Cemex, S.A.B. de C.V. announced that, on a like-to-like basis for the ongoing operations and adjusting for currency fluctuations, consolidated net sales increased by 8 percent during the third quarter of 2018 to $3.7 billion versus the comparable period in 2017. Cemex’s operations in the United States increased sales 11 percent.
“The increase in quarterly consolidated net sales was due to higher prices of our products, in local currency terms in most of our regions, as well as higher volumes in Mexico, the United States, and our Europe and Asia, Middle East and Africa regions,” the company said.
- Operating earnings before other expenses, net, in the third quarter increased by 2 percent, to $490 million on a like-to-like basis.
- Controlling interest net income during the quarter was $174 million, compared with an income of $289 million in the same period of 2017.
- Operating EBITDA on a like-to-like basis increased by 2 percent during the quarter compared with the same period in 2017, reaching $704 million.
- Operating EBITDA margin during the quarter decreased to 18.8 percent from 19.9 percent in the same period of 2017.
- Free cash flow after maintenance capital expenditures for the quarter decreased by 10 percent to $390 million, compared with the same quarter in 2017.
Fernando A. Gonzalez, chief executive officer of Cemex, said: “We are encouraged by our favorable results during the quarter, with top-line growth of 8 percent on a like-to-like basis, and operating EBITDA increasing by 2 percent. These results were underpinned by healthy volume and pricing dynamics in our three core products in most of our portfolio. We are pleased with our operations in Mexico and the United States, with strong growth in year-over-year volumes for our three core products and improved prices. In our Europe region, prices continued to improve with growth in ready-mix and aggregates volumes. In addition, in our Asia, Middle East and Africa region we saw volumes and prices in the Philippines rising in the mid-single digits as well as a double-digit increase in cement prices in Egypt.
“We also made progress on our ‘A Stronger Cemex’ plan,” Gonzalez said. “During the quarter, we sold more than 60 million dollars in assets. We also reduced total debt plus perpetuals by $254 million. On our cost-reduction efforts, we expect to implement our different initiatives by the end of this year so the full benefit of these actions is reflected in next year’s EBITDA. And lastly, we intend to propose at our annual shareholders’ meeting next year a cash dividend program for our shareholders starting in 2019 with an amount of 150 million dollars.”
- Cemex’s operations in the United States reported net sales of $999 million in the third quarter of 2018, an increase of 11 percent on a like-to-like basis from the same period in 2017.
- Net sales for operations in Mexico, on a like-to-like basis, increased 15 percent in the third quarter of 2018 to $857 million.
- Cemex’s operations in South, Central America and the Caribbean reported net sales of $442 million during the third quarter of 2018, a decline of 1 percent on a like-to-like basis over the same period of 2017.