Cemex announced that, on a like-to-like basis for the ongoing operations and adjusting for foreign exchange fluctuations, consolidated net sales in the second quarter decreased by 3%, reaching $3.5 billion versus the comparable period in 2018. Operating EBITDA decreased by 14% on a like-to-like basis during the second quarter of 2019 to $644 million on a year-over-year basis.
The company states that:
- The decrease in quarterly consolidated net sales was due to lower volumes in all regions except for the United States, partially offset by higher prices for its products, in local-currency terms in all of its regions.
- Operating earnings before other expenses, net, decreased by 24%, on a like-to-like basis, in the second quarter, to $377 million.
- Controlling interest net income during the quarter was $155 million, from $376 million in the same period of 2018.
- Operating EBITDA decreased by 14%, on a like-to-like basis, during the quarter on a year-over-year basis, to $644 million.
- Operating EBITDA margin during the quarter decreased to 18.3% from 20.6% in the same period in the previous year.
- Free cash flow after maintenance capital expenditures for the quarter was $217 million.
Fernando A. Gonzalez, chief executive officer of Cemex, said, “The second quarter was impacted by the challenging global economic environment. Weaker-than-expected industrial activity and continued trade conflicts have resulted in lower investment in several of our markets. Mexico in particular has been affected by these factors which led to lower-than-expected volumes. Adverse weather in the United States also translated into muted activity during the quarter. In contrast, we are very pleased with the favorable performance of our Europe region.
“We continue our focus on pricing strategies and operating efficiencies in order to grow our EBITDA and expand our EBITDA margin,” Gonzalez continued. “We anticipate our EBITDA generation to increase during the second half of the year, driven by expected improved government spending in Mexico, better pricing levels in addition to higher cement volumes in the United States and Europe, moderation in energy headwinds, as well as higher contribution from our A Stronger Cemex plan.”