Cemex reports 2Q results

Cemex reports 2Q results
Published: 27 July 2010

Cemex announced today that consolidated net sales decreased 3% in the second quarter of 2010 to approximately US$3.8bn versus the same period in 2009.

Operating EBITDA decreased 13% in the second quarter of 2010 to US$664m YoY. Consolidated cement sales volume increased 3% versus the same period in 2009, while ready-mix and aggregates sales volumes decreased 5% and 4%, respectively.

Lower sales in the quarter were primarily attributable to a lower contribution from our U.S. and European operations.  The infrastructure and residential sectors were the main drivers of demand in most of its markets.

Operating income decreased 23% during the quarter compared with the same period last year, reaching US$295m. Free cash flow, after maintenance capital expenditures, for the quarter was US$187m, down 59% from US$456m in the same quarter of 2009.

Fernando A. Gonzalez, executive vice president of Planning and Finance, said: "During this quarter we continued to make significant progress in our objective of reducing our debt. To this end, we paid close to US$650m of our debt ahead of schedule. Also, despite the prevailing headwinds, we believe that economic conditions in most of our markets have stabilised or reached inflection points, as evidenced by positive cement sales volume performance in several of our markets. Our ongoing cost reduction and rightsizing efforts throughout our operations will allow us to take advantage of the economy as it recovers.”

Net sales in Cemex’s operations in Mexico increased 8% in the second quarter of 2010, to US$923m, compared with US$853m in the second quarter of 2009. Operating EBITDA decreased 2%, to US$321 million versus the same period of last year.

Cemex’s operations in the United States reported net sales of US$684m in the second quarter of 2010, down 8% from the same period in 2009. Operating EBITDA decreased 76%, to US$17m, from US$70m in the second quarter of 2009.

In Europe, net sales for the quarter decreased 10%, to US$1.3bn, compared with US$1.5bn in the second quarter of 2009. Operating EBITDA decreased 22%, to US$158m, from US$204m in the second quarter of 2009.

Cemex’s operations in South/Central America and the Caribbean reported net sales of US$360m during the second quarter of 2010, representing a decline of 4% over the same period of 2009. Operating EBITDA was flat at US$128m versus the same period in 2009.

Second-quarter net sales in Africa and the Middle East were US$262m, down 2% from the same quarter of 2009. Operating EBITDA decreased 2%, to US$88m for the quarter versus the comparable period in 2009.

Operations in Asia reported a 17% increase in net sales, to US$142m, versus the second quarter of 2009, and Operating EBITDA was US$40m, up 21% from the same period in the previous year.