Cemex, S.A.B. de C.V. announced that, on a like-to-like basis for ongoing operations and adjusting for currency fluctuations, consolidated net sales increased by 4 percent during the fourth quarter of 2016 to $3.2 billion, and increased 4 percent for the full year 2016 to $13.4 billion versus the comparable periods in 2015.
Cemex’s operations in the United States reported net sales of $880 million in the fourth quarter of 2016, flat on a like-to-like basis from the same period in 2015.
Other fourth-quarter and full-year 2016 highlights:
- The increase in quarterly consolidated net sales on a like-to-like basis was due to higher prices of products, in local currency terms, in most of its operations, as well as higher volumes in Mexico, the United Kingdom and Germany.
- Operating earnings before other expenses, net, in the fourth quarter increased by 12 percent to $453 million and increased 14 percent, to $1.9 billion, for the full-year 2016.
- Controlling interest net income during the quarter was almost 50 percent higher, reaching $214 million from an income of $144 million in the same period last year. Also, controlling interest net income for the full year improved to $750 million from an income of $75 million in 2015.
- Asset sales reached approximately $2 billion, of which slightly above $1 billion closed during 2016. These assets are being sold at double-digit multiples on average.
Fernando A. Gonzalez, chief executive officer, said, “2016 was a very good year for Cemex. Despite continued volatility and uncertainty in the markets, we were able to deliver strong underlying operational and financial results by remaining focused on the variables that we control. As a result of our favorable volume and price performance, sales increased by 4 percent in 2016, while operating EBITDA grew by 15 percent, on a like-to-like basis. Our free cash flow after maintenance capex was close to $1.7 billion, almost double last year’s level. This was driven by higher EBITDA generation as well as our initiatives to reduce interest expense, maintenance capex and working capital investment.”