We are particularly pleased with the quarterly performance of our operations in the Northern Europe and the South, Central American and Caribbean regions.
We have raised US$80 million in asset sales during the first nine months of this year and expect to raise an additional US$100 – US$200 million during the fourth quarter. We estimate total proceeds from asset sales will reach US$1 billion by the end of 2012.
We also continue to be confident in our ability to meet all of our financial obligations. We have also prepaid all of maturities under our Financial Agreement until December 2013 and proactively bolstered our liquidity needs.”
Consolidated corporate results
During the third quarter of 2011, the controlling interest net loss was primarily driven by material adverse changes in the currency and equity markets. Of the US$732 million year-over-year difference in controlling interest net loss, about 70% is non cash. In addition, about 85% of this difference is explained by two lines in the income statement:
- A foreign exchange loss, which during the quarter was US$217 million and due mainly to the depreciation of the € and the Mexican P versus the US$. Most of these losses are non-cash and are related primarily to intercompany operations.
- A loss on financial instruments of US$339 million during the quarter, related mainly to equity derivatives on Cemex shares, and half of which is also non cash.
Geographical markets third quarter 2011 highlights
Net sales in the company’s operations in Mexico decreased 1% in the third quarter of 2011 to US$856 million, compared with last year’s US$868 million. Operating EBITDA of US$285 million was flat versus the same period of last year.
Cemex’s operations in the US reported net sales of US$713 million in the third quarter of 2011, up 4% from the same period in 2010. Operating EBITDA was a loss of US$10 million in the quarter.
In Northern Europe, net sales for the third quarter of 2011 increased 9% to US$1.30 billion, compared with US$1.19 billion in the third quarter of 2010. Operating EBITDA was US$170 million for the quarter, 13% higher than the same period last year.
Third-quarter net sales in the Mediterranean region were US$424 million, 5% lower compared with US$448 million during the third quarter of 2010. Operating EBITDA decreased 28% to US$104 million for the quarter versus the comparable period in 2010.
Cemex’s operations in South/Central America and the Caribbean reported net sales of US$453 million during the third quarter of 2011, representing an increase of 24% over the same period of 2010. Operating EBITDA increased 33% to US$144 million in the third quarter of 2011, from US$108 million in the third quarter of 2010.
Operations in Asia reported a 5% increase in net sales for the third quarter of 2011, to US$130 million, versus the third quarter of 2010, and operating EBITDA for the quarter was US$20 million, down 32% from the same period last year.
To read the full report please go to http://www.cemex.com/MediaCenter/PressReleases/PressRelease20111026.aspx
Read the article online at: https://www.worldcement.com/the-americas/27102011/cemex_reports_q3_2011_results/