Cemex posts huge net loss for 2010
Cemex’ turnover declined by 3.3% in 2010 to US$14,069.4m, while in Mexican peso terms the turnover came down rather more, or by 9.9%. EBITDA was down by 12.9% to US$2313.8m and the trading profit fell by 26.5% to US$855.8m. The net charge interest rose by 22.9% to US$1,252.06m, but the cost of ’other’ expenses was reduced though the pre-tax loss still jumped by 156.5% to US$904.1m. Rather than a tax credit, as in the previous year, a US$355.9m tax charge had to be borne, giving a net loss for the year of US$1303.6m compared with a US$103.6m net profit in 2009.
Net debt was reduced by 7.5% to US$17,729m, giving a gearing level of 118.5%. Capital expenditure was 14.6% lower at US$549m. Group cement shipments edged ahead by 0.9% to 65.65Mt, but sales of aggregates were down by 5.7% to 158.46Mt and ready-mixed concrete deliveries declined by 5.4% to 51Mm³.
In Mexico, turnover rose by 10.2% to US$3,434.8m, though in local currency the increase was a more modest 3%, and the EBITDA was off by 0.6% to US$1152.8m, though on an underlying basis the decline was more noticeable at 7%. The Mexican EBITDA margins declined from 37.3% to 33.6% and were no longer the highest in the group, but 49.8% of the group EBITDA was still generated in Mexico last year. Domestic cement deliveries declined by 4% in the year, and would have fallen further, had it not been for federal resources being provided to alleviate the effect of natural disasters.
US turnover declined by 11.8% to US$2,490.9m and the EBITDA dropped into a US$44.9m loss compared with a US$142.80m profit, and the trading loss widened by 43.6% to US$655.4m. In spite of poor weather in December, the group did a bit better than expected and the under-spending to date of public funds suggest better volumes in 2011.
Across Europe, turnover came down by 10.6% to US$4,793.2m and the EBITDA fell by 27.1% to US$434.2m, with cement volumes declining by 8% and prices by 5%. Cemex’ European operations managed to achieve a record usage of alternative fuels during 2010.
In South America, Central America and Caribbean, Cemex produced a turnover just 0.1% lower at US$1,443.8m, but the EBITDA was down by 9.9% to US$460.2m. This still made the region the second largest profit earner for the group behind Mexico. Cement deliveries declined by 3%.
The African and the Middle Eastern operations saw turnover decline by 1.3% to US$1,034.8m, but the EBITDA rose by 11.0% to US$369.5m. In Asia, turnover rose by 8.8% to US$515.3m and the EBITDA improved by 6.9% to US$122.6m. Cement volumes increased by 9% last year and prices averaged a 1% increase. Published under Cement News
