CEMEX report full-year 2019 results
Company experiences challenging year with weaker macroeconomic and market conditions
CEMEX have announced that on a like-for-like basis for ongoing operations and adjusting for currency fluctuations, consolidated net sales decreased 1% for the full year 2019 to US$13.1 billion, compared with 2018, while operating earnings before other expenses decreased by 21%, to US$1.3 billion, for the full year, on a like-for-like basis.
Operating EBITDA on a like-to-like basis decreased by 10% for the full year to US$2.4 billion, compared with the same period in 2018, whilst operating EBITDA margin for the full year decreased to 18.1% from 19.9% during 2018.
For the full year 2019, free cash flow after maintenance capital expenditures reached US$695 million and conversion of EBITDA into free cash flow after maintenance capex reached 29%. Controlling interest net income for the full year decreased to US$143 million from US$528 million in 2018.
During 2019, net debt plus perpetual notes was reduced by approximately US$400 million, representing approximately a 4% reduction from the debt level as of the end of 2018.
‘In a very challenging year with weaker macroeconomic and market conditions prevailing in several of our operations, we were able to limit the downside to our EBITDA and free-cash-flow generation through the decisive and proactive initiatives under our ‘A Stronger CEMEX’ programme,’ said Fernando A. Gonzalez, chief executive officer of CEMEX.
‘We are cautiously optimistic about the outlook for 2020, with expected improved market conditions in our two main markets, Mexico and the US, and continued favourable performance in our Europe region. We remain committed to our ‘A Stronger CEMEX’ initiatives, which will further help in strengthening our capital structure and reposition our portfolio for higher growth.’
Mr Gonzalez continued: ‘Climate change has been a priority for CEMEX for many years. Our efforts have brought significant progress to date, but we need to do more. This is why we have defined a more ambitious target for CO2 emissions by 2030: a reduction of 35% to ensure alignment with the Paris Agreement commitments. In addition, we are now establishing an ambition to deliver net-zero CO2 concrete by 2050.’
CEMEX will publish a detailed position paper on climate action on 18 February.