Cemex: Colombia and Panama boost 3Q14 results
Cemex Latam Holdings SA (CLH) reported consolidated net sales of US$1.324bn during 9M14, reflecting a three per cent YoY rise. Net sales experienced a three per rise drop in 3Q14 when compared to 3Q13 as revenues from housing solutions projects were lower. After adjusting for this effect, consolidated net sales rose by five per cent during 9M14 and by six per cent in 3Q14, on a YoY basis.
Carlos Jacks, CEO of CLH, said: “During the third quarter we continued to enjoy a favourable demand environment in most of our markets. In Colombia, once again, we reached a new sales volume record in all three products. In Nicaragua we reported double-digit growth rates in all products, and in our operations in Panama we reached new records in terms of net sales and operating EBITDA.”
Compared to the 2Q14, operating EBITDA in the third quarter increased by 12 per cent, mainly driven by higher EBITDA generation in Colombia and Panama. Consolidated EBITDA margin in the third quarter increased by 2.5 percentage points, compared to the 2Q14, supported by a margin improvement in most of CLH’s markets.
On a YoY basis, operating EBITDA during the third quarter declined by five per cent to US$160m, largely due to a scheduled maintenance work in Colombia, lower prices of our products and the effect of a lower EBITDA contribution in 2014 from the housing solutions projects.
Consolidated cement, ready-mix and aggregates volumes across the region during the first nine months of 2014 increased by seven per cent, seven per cent and 19 per cent, respectively, compared to the same period last year.
Regional highlights
During the first nine months of the year, cement, ready-mix and aggregates volumes in Colombia increased by 18 per cent, 14 per cent and 24 per cent, respectively, compared to the same period a year ago. Adjusting for the effect of lower revenue in the housing solutions projects, net sales in Colombia increased by eight per cent during the third quarter, compared to the same quarter in 2013.
In Panama, ready-mix and aggregates volumes in the third quarter increased by four and seven per cent, respectively, compared to the same period a year ago. Adjusting for the effect of lower cement consumption for the Panama Canal expansion project this year, cement daily volume sales increased by eight per cent during the quarter, compared to the third quarter a year ago.
Carlos Jacks, added: “We remain very optimistic on the growth prospects for the construction industry throughout the region. Over the past years we have worked intensively to expand our operations in our markets, and we continue strengthening our footprint with expansion projects like the new cement plant in Colombia and the grinding facility in Nicaragua. Our solid asset base together with our unique portfolio of building solutions, will allow us to continue promoting growth in our markets.”
During 3Q14, controlling interest net income was a gain of US$88m. Net debt decreased by US$89m, to US$1088m as of the end of the 3Q14.
Operating EBITDA in Colombia decreased by 13 per cent to US$100m in the 3Q14 versus US$115m in the 3Q13, with a decline of seven per cent in net sales reaching US$267m. In Panama, operating EBITDA increased by seven per cent to US$42m during the quarter. Net sales reached US$93m in the 3Q14, an increase of 10 per cent compared to the same period in 2013.
In Costa Rica, operating EBITDA reached US$18m during the quarter, increasing by two per cent compared to the same period a year ago. Net sales decreased by six per cent to US$38m, compared to the 3Q13.
In the rest of CLH region net sales during the quarter reached US$67m. Operating EBITDA in the quarter increased by nine per cent, versus the comparable period in 2013, reaching US$20m.
