Colombia boosts Cemex Latin American Holdings

Colombia boosts Cemex Latin American Holdings
Published: 18 July 2014


First-half turnover at Cemex Latin American Holdings improved by 6.1 per cent to US$864m while EBITDA declined by 7.5 per cent to US$283.1m.

At the trading level there was a 9.5 per cent reduction to US$235.6m. After a net interest charge 19 per cent lower at US$47.6m, the pretax profit emerged 4.8 per cent lower at US$184.2m. The net attributable profit declined by 14.3 per cent to US$121.2m.

Net debt at the end of June was 12.3 per cent lower than a year earlier at US$1,237m, giving a gearing level of 85.3 per cent compared with 103.9 per cent a year earlier. Cement shipments in the period were 8.6 per cent higher at 3.93m, while aggregates deliveries advanced by 22.7 per cent to 4.15Mt and the ready-mixed concrete volume rose by 8.9 per cent to 1.67Mm³.

Colombian turnover advanced by 12.2 per cent to US$591.9m though the EBITDA emerged 4.8 per cent lower at US$180.8m. Domestic grey cement deliveries advanced by around 20 per cent, while the aggregates volume rose by 32 per cent and ready-mixed concrete deliveries improved by 17 per cent. The average cement price eased by 2 per cent in local currency and by seven per cent in US dollar terms. Government sponsored housing projects had a notable beneficial effect on demand and infrastructure investment remained strong.

In Panama, turnover declined by 3.2 per cent to US$148.7m and the EBITDA came off by 11.2 per cent to US$66m as the EBITDA margin declined from 48.4 to 44.4 per cent. Cement shipments came down by 19 per cent as the Panama Canal expansion project consumed less cement and there was a strike by construction workers in the second quarter. The average cement price, however, improved by 13 per cent. Aggregates deliveries were six per cent lower and prices eased by two per cent. Ready-mixed concrete deliveries declined by eight per cent, hut pricing was stable.

Costa Rican turnover was around one per cent lower at US$76m and the EBITDA eased by 3 per cent to US$33m. Cement shipments, however, improved by seven per cent and the average price improved by four per cent in local currency, but declined by four per cent when measured in US dollar. In aggregates, volumes declined by some four per cent and prices were around 11 per cent lower in dollar terms. Ready-mixed concrete deliveries declined by 19 per cent and dollar prices eased by two per cent. Infrastructure investment was the main driver of cement demand.

The remainder of the region saw turnover ease by 1.3 per cent to US$143.2m and the EBITDA was 1.7 per cent lower at US$40.1m. Cement shipments increased by 1 per cent but the dollar price declined by4 per cent. Aggregates shipments jumped by 46 per cent but the average price fell by 12 per cent in dollar terms, while ready-mixed concrete volumes declined by three per cent though prices improved by three per cent in US dollar terms. Nicaragua continued to perform well, but demand was generally weaker in the other markets.