CEMEX report first-quarter growth

CEMEX have reported consolidated net sales of US$2.6 billion for the first quarter of 2005. The results, which include one month’s contribution from RMC for the four-week period ending 31 March, are 43% higher than in the first quarter of 2004.

Excluding the effect of the consolidation of RMC, net sales grew 8% to US$1,956 million, with all pre-RMC markets, apart from Mexico, experiencing increased sales during the quarter. Consolidated operating income for the first quarter was US$440 million, up 12% over the same period of 2004. Excluding the effect of RMC, operating income grew 6% to US$417 million.

Consolidated cement and ready-mixed concrete volumes also continued to increase throughout most of the company’s markets in the first quarter of 2005, fuelled mainly by infrastructure spending and residential building. Cement volume increased by 5% to 16 million tonnes, while ready-mixed concrete volume grew 74% to 9.8 million cubic metres. Consolidated aggregates volume increased by 130% to 19.9 million tonnes over the same period.

Hector Medina, CEMEX’s executive vice-president of planning and finance, described January to March 2005 as ‘a very important quarter’ for the development of the company. ‘On 1 March, we took a significant strategic step by completing the acquisition of RMC. This acquisition, and its integration into CEMEX, will provide us with greater global reach and stronger positions across the value chain, both of which will enable us to compete more effectively and will enhance our financial strength to continue to grow profitably throughout the business cycle,’ he said.

Meanwhile, CEMEX have announced a reshaping and restructuring of the company’s UK regional operations, in line with the company’s standardized business model, that could result in over 750 redundancies across the country. As this issue of QM went to press CEMEX were beginning a period of consultation with those employees likely to be affected by the proposed changes. A spokesperson for the company said the final structure would be confirmed and implemented once this consultation process had been completed in October.