Cemex falls back in Mexico but advances in the USA

Cemex falls back in Mexico but advances in the USA
Published: 07 February 2014

Tagged Under: Results Mexico USA Cemex 

Cemex' turnover improved by 1.6 per cent in 2013 to US$15,226.5m and EBITDA emerged 0.7 per cent ahead at US$2643m, while the trading profit advanced by 17.4 per cent to US$1517.8m. The net interest charge rose yet again and was up by 11.1 per cent to US$1551.5m while the pre-tax loss was reduced by 34.3 per cent to US$264.6m, and the net attributable came down by 7.6 per cent to US$843.1m.

Net debt, including perpetual notes, increased by four per cent during the year to US$16,306m. Shareholders' funds were seven per cent lower than a year earlier at US$10,220.6m, giving a gearing level of 159.5 per cent compared with 129.4 per cent a year earlier. Some 87 per cent of the debt was denominated in US dollars, compared with 11 per cent in euros and two per cent in Mexican pesos. Capital expenditure in the year was 0.5 per cent lower at US$606m.

Group cement shipments were 1.3 per cent lower at 65.01Mt and ready-mixed concrete deliveries were 0.1 per cent lower at 54.9Mm³. Aggregates deliveries, however, did improve by 1.8 per cent to 162.18Mt. The number of employees was 1.9 per cent lower at 43,087.

Mexico
The Mexican turnover declined by 5.7 per cent to US$3,186.7m and the EBITDA fell by 16.5 per cent to US$1008.5m, with EBITDA margins coming down from 35.8 per cent to 31.6 per cent. Mexico generated 38.2 per cent of the group EBITDA, compared with 46.2 per cent in the previous year and 50.9 per cent in the year before. Domestic cement deliveries fell by an average eight per cent in the year on average, while the price declined by three per cent. The commercial and industrial sector has continued to be positive and civil engineering picked up during the second half, but housebuilding activity was constrained by overhanging stock and financing constraints. Aggregates volumes improved by three per cent and prices by one per cent. Ready-mixed concrete deliveries declined by six per cent at stable prices in local currency.

USA
US turnover improved by 8.3 per cent to US$3,314.4m and the EBITDA staged a 496.4 per cent recovery to US$255m and the trading loss was reduced by a further 54 per cent to US$203.2m. The recovery has continued to be led by housebuilding activity, but is now starting to get more widely spread. Cement deliveries have been negatively affected by wet weather, but still increased by five per cent over the year and the average price improved by three per cent. Deliveries of aggregates rose by four per cent and prices by five per cent, while in ready-mixed concrete, volumes increased by eight per cent and prices were ahead by six per cent.

Northern Europe
In northern Europe turnover eased by 0.6 per cent to US$4,077m and EBITDA fell by 18 per cent to US$331.4m and at the trading level the drop was 32.6 per cent to US$103.4m. Overall cement volumes declined by two per cent while the average price improved by one per cent. Aggregates volumes were little changed overall and the average price improved by one per cent. In ready-mixed concrete, volumes declined by three per cent while prices improved by two per cent. In Great Britain, cement deliveries were seven per cent ahead, but the average price declined by three per cent in a more competitive market while in aggregates volumes declined by two per cent but prices improved by two per cent and in ready-mixed concrete volumes improved by four per cent and prices by two per cent.

In Germany cement deliveries improved by one per cent and the average price eased by one per cent. German aggregates volumes were marginally lower while prices improved by one per cent and in ready-mixed concrete volumes were down by four per cent while the average price improved by five per cent. In Poland, cement volumes dropped by another 18 per cent, but prices were only marginally lower. Polish aggregates volumes and prices both fell by 10 per cent, while in ready-mixed concrete volumes were down by eight per cent and prices by six per cent. In France, where Cemex does not sell cement, aggregates deliveries improved by three per cent and prices by two per cent, while in and ready-mixed concrete volumes came off by another six per cent though prices improved by two per cent.

Mediterranean region
In the Mediterranean region, Spain continued to fall, but Egypt saw volumes recover, with the result that the region's turnover managed a four per cent improvement to US$1,515.6m but the EBITDA fell by 13.4 per cent to US$324.6m. Construction activity in Spain continues its sharp declined and Spanish cement deliveries dropped another 28 per cent on top of the 40 per cent drop in the previous year. In spite of this, prices did stage a five per cent improvement. Aggregates shipments dropped by a further 43 per cent, having halved in the previous year and prices weakened by five per cent while ready-mixed concrete deliveries fell by 27 per cent and prices by five per cent. In Egypt cement deliveries recovered by seven per cent and prices rose by 14 per cent in local currency, while in aggregates volumes fell by 13 per cent and local prices by one per cent and in ready-mixed concrete volumes fell by 11 per cent, though prices staged a 15 per cent recovery.

South America
In South America, Central America and Caribbean, the turnover improved by 6.7 per cent to US$2234m and the EBITDA rose by 12.8 per cent to US$782.6m. Cement volumes improved by four per cent and prices in local currency rose by two per cent, but fell by one per cent when measured in US dollars. Aggregates volumes improved by nine per cent, albeit at a slightly lower prices and 12 per cent on the price. In ready-mixed concrete volumes improved by three per cent and prices by eight per cent in local currency. Colombia is the most important country and here and here the cement volume rose by one per cent and local prices by five per cent, while in aggregates volumes advanced by nine per cent though prices eased by two per cent, while in ready-mixed concrete both volumes and local prices improved by eight per cent. In Panama, Cemex increased cement deliveries by three per cent and prices by two per cent, with ready-mixed concrete prices rising by 10 per cent on static volumes.

Asia

The Asian turnover improved by 6.4 per cent to US$576.5m and the EBITDA rose by 32.3 per cent to US$130.4m. Cement volumes improved by 5 per cent and prices improved by six per cent. In aggregates, volumes jumped by 64 per cent, having dropped by 54 per cent in the previous year, with prices being 20 per cent higher. The ready-mixed concrete volume declined by 12 per cent, but the average price was six per cent higher. The Philippines is the biggest market and Cemex cement volumes there increased by eight per cent with prices improving by five per cent.