Cemex nine month turnover down

Cemex nine month turnover down
Published: 27 October 2010

In the first nine months of 2010, Cemex’ turnover declined by 4.6 per cent to US$10,576.7m while the EBITDA was off by 15.9 per cent to US$1829.1m. At the trading level, the profit reduction was 31.1 per cent to US$727.8m and the net interest charge was up by 41.3 per cent to US$934.5m.

The Mexican share of turnover stood at 24 per cent, while for the EBITDA the share was 47.3 per cent compared with 39 per cent a year earlier.  Europe accounted for 34.6 per cent of turnover and for 19.5% of the EBITDA.  This time South & Central America produced a slightly larger share of the EBITDA than Europe at 19.9 per cent. The United States represented 18.1 per cent of turnover, but made a small loss at the EBITDA level.  As a result of pressure on Mexican margins, which declined from 38 per cent to 34.2 per cent. Africa & the Middle East now has the highest margins in the group at 35.6 per cent. 

Cement shipments in the nine month period were 0.2% lower at 49.54Mt, while aggregates deliveries declined by 6.5% to 119.76Mt and the ready-mixed concrete volume was down by 7.7% to 38Mm³.

The US turnover fell by a further 13.7 per cent to US$1918.8m, after a 40.4% drop in the first nine months of last year and the EBITDA dropped into negative territory with a US$8.8m loss, compared with a profit of US$147.3m.  At the trading level, the loss jumped by 45.8% to US$480.9m.  Cement deliveries declined by a further 5% in the nine months, but did actually improve by 2% in the third quarter.

Cemex’ European turnover came off by 9.3 per cent to US$3,661.6 and the EBITDA fell by 26 per cent to US$355.8m and the trading profit dropped by 51.3% to US$109.8m. Deliveries of grey cement declined by nine per cent in the nine months. In Spain, cement shipments came off by a further 25 per cent, having dropped by 43 per cent in the first nine months of last year.

The African and the Middle Eastern turnover was off by 2.1 per cent to US$771.4m but the EBITDA improved by 3.8 per cent to US$274.7m.  Egyptian cement shipments improved by three per cent.  Cement deliveries in the region were stable, while average prices improved by some four per cent.