Cemex has announced its 1Q13 results, which show a 5% y/y drop in consolidated net sales at US$3.3 billion. Operating EBITDA fell 8% to US$521 million. However, adjusting for the fewer business days in the quarter and for the favourable effect of changes to the pension plan in the Northern Europe region, the decline in net sales is less dramatic, at 2%, while operating EBITDA grew by 9%.
Lower volumes in Northern Europe, Mexico, the Mediterranean and south, Central America and the Caribbean contributed to the decline in net sales, which was partially offset by higher prices. In Northern Europe, net sales decreased 13% to US$756 million, while operating EBITDA was a loss of US$17 million, down from a gain of US$55 million in 1Q12. In the Mediterranean region, sales were down 8% y/y at US$347 million. Operations in South, Central America and the Caribbean reported a 5% decrease in 1Q net sales compared to 1Q12. However, operating EBITDA increased 5%.
Performing better were the US, which saw net sales increase 8% y/y, and Asia, which reported an 11% increase in net sales. Operating EBITDA also increased in both regions, with Asia seeing a massive 93% increase in 1Q13.
For the company as a whole, controlling interest net income and free cash flow after maintenance capital expenditures were both down in 1Q13. Total debt plus perpetual notes increased by US$355 million during the quarter.
Fernando A. González, Executive Vice President of Finance and Administration, said: “We are pleased with the operating EBITDA growth and operating EBITDA margin expansion during the quarter on a comparable basis. This is the seventh consecutive quarter with year-over-year improvement in operating EBITDA.
We are also seeing good results from the initial stages of our value-before-volume strategy as evidenced by the sequential increase in our consolidated prices for cement ready-mix and aggregates, in both, local-currency and U.S. dollar terms.”
Adapted from press release by Katherine Guenioui.
Read the article online at: https://www.worldcement.com/the-americas/29042013/cemex_variable_in_1q13_961/