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Challenging third quarter for CEMEX

CEMEX

Company’s third-quarter results negatively impacted by weaker macroeconomic conditions 

CEMEX have announced that, on a like-to-like basis for their ongoing operations and adjusting for foreign exchange fluctuations, consolidated net sales decreased by 1%, to US$3.5 billion, during the third quarter of 2019 compared with the same period in 2018.

According to CEMEX, the decrease in quarterly consolidated net sales was due to lower volumes mainly in Mexico and the company’s Asia, Middle East and Africa region, but was partially offset by improved prices for products, in local currency terms, in most regions.

Operating earnings before other expenses decreased by 14%, on a like-to-like basis, in the third quarter of 2019, to US$409 million, while controlling interest net income during the quarter was US$187 million, up from US$169 million in the same period of 2018.

Operating EBITDA decreased by 7%, on a like-to-like basis, during the quarter, to US$681 million, on a year-over-year basis, while operating EBITDA margin during the quarter decreased to 19.5% from 20.6% in the same period in the previous year.

Fernando A. Gonzalez, Chief Executive Officer of CEMEX, said: ‘In the third quarter, our business continued to be challenging and was negatively impacted by the weaker macroeconomic conditions in several of the markets we serve.

‘In Mexico, we believe demand for our products is bottoming out and we are cautiously optimistic on renewed activity going forward given the expected announcement of a new infrastructure programme.

‘In the US, EBITDA improved during the quarter as a result of favourable pricing, and despite weaker volumes mainly due to weather and competitive dynamics in some of our markets.

‘In our Europe and AMEA regions, we are pleased with the solid growth in EBITDA and expansion in margins driven primarily by favourable pricing and our cost-reduction initiatives.

‘As part of our A Stronger CEMEX plan, we are committed to further strengthen our balance sheet through an important reduction in our debt and repositioning our portfolio for higher growth.’ 

Net sales in CEMEX’s operations in Mexico, on a like-to-like basis, decreased 12% in the third quarter of 2019 to US$716 million. Operating EBITDA, on a like-to-like basis, declined by 20% to US$240 million in the quarter, compared with the same period of last year. 

CEMEX’s operations in the US reported net sales of US$1,044 million in the third quarter of 2019, an increase of 5% from the same period in 2018. Operating EBITDA increased by 2% to US$205 million from US$202 million in the same quarter of 2018. 

In Europe, net sales for the third quarter of 2019 increased by 2% on a like-to-like basis to US$856 million, compared with the third quarter of 2018. Operating EBITDA was US$141 million for the quarter, 7% higher than the same period last year, on a like-to-like basis. 

Operations in Asia, Middle East and Africa, on a like-to-like basis, reported a 2% decline in net sales for the third quarter of 2019, to US$365 million, versus the same quarter of 2018. Operating EBITDA for the quarter was US$59 million, 4% higher, on a like-to-like basis, than the same period last year. 

CEMEX’s operations in South, Central America and the Caribbean reported net sales of US$417 million during the third quarter of 2019, representing a like-to-like decrease of 1% over the same period of 2018. Operating EBITDA, on a like-to-like basis, decreased by 6% to US$89 million in the third quarter of 2019, compared to the same quarter of 2018.

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