MONTERREY, Mexico--(BUSINESS WIRE)--
CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE: CX), announced today that
consolidated net sales reached U.S.$3.6 billion during the first quarter
of 2014, an increase of 8% versus the comparable period in 2013.
Operating EBITDA increased by 3% during the quarter to U.S.$535 million
versus the same period in 2013.
The increase in consolidated net sales was due to higher prices of our
products in local currency terms in most of our operations, as well as
higher volumes in all our regions.
Operating earnings before other expenses, net, in the first quarter
increased by 12%, to U.S.$268 million.
Operating EBITDA increased during the quarter by 3% to U.S.$535
million. During the quarter, higher maintenance and inventory drawdown
negatively affected operating EBITDA. Adjusting for these effects and
for the higher number of business days in our operations during the
quarter, operating EBITDA, on a like-to-like basis, increased by 15%.
Operating EBITDA margin decreased by 0.8 percentage points on a
year-over-year basis reaching 14.9%. Operating EBITDA margin, on a
like-to-like basis, adjusted for the higher maintenance, the inventory
drawdown, and the higher number of business days during the quarter
increased by 0.8 percentage points.
Free cash flow after maintenance capital expenditures for the quarter
was negative U.S.$454 million, compared with negative U.S.$483 million
in the same quarter of 2013.
CEMEX’s Consolidated First-Quarter 2014 Financial
and Operational Highlights
Fernando A. GonzÁlez, Executive Vice President of Finance and
Administration, said: “We are pleased with the growth in our operating
EBITDA during the quarter, on a like-to-like basis, adjusting for the
seasonal maintenance and inventory-drawdown effects, which we expect
will revert throughout the rest of the year. We also saw positive
dynamics in consolidated volumes and prices for our main products.
"We are also satisfied with the strong support we have received from the
global capital markets. During April, we issued U.S.$1 billion and €400
million in senior secured notes, with which we are retiring certain
Consolidated Corporate Results
During the first quarter of 2014, controlling interest net income was a
loss of U.S.$293 million, a deterioration over a loss of U.S.$281
million in the same period last year.
Total debt plus perpetual notes decreased by U.S.$300 million during the
Geographical Markets First-Quarter 2014 Highlights
Net sales in our operations in Mexico decreased 6% in the first
quarter of 2014 to U.S.$737 million, compared with U.S.$780 million in
the first quarter of 2013. Operating EBITDA decreased by 5% to U.S.$250
million versus the same period of last year.
CEMEX’s operations in the United States reported net sales of
U.S.$792 million in the first quarter of 2014, up 8% from the same
period in 2013. Operating EBITDA increased 48% to U.S.$28 million in the
quarter versus the same period of last year.
In Northern Europe, net sales for the first quarter of 2014
increased 21% to U.S.$912 million, compared with U.S.$756 million in the
first quarter of 2013. Operating EBITDA increased to U.S.$13 million in
the quarter, versus a loss of U.S.$17 million in the same period last
First-quarter net sales in the Mediterranean regionwere
U.S.$412 million, 19% higher compared with U.S.$347 million during the
first quarter of 2013. Operating EBITDA increased 11% to U.S.$81 million
for the quarter versus the comparable period in 2013.
CEMEX’s operations in South, Central America and the Caribbean
reported net sales of U.S.$538 million during the first quarter of 2014,
representing an increase of 8% over the same period of 2013. Operating
EBITDA remained flat at U.S.$187 million in the first quarter of 2014
compared with the first quarter of 2013.
Operations in Asia reported a 3% increase in net sales for the
first quarter of 2014, to U.S.$146 million, versus the first quarter of
2013, and operating EBITDA for the quarter was U.S.$26 million, up 8%
from 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 throughout the world. CEMEX has a rich history of improving
the well-being of those it serves through its efforts to pursue
innovative industry solutions and efficiency advancements and to promote
a sustainable future.
This press release contains forward-looking statements and
information that are necessarily subject to risks, uncertainties and
assumptions. Many factors could cause the actual results, performance or
achievements of CEMEX to be materially different from those expressed or
implied in this release, including, among others, changes in general
economic, political, governmental and business conditions globally and
in the countries in which CEMEX does business, changes in interest
rates, changes in inflation rates, changes in exchange rates, the level
of construction generally, changes in cement demand and prices, changes
in raw material and energy prices, changes in business strategy and
various other factors. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described
herein. CEMEX assumes no obligation to update or correct the information
contained in this press release.
Operating EBITDA is defined as operating income plus depreciation and
operating amortization. Free Cash Flow is defined as Operating EBITDA
minus net interest expense, maintenance and expansion capital
expenditures, change in working capital, taxes paid, and other cash
items (net other expenses less proceeds from the disposal of obsolete
and/or substantially depleted operating fixed assets that are no longer
in operation). Net debt is defined as total debt minus the fair value of
cross-currency swaps associated with debt minus cash and cash
equivalents. The Consolidated Funded Debt to Operating EBITDA ratio is
calculated by dividing Consolidated Funded Debt at the end of the
quarter by Operating EBITDA for the last twelve months. All of the above
items are presented under the guidance of International Financial
Reporting Standards as issued by the International Accounting Standards
Board. Operating EBITDA and Free Cash Flow (as defined above) are
presented herein because CEMEX believes that they are widely accepted as
financial indicators of CEMEX's ability to internally fund capital
expenditures and service or incur debt. Operating EBITDA and Free Cash
Flow should not be considered as indicators of CEMEX's financial
performance, as alternatives to cash flow, as measures of liquidity or
as being comparable to other similarly titled measures of other
CEMEX, S.A.B. de C.V.
Jorge PÉrez, +52(81)
Eduardo RendÓn, +52(81) 8888-4256
Source: CEMEX, S.A.B. de C.V.