Market Overview

CEMEX Announces an Increase in Net Income of 32% During the Second Quarter and a Comprehensive Plan to Enhance Total Shareholder Return

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  • Operating EBITDA during the second quarter increased by 4% on a
    like-to-like basis versus the comparable period of 2017.
  • Net income increased 32% on a year-over-year basis, reaching US$382
    million during the second quarter.
  • "A Stronger CEMEX" plan announced to accelerate company's path to
    investment grade and deliver increased shareholder value.

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.

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, including the objectives under the "A Stronger
CEMEX" plan, 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. Readers are urged to read this press release and
carefully consider the risks, uncertainties and other factors that
affect CEMEX's business. The information contained in this press release
is subject to change without notice, and CEMEX is not obligated to
publicly update or revise forward-looking statements. Readers should
review future reports filed by CEMEX with the U.S. Securities and
Exchange Commission.

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
companies.

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