Cemex, S.A.B. de C.V. announced that consolidated net sales reached $3.5 billion during the third quarter of 2017, representing an increase of 2 percent, or an increase of 1 percent on a like-to-like basis for the ongoing operations and adjusting for currency fluctuations, versus the comparable period in 2016. Operating EBITDA decreased by 8 percent during the quarter to $702 million versus the same period in 2016.
The increase in consolidated net sales on a like-to-like basis was due to higher prices for its products in Mexico and the United States, as well as higher cement volumes in the United States, Europe, and Asia Middle East and Africa regions.
Cemex operations in the United States reported net sales of $916 million in the third quarter of 2017, an increase of 2 percent on a like-to-like basis from the same period in 2016. Operating EBITDA increased 1 percent on a like-to-like basis to $160 million in the quarter.
Net sales in operations in Mexico increased 1 percent on a like-to-like basis in the third quarter of 2017 to $782 million, compared with $732 million in the third quarter of 2016. Operating EBITDA increased by 7 percent on a like-to-like basis to $302 million versus the same period of last year.
- Operating earnings before other expenses, net, in the third quarter decreased by 9 percent, to $494 million.
- Controlling interest net income during the quarter improved to $289 million from an income of $286 million in the same period last year.
- Operating EBITDA decreased during the quarter by 8 percent on a like-to-like basis to $702 million.
- Operating EBITDA margin decreased by 2.2 percentage points on a year-over-year basis reaching 19.8 percent, reflecting in part higher energy and freight costs, increase costs in raw materials in some of its ready-mix operations, as well as the impact of lower volumes.
- Free cash flow after maintenance capital expenditures for the quarter was $435 million, compared with $548 million in the same quarter of 2016.
Fernando A. Gonzalez, Cemex chief executive officer, said, “We are pleased with the double-digit, year-to-date growth in operating EBITDA in our two largest markets: Mexico and the U.S., which represent about two-thirds of our total EBITDA generation. In addition, our debt leverage during the quarter reached 3.98 times during the quarter. This is the first time that our leverage ratio falls below 4 times since the third quarter of 2008. This will continue contributing to further savings in our financial expenses. I’m particularly encouraged with our net income reaching $916 million during the first nine months of 2017. This is the highest year-to-date net income in almost 10 years.”