Cemex has reported an 8% rise in consolidated net sales to US$3.6 billion for 1Q14, driven by greater volumes across the regions in which the company operates and by higher product prices in local currency terms in most areas. Operating EBITDA improved by 3% to US$535 million. It was negatively affected by higher maintenance and inventory drawdown. Adjusting for these factors and for more business days during the quarter, operating EBITDA grew by 15% on a like-for-like basis. Operating earnings before other expenses, net, reached US$269 million, up 12%.
Cemex’s total debt and perpetual notes fell by US$300 million during the first three months of 2014. Controlling interest net income registered a loss of US$293 million in 1Q14 compared to a loss of US$281 million in 1Q13.
“We are pleased with the growth in our operating EBITDA during the quarter, on a like-to-like basis, adjusting for the seasonal maintenance and inventory-drawdown effects, which we expect will revert throughout the rest of the year. We also saw positive dynamics in consolidated volumes and prices for our main products,” commented Fernando A. González, Executive Vice President of Finance and Administration. “We are also satisfied with the strong support we have received from the global capital markets. During April, we issued US$1 billion and €400 million in senior secured notes, with which we are retiring certain higher-coupon debt.”
Cemex has reported largely positive results across its regional markets. In Northern Europe, net sales grew from US$756 million in 1Q13 to US$912 million in the same period this year. Operating EBITDA also improved, rising from a -US$17 million to +US$13 million. The company’s Mediterranean operations achieved a 19% increase in net sales and an 11% increase in operating EBITDA. In Asia, net sales reached US$146 million, up 3% on 1Q13, and operating EBITDA grew by 8%.
Net sales came in at US$538 million in 1Q14 in South, Central America and the Caribbean, 8% higher than the comparable period in 2013. At US$187 million, operating EBITDA for the region remained in line with 1Q13. In the US, operating EBITDA improved by 48% to US$28 million and net sales rose by 8% to US$792 million. However, net sales fell by 6% from US$780 million to US$737 million in Mexico. Operating EBITDA also declined in the region, dropping by 5% to US$250 million.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/30042014/highlights_from_1q14_cemex_results_119/