MONTERREY, Mexico--(BUSINESS WIRE)--
CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE: CX), announced today that
consolidated net sales reached U.S.$4.2 billion during the second
quarter of 2014, an increase of 4% versus the comparable period in 2013.
Operating EBITDA increased by 1% during the quarter to U.S.$737 million
versus the same period in 2013. On a like-to-like basis and adjusting
for business days in our operations during the quarter, consolidated net
sales increased by 5% and operating EBITDA increased by 3% versus the
second quarter 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 the U.S. and our Mediterranean, South, Central
America and the Caribbean and Asia regions.
Operating earnings before other expenses, net, in the second quarter
increased by 1%, to U.S.$456 million.
Operating EBITDA increased during the quarter by 1% to U.S.$737
million. On a like-to-like basis and adjusting for business days,
operating EBITDA increased by 3% during the quarter versus the
comparable period in 2013.
Operating EBITDA margin decreased by 0.5 percentage points on a
year-over-year basis reaching 17.7%. On a like-to-like basis and
adjusting for business days in our operations, operating EBITDA margin
decreased by 0.3 percentage points on a year-over-year basis.
Controlling interest net income was U.S.$76 million during the
quarter, our first reported quarterly profit since 2009.
Free cash flow after maintenance capital expenditures for the quarter
was U.S.$63 million, compared with negative U.S.$86 million in the
same quarter of 2013.
CEMEX’s Consolidated Second-Quarter 2014 Financial
and Operational Highlights
Fernando A. GonzÁlez, Chief Executive Officer, said: “We are pleased
with the year-to-date trends we have seen in volumes for our three core
products and the continued success of our value-before-volume strategy.
We expect improved performance from our Mexican operations during the
second half of the year which should lead to stronger overall EBITDA
generation for the full year 2014.”
Consolidated Corporate Results
During the second quarter of 2014, controlling interest net income was
U.S.$76 million, an improvement over a loss of U.S.$152 million in the
same period last year.
Total debt plus perpetual notes decreased by U.S.$125 million during the
Geographical Markets Second-Quarter 2014 Highlights
Net sales in our operations in Mexico decreased 4% in the second
quarter of 2014 to U.S.$816 million, compared with U.S.$847 million in
the second quarter of 2013. Operating EBITDA decreased by 1% to U.S.$247
million versus the same period of last year.
CEMEX’s operations in the United States reported net sales of
U.S.$957 million in the second quarter of 2014, up 10% from the same
period in 2013. Operating EBITDA increased to U.S.$119 million in the
quarter, versus U.S.$80 million in the same quarter of 2013.
In Northern Europe, net sales for the second quarter of 2014
reached U.S$1.1 billion, a 5% increase compared with the second quarter
of 2013. Operating EBITDA was U.S.$121 million for the quarter, 12%
higher than the same period last year.
Second-quarter net sales in the Mediterranean regionwere
U.S.$449 million, 12% higher compared with U.S.$400 million during the
second quarter of 2013. Operating EBITDA increased 6% to U.S.$100
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.$562 million during the second quarter of
2014, remaining flat over the same period of 2013. Operating EBITDA
decreased 16% to U.S.$178 million in the second quarter of 2014, from
U.S.$211 million in the second quarter of 2013.
Operations in Asia reported a 2% decrease in net sales for the
second quarter of 2014, to U.S.$160 million, versus the second quarter
of 2013, and operating EBITDA for the quarter was U.S.$34 million, down
11% 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
Luis Garza, +52(81) 8888-4136
Source: CEMEX, S.A.B. de C.V.