Cemex issued the following announcement on July 26.
CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE: CX), announced today that, on a like-to-like basis for the ongoing operations and adjusting for currency fluctuations, consolidated net sales increased by 7% during the second quarter of 2018 to US$3.8 billion versus the comparable period in 2017. Operating EBITDA on a like-to-like basis increased by 4% during the second quarter of 2018 to US$714 million versus the comparable period in 2017.
CEMEX’s Consolidated Second-Quarter 2018 Financial and Operational Highlights
The increase in quarterly consolidated net sales was due to higher prices of our products, in local currency terms in all of our regions, as well as higher volumes in Mexico, the U.S., and our Europe and Asia, Middle East & Africa regions.
Operating earnings before other expenses, net, in the second quarter increased by 8%, to US$504 million on a like-to-like basis.
Controlling interest net income during the quarter was US$382 million from an income of US$288 million in the same period of 2017.
Operating EBITDA on a like-to-like basis increased by 4% during the quarter compared to the same period in 2017, to US$714 million.
Operating EBITDA margin during the quarter decreased to 18.8% from 19.5% in the same period of 2017.
Free cash flow after maintenance capital expenditures for the quarter decreased by 26% to negative US$260 million, compared to the same quarter of 2017.
Fernando A. Gonzalez, Chief Executive Officer of CEMEX, said: “We are encouraged by the very favorable volume dynamics we saw in most of our portfolio during the quarter, with improvements in pricing which should translate into higher profitability during the second half of the year. Our operations in the U.S. and Europe indicate a strong sequential growth in volumes resulting from strong demand and pent-up activity after adverse weather conditions in the first quarter, as well as improved pricing dynamics. In Mexico, we are pleased with the year-over-year, double-digit growth in ready-mix and aggregates volumes and high-single-digit increase in prices. In addition, in our Asia, Middle East and Africa region, we saw a high-single-digit growth in cement volumes in the Philippines and Egypt with favorable sequential pricing dynamics.
Our net income increased by 32% on a year-over-year basis, reaching US$382 million during the quarter. In addition, our total debt plus perpetual notes declined by US$462 million during the quarter, and by US$6.6 billion since the end of 2013.
With the objective of accelerating our path to investment grade and enhancing total shareholder return, today we are announcing «A Stronger CEMEX», a plan designed to reposition our portfolio toward higher growth. During the next 2.5 years, we will work to optimize our portfolio by focusing on markets with the greatest long-term growth potential and selling between US$1.5 and 2 billion of assets. We will also implement actions to achieve US$150 million in cost savings as an opportunity to continue improving our profitability. Furthermore, we will reduce our total debt by US$3.5 billion by the end of 2020, and we will return capital to our shareholders through an annual cash dividend starting with US$150 million in 2019.”
Consolidated Corporate Results
During the second quarter of 2018, controlling interest net income was US$382 million, versus an income of US$288 million in the same period last year.
Total debt plus perpetual notes decreased by US$462 million during the quarter.
Geographical Markets Second-Quarter 2018 Highlights
Net sales in our operations in Mexico, on a like-to-like basis, increased 13% in the second quarter of 2018 to US$867 million. Operating EBITDA, on a like-to-like basis increased by 8% to US$311 million in the quarter, versus the same period of last year.
CEMEX’s operations in the United States reported net sales of US$989 million in the second quarter of 2018, an increase of 9% on a like-to-like basis from the same period in 2017. Operating EBITDA increased by 11% on a like-to-like basis to US$189 million versus the same quarter of 2017.
CEMEX’s operations in South, Central America and the Caribbean reported net sales of US$461 million during the second quarter of 2018, remaining flat on a like-to-like basis over the same period of 2017. Operating EBITDA decreased by 9% to US$110 million in the second quarter of 2018, from US$120 million in the same quarter of 2017.
In Europe, net sales for the second quarter of 2018 increased by 6% on a like-to-like basis to US$1,040 million from the second quarter of 2017. Operating EBITDA was US$121 million for the quarter, 5% higher than the same period last year on a like-to-like basis.
Operations in Asia, Middle East and Africa reported a 10% increase in net sales for the second quarter of 2018, to US$353 million, versus the same quarter of 2017 on a like-to-like basis. Operating EBITDA for the quarter was US$52 million, 8% higher on a like-to-like basis than the same period last year.
CEMEX is a global building materials company that provides high quality products and reliable service to customers and communities in more than 50 countries. CEMEX has a rich history of improving the well-being of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future.
Original source can be found here.
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