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Cemex reports second-quarter 2016 results

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World Cement,

Cemex, S.A.B. de C.V. has announced that its consolidated net sales reached US$3.7 billion during the second quarter of 2016, an increase of 6% on a like-to-like basis for the ongoing operations and adjusting for currency fluctuations, versus the comparable period in 2015. Operating EBITDA increased 6% during the quarter to US$771 million versus the same period in 2015. On a like-to-like basis, operating EBITDA increased 16% in the same period.

Cemex’s consolidated second-quarter 2016 financial and operational highlights

  • The increase in consolidated net sales on a like-to-like basis was due to higher prices of our products, in local currency terms, in most of our operations, as well as higher volumes in Mexico, U.S., and our European region.
  • Operating earnings before other expenses, net, in the second quarter increased 11% and 24% on a like-to-like basis to US$539 million.
  • Controlling interest net income improved 81% during the second quarter of 2016 to US$205 million from US$114 million in the same period last year.
  • Operating EBITDA increased during the quarter 6% and, on a like-to-like basis, 16% to US$771 million.
  • Operating EBITDA margin grew by 1.3 percentage points on a year-over-year basis reaching 20.9%.
  • Free cash flow for the quarter was US$422 million, an improvement of US$359 million, compared with the same quarter of 2015.

Fernando A. Gonzalez, Chief Executive Officer, said: “Our solid second quarter and first half 2016 results demonstrate the resilience of our portfolio, which is largely comprised of high-growth markets that are experiencing attractive supply-demand conditions.

We saw higher consolidated cement and aggregates volumes during the quarter as well as continued favourable results from our value-before-volume strategy, which led to a growth in sales of 6% on a like-to-like basis. Operating EBITDA increased by 16% also on a like-to-like basis with a margin expansion of 1.3 percentage points. Free cash flow after maintenance capex reached US$478 million during the quarter, an increase of US$376 million from last year’s level.

Our pro-forma debt, reflecting our cash reserve and the proceeds from our Philippines transaction, among other items, is close to US$1.3 billion lower than that at the end of 2015. This is an additional step in our path to reach an investment-grade capital structure as soon as possible.”

Adapted from press release by Joseph Green

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