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CEMEX report strong underlying Q3 results

Cemex

Fourth consecutive quarter with positive net income and highest quarterly net income since 2008

CEMEX have reported consolidated net sales of US$3.6 billion during the third quarter of 2016 – an increase of 4% on a like-for-like basis, compared with the comparable period in 2015 – due to higher prices in most of the company’s operations and higher volumes in Mexico and the Europe, Asia, Middle East and Africa regions.

Operating EBITDA increased by 15% during the quarter and by 22% on a like-for-like basis, to US$780 million, leading to a 3.2 percentage point EBITDA margin expansion to 21.8% on a year-over-year basis. Both EBITDA and EBITDA margin were the highest in a quarter since 2008.

Net income for the third quarter improved by US$330 million to US$286 million from a loss of US$44 million in the same period last year. This was the fourth consecutive quarter with a positive net income and the highest net income in a quarter since 2008.

Free cash flow after maintenance capex for the quarter was US$548 million, US$112 million higher than in the same period last year, while total debt has been reduced by US$1.4 billion since the beginning of the year.

Commenting on the results, CEMEX’s chief executive officer, Fernando A. Gonzalez, said: ‘During the third quarter, we continued to deliver strong underlying operational and financial results by remaining focused on the variables we can control. Our year-to-date operating EBITDA grew 17% on a like-for-like basis, with a 5% growth in sales. This was the highest year-to-date EBITDA growth in a decade.

‘Our free cash flow after maintenance capex reached US$1.05 billion year to date, an increase of US$757 million from last year’s level, reflecting our initiatives to reduce financial expenses and improve working capital. Conversion of operating EBITDA into free cash flow after maintenance capex reached 49% during the first nine months of the year.

‘In addition, total debt is close to US$1.4 billion dollars lower than that at the end of 2015. Since 2014, we have reduced total debt by US$3.5 billion, or about 20% of the then outstanding debt. We continue with our initiatives to improve our debt maturity profile and strengthen our capital structure.’

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