Cemex: 9M13 turnover edges ahead

Cemex: 9M13 turnover edges ahead
Published: 25 October 2013


For the first nine months of the year, Cemex' turnover edged ahead by 0.7 per cent to  US$11,352.7m but but EBITDA eased by 0.3 per cent to US$2001.2m as Mexico continues to drag on the company's performance although substantial improvements are seen in the US.

The trading profit improved by 12.3 per cent to US$926.3m while the net interest charge increased by 8.3 per cent to US$1,139.4m.  The pre-tax loss was reduced by 27 per cent to US$174.3m, but a 53 per cent increase in the tax charge led to a 39.7 per cent increase in the net attributable loss to US$586.7m.

Net debt at the end of September was 3.7 per cent lower than a year earlier at US$16,235m, giving a gearing level of 151 per cent, compared with 146.8 per cent a year earlier. However, only three per cent of the gross debt is short term. The number of employees as the end of September was five per cent lower at 42,853.

Mexico accounted for 21.2 per cent of the turnover and the Mexican share of the EBITDA was 35.5 per cent compared with 45.5 per cent a year earlier. Northern Europe represented 26.5 per cent of turnover and for 11.8 per cent of the EBITDA, while the Mediterranean region represented 9.9 per cent of turnover and 11.5 per cent of the EBITDA. South & Central America produced 14.6 per cent of the turnover and 28.4 per cent of the EBITDA, while Asia contributed 3.9 per cent of turnover and 4.6 per cent of the EBITDA. The United States, finally, represented 22 per cent of turnover but just 8.3 per cent of the EBITDA, which is a substantial improvement on the 1.5 per cent a year ago. Cement shipments in the nine month period were 2.8 per cent lower at 48.68Mt while aggregates deliveries recovered by 1.2 per cent to 120.31Mt and ready-mixed concrete deliveries declined by 0.6 per cent to 40.95Mm³.

The Mexican turnover declined by a further 5.6 per cent to US$2,401.9m and the EBITDA fell by 16.4 per cent to US$761.4m, with the trading profit being down by 19.1 per cent to US$616.3m. Domestic deliveries of grey cement were down by 10 per cent with the third quarter showing a 13 per cent drop as demand from both infrastructure and housing fell, though commercial and industrial demand did improve. Cement prices came off by two per cent in local currency but rose by one per cent in US dollar terms. The aggregates volume did improve by two per cent and domestic prices improved by one per cent, while in US dollars there as a five per cent increase. Ready-mixed concrete shipments declined by seven per cent but local currency prices were one per cent higher on average.   

The US turnover continued to recover and rose by 8.2 per cent to US$2495.4m and  EBITDA jumped from US$29.8m to US$177.5m. At the trading level, the loss was more than halved, falling from US$347.4m to US$169.1m. Housebuilding was the primary positive factor. Grey cement deliveries showed a four per cent improvement in the nine months, with the third quarter showing a seven per cent advance. Shipments of aggregates improved by a six per cent, in spite of a four per cent volume reduction in the third quarter, with prices being ahead by four per cent in the year to date and by 10 per cent in the third quarter. In ready-mixed concrete, deliveries improved by 10 per cent and average prices by six per cent.

Cemex' Northern European turnover declined by a further 1.7 per cent to US$3,012.1 and the EBITDA fell by 22 per cent to US$252.9m, but the trading profit dropped 38.8 per cent to US$85.1m. Deliveries of grey cement declined by four per cent in the nine months, but there was a two per cent improvement in the third quarter. Aggregates shipments across the region were off by one per cent, though a three per cent recovery was seen in the third quarter. Ready-mixed concrete deliveries fell by five per cent, though began to recover in the third quarter. Cement deliveries improved by seven per cent in Great Britain, were stable in Germany and dropped by 22 per cent in Poland. Cement prices declined by one per cent in both Germany and Poland and came off by three per cent in Great Britain. In aggregates, volumes were off by two per cent in Great Britain and Germany and by 16 per cent in Poland but improved by three per cent in France. Aggregates prices fell by another 12 per cent in Poland, but improved by two per cent in Great Britain, Germany and France. Ready-mixed concrete volumes rose by four per cent in Great Britain, but declined by six per cent in Germany, by nine per cent in France and by 11 per cent in Poland. Ready-mixed concrete prices improved by four per cent in Germany, by two per cent in France and by one per cent in Britain, but declined by six per cent in Poland. A proposed reorganisation of Cemex' and Holcim's interests in Germany, the Czech Republic and Spain is currently being investigated by the European competition authorities. 

The Mediterranean region managed to increase turnover by 1.7 per cent to US$1,121.8m, but the EBITDA declined by 16 per cent to US$246m and the trading profit came down by a fifth to US$165.9m. Overall regional domestic cement deliveries came off by 2 per cent, but the average selling price in local currency did improve by 7 per cent. In Spain, domestic cement deliveries dropped by another 29 per cent, but the average price still improved by 5 per cent. Spanish aggregates shipments dropped by 45 per cent and the price eased by 5 per cent, while in ready-mixed concrete deliveries fell by 29 per cent and prices by seven per cent. In Egypt cement volumes recovered by seven per cent and local prices rose by 12 per cent, while in aggregates volumes were 16 per cent lower, but the average price improved by 12 per cent. Egyptian ready-mixed concrete deliveries were 12 per cent lower, but prices rose by 15 per cent. The regional numbers were again helped by better performances in the United Arab Emirates and from the ready-mixed concrete and aggregates operations in Israel.

The Cemex operations in South America, Central America and the Caribbean increased turnover by 5.3 per cent to US$1,657.0m and the EBITDA improved by a further 12.1 per cent to US$609.7m and the trading emerged 13.5 per cent higher at US$546.5m. Cement volumes improved by two per cent and prices in local currency were three per cent higher, though unchanged in US dollar terms. Aggregates volumes five per cent higher and local prices rose by an average three per cent, while in ready-mixed concrete, volumes improved by one per cent and prices by eight per cent. In Colombia, the biggest market, cement volumes were off by one per cent but local prices rose by six per cent, while in aggregates volumes rose by five per cent and prices by one per cent, while in ready-mixed concrete, both volumes and prices improved by nine per cent. In Panama cement volumes rose by four per cent and prices by one per cent. 

Asian turnover rose by 10.2 per cent to US$443.6m and the EBITDA forged ahead 40.5 per cent to US$98.6m. Cement volumes improved by six per cent across the region, and by nine per cent in the Philippines, the largest contributor. In the third quarter, the Philippines cement deliveries rose by 15 per cent. The average cement price was eight per cent higher in local currency terms and nine per cent higher in US dollars. In aggregates, volumes rose by 52 per cent and the average price was up by one-fifth, while in ready-mixed concrete, volumes were down by eight per cent, but prices improved by five per cent.