Cemex increases first-quarter volumes

Cemex increases first-quarter volumes
Published: 01 May 2014


Cemex' first-quarter turnover increased by 8.2 per cent to US$3590.7m, while the EBITDA improved by 2.7 per cent to US$535m. The trading profit rose by 11.7 per cent to US$267.7m.

The net interest charge increased by 10.4 per cent to US$406.9m, to give a pre-tax loss 11.3 per cent higher at US$167.9m. The effective net debt was 0.9 per cent higher at US$16,325m, of which 88 per cent was in US dollar, 10 per cent in euro and two per cent in Mexican peso, with 66 per cent of the debt being at fixed rates. Equity shareholders' funds were 7.7 per cent lower than with a year earlier at US$10,281m, giving a gearing level of 158.8 per cent, up from 134.4 per cent a year earlier.

Cement shipments in the first quarter increased by 8.7 per cent to 15.63Mt, aggregates production rose by 12.5 per cent to 37.63Mt and ready-mixed concrete deliveries improved by 7.8 per cent to 12.74Mm³.

Mexico
The Mexican turnover declined by a further 5.5 per cent to US$737.0m and the EBITDA was off by five per cent to US$250.3m, while the trading profit came off by 4.6 per cent to US$204.9m. Domestic cement deliveries did recover by one per cent, but only thanks to an additional business day in the period without which there would have been a one per cent decline, and the average cement price eased by one per cent in local currency terms. The volume improvement was entirely in bulk deliveries, with bagged sales volume being unchanged. Mexican aggregates deliveries did improve by 15 per cent while prices off by one per cent. Ready-mixed concrete deliveries improved by four per cent, while the average price was one per cent higher.

US
US turnover improved for the third season and rose by 7.5 per cent to US$791.5m and the EBITDA jumped by 47.8 per cent to US$27.9m. At the trading level, the loss was reduced by 22.0 per cent to US$78.8m. The improvement was achieved in spite of worse climatic conditions than in the previous year. The poor weather led to some maintenance work being brought forward, which should help results for the remainder of the year. Cement shipments did improve by some nine per cent and selling prices edged ahead by one per cent. Aggregates deliveries declined by six per cent as a major airport contract in Florida was finished, but the average price improved by 13 per cent. Ready-mixed concrete deliveries were unchanged because of the transfer of the operations in North and South Carolina to associate status, without which there would have been a five per cent volume improvement, and the average price improved by eight per cent.

Northern Europe
In northern Europe, better weather and improved market conditions led to a 20.5 per cent increase in turnover to US$911.6m with last year's US$16.6m loss at the EBITDA level being replaced by a US$12.7m profit. The seasonal trading loss was reduced by 36.5 per cent to US$42.6m. Cement volumes advanced by 22 per cent but the average price, measured in local currencies, emerged one per cent lower. Aggregates deliveries jumped by 26 per cent, but the average price was off by three per cent.

In ready-mixed concrete, volumes improved by 15 per cent, but the average price was one per cent lower. In Great Britain, cement deliveries improved by two per cent and the price by one per cent, with aggregates volumes rising by 16 per cent and prices by two per cent while in ready-mixed concrete shipments improved by seven and prices by two per cent. In Germany, cement deliveries rebounded by 30 per cent and prices improved by two per cent, while aggregates shipments advanced by 41 per cent and ready-mixed concrete deliveries by 29 per cent, with prices being unchanged on balance in aggregates and increasing by five per cent in concrete.

In Poland, where the hard winter letd to a 36 per cent drop in cement volumes in the previous year, there was a 38 per cent recovery, though the price moved ahead by just one per cent. Polish aggregates deliveries jumped by 69 per cent though the average price fell by nine per cent. While ready-mixed concrete did improve by 13 per cent, the average price came off by the same percentage. In France, where Cemex does not sell cement, aggregates deliveries rose by 13 per cent and prices by one per cent while in ready-mixed concrete shipments rose by 12 per cent but the average price was off by two per cent.

Mediterranean
The Mediterranean region generated a turnover 18.6 per cent higher at US$412.0m and the EBITDA improved by 10.7 per cent to US$81.2m with the trading profit staging a 23.6 per cent recovery to US$56.1m. Overall grey cement domestic deliveries improved by two per cent, while the average local currency price was eight per cent higher. Higher volumes in Croatia and the UAE more than made up for the lower volumes in Spain and Egypt. Aggregates volumes were up by six per cent and the average price advanced by 17 per cent. In ready-mixed concrete, volumes rose by 11 per cent and prices improved by four per cent.

In Spain, demand continued to fall with domestic grey cement deliveries down by a further 5 per cent and prices declined by four per cent. Spanish aggregates and ready-mixed concrete deliveries fell by 24 per cent and 3 per cent respectively and prices weakened by fur per cent in aggregates, but recovered by seven per cent in ready-mixed concrete. Egyptian domestic deliveries declined by three per cent, but the price improved by 15 per cent in local currency terms, while aggregates shipments fell by 28 per cent ready-mixed concrete deliveries declined by 10 per cent. Ready-mixed concrete deliveries in Israel were strong, rising by 17 per cent.

South America, Central America & the Caribbean
In South America, Central America and the Caribbean, the turnover improved by 8.2 per cent to US$537.9m, but the EBITDA eased by 0.5 per cent to US$186.8m and the trading profit emerged 0.2 per cent lower at US166.3m. The cementitous volume rose by 16 per cent, but prices were little changed on average when measured in local currencies, but fell by seven per cent in US dollar terms. Aggregates shipments jumped by 27 per cent on a slightly lower average price. Ready-mixed concrete volumes improved by 16 per cent and prices rose by two per cent.

Colombian cement shipments jumped ahead by 34 per cent, but prices were two per cent lower on average, while aggregates volumes rose by 38 per cent and ready-mixed concrete volumes by 23 per cent. Cement deliveries declined by 17 per cent in Panama, but rose by 14 per cent in Costa Rica.

The Asian turnover improved by 2.6 per cent to US$146.1m and the EBITDA rose by 8.2 per cent to US$25.9m while the trading profit advanced by 17.9 per cent to US$18.6m. Cement shipments improved by 10 per cent, aggregates deliveries jumped by 67 per cent, but ready-mixed concrete deliveries fell by 11 per cent. Cement prices were three per cent higher in local currencies but declined by six per cent in dollar terms, while local prices for aggregates rose by 23 per cent and ready-mixed concrete prices by 13 per cent. In the Philippines, domestic cement deliveries improved by 13 per cent and local prices by two per cent.