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 remained flat during the fourth quarter of 2019 at $3.3 billion and decreased 1% for the full-year 2019 to $13.1 billion versus the comparable periods in 2018.
The performance of quarterly consolidated net sales on a like-to-like basis was due to higher prices for its products, in local-currency terms, in all regions, that were offset by lower volumes, the company said.
Operating earnings before other expenses, net, in the fourth quarter decreased 31% to $282 million and decreased by 21%, to $1.3 billion, for the full-year 2019, both on a like-to-like basis.
Controlling interest net loss during the quarter was $238 million, compared with a loss of $37 million in the same period of 2018. Controlling interest net income for the full year decreased to $143 million from $528 million in 2018.
“In a very challenging year with weaker macroeconomic and market conditions prevailing in several of our operations, we were able to limit the downside to our EBITDA and free-cash-flow generation through the decisive and proactive initiatives under our ‘A Stronger CEMEX’ program,” said Fernando A. Gonzalez, chief executive officer of CEMEX. “We are cautiously optimistic about the outlook for 2020, with expected improved market conditions in our two main markets, Mexico and the United States, and continued favorable performance in our Europe region. We remain committed to our ‘A Stronger CEMEX’ initiatives, which will further help in strengthening our capital structure and reposition our portfolio for higher growth.
“Climate change has been a priority for CEMEX for many years,” he said. “Our efforts have brought significant progress to date, but we need to do more. This is why we have defined a more ambitious target for CO2 emissions by 2030: a reduction of 35% to ensure alignment with the Paris Agreement commitments. In addition, we are now establishing an ambition to deliver net-zero CO2 concrete by 2050. We will publish a detailed position paper on climate action on February 18.”
Net sales in Mexico decreased 11% on a like-to-like basis in the fourth quarter of 2019 to $722 million. Operating EBITDA, on a like-to-like basis, decreased 21% to $227 million in the quarter, versus the same period of the previous year.
CEMEX’s operations in the United States reported net sales of $935 million in the fourth quarter of 2019, an increase of 8% on a like-to-like basis from the same period in 2018. Operating EBITDA decreased by 18% on a like-to-like basis to $149 million versus the same quarter of 2018.
CEMEX’s operations in South, Central America and the Caribbean reported net sales of $399 million during the fourth quarter of 2019, a decline of 3% on a like-to-like basis over the same period of 2018. Operating EBITDA increased by 8% on a like-to-like basis to $101 million in the fourth quarter of 2019, in contrast to the same quarter of 2018.
In Europe, net sales for the fourth quarter of 2019 decreased by 1% on a like-to-like basis, compared with the same period of the previous year, reaching $741 million. Operating EBITDA was US$98 million for the quarter, 14% higher than the same period last year on a like-to-like basis.
Net sales in Asia, Middle East and Africa decreased 4% in the fourth quarter of 2019 to $354 million versus the same quarter of 2018 on a like-to-like basis. Operating EBITDA for the quarter was $50 million, 1% higher on a like-to-like basis than the same period last year.