CEMEX, S.A.B. de C.V. announced results for the third quarter of 2020 with all regions showing increasing profitability. EBITDA not only recovered from COVID-19 disruptions of the prior quarter but grew double-digit on a year-over-year basis.
Net sales increased 3% on a like to like basis to $3.4 billion, while EBITDA for the quarter rose 15% to $728 million. EBITDA margin increased by 1.8 percentage points due to higher prices, energy tailwinds, and cost efficiencies under Operation Resilience.
Aggregates volume was flat at 35.4 million metric tons, cement sales by volume for all regions rose 3% to 17 million metric tons, and ready-mix concrete sales by volume fell 6% to 12.3 million cubic meters.
CEMEX’s operations in the United States reported net sales of $1.0 billion, an increase of 1% from the same period in 2019. Operating EBITDA increased by 7% to $199 million versus the same quarter of 2019.
CEMEX is reporting:
- Controlling Interest Net Income (loss) was a loss of $1.54 billion, due to a non-cash impairment of goodwill and idle assets that CEMEX previously announced.
- Net sales on a like-to-like basis increased 3%, to $3,436 million.
- Operating Earnings before Other Expenses, net, increased 20% to $453 million on a like-to-like basis.
- Operating EBITDA on a like-to-like basis increased 15% to $728 million, as compared to the same period in 2019.
- Operating EBITDA margin increased by 1.8pp, from 19.4% in the third quarter of 2019 to 21.2% this quarter.
- Free Cash Flow after Maintenance Capital Expenditures increased 58% to $458 million.
“We are pleased with our performance in the third quarter in which all regions participated in earnings recovery. Indeed, during the quarter, we experienced EBITDA recovery from the second quarter decline, due to COVID-19, as well as strong year-over-year growth. Operation Resilience played a key role in this performance,” said Fernando A. González, CEO of CEMEX. “We continued to derisk the business with the reduction in our net leverage ratio and the extension of our bank maturities with the successful refinancing of the Facilities Agreement.”
Net sales in Mexico increased 14% on a like-to-like basis to $723 million. Operating EBITDA, on a like-to-like basis, increased 16% to $246 million in the quarter, versus the same period of the previous year.
In its Europe, Middle East, Africa and Asia region, net sales increased by 2% on a like-to-like basis, compared with the same period of the previous year, reaching $1.2 billion. Operating EBITDA was $220 million for the quarter, 8% higher than the same period last year on a like-to-like basis.
CEMEX’s operations in the South, Central America and the Caribbean region reported net sales of $395 million, an increase of 1% on a like-to-like basis over the same period of 2019. Operating EBITDA increased by 31% on a like-to-like basis to $109 million in the third quarter of 2020, in contrast to the same quarter of 2019.