Solid second-quarter results for CEMEX

Chief executive says Q2 2016 figures demonstrate resilience of company’s portfolio 

CEMEX’s consolidated net sales reached US$3.7 billion during the second quarter of 2016, an increase of 6% on a like-to-like basis, compared with the same period in 2015, due to higher product prices, in local currency terms, in most of the company’s operations, as well as higher volumes in Mexico, the US and the European region.

Operating EBITDA increased 6% during the quarter to US$771 million versus the same period in 2015, while on a like-to-like basis operating EBITDA increased 16% in the same period, leading to an EBITDA margin of 20.9%.

Operating earnings before other expenses in the second quarter increased 24% on a like-to-like basis to US$539 million, while net income for the quarter increased 81% on a year-over-year basis, reaching US$205 million – the highest in a second quarter since 2008.

Commenting on the results, Fernando A. Gonzalez (pictured), chief executive officer, said: ‘Our solid second-quarter…results demonstrate the resilience of our portfolio, which largely comprises high-growth markets that are experiencing attractive supply-demand conditions.

‘We saw higher consolidated cement and aggregates volumes during the quarter as well as continued favourable results from our value-before-volume strategy, which led to a growth in sales of 6% on a like-to-like basis.

‘Operating EBITDA increased by 16%, also on a like-to-like basis, with a margin expansion of 1.3 percentage points. Free cash flow after maintenance capex reached US$478 million during the quarter, an increase of US$376 million from last year’s level.

‘Our pro-forma debt, reflecting our cash reserve and the proceeds from our Philippines transaction, among other items, is close to US$1.3 billion lower than that at the end of 2015. This is an additional step in our path to reach an investment-grade capital structure as soon as possible.’