Cemex LatAm 2014 turnover declines, consolidated sales rise

Cemex LatAm 2014 turnover declines, consolidated sales rise
Published: 05 February 2015


Cemex Latin American Holdings saw turnover decline by 1.4 per cent to US$1725m during 2014 and EBITDA decline by 8.84 per cent to US$577m with the margin declining from 36.2 to 33.5 per cent.

The trading profit came down by 7.9 per cent to US$478.4m and after a 20.5 per cent drop in financial expenses to US$90.4m and other items, the pre-tax profit did improve by 4.1 per cent to US$419.1m. After tax and minorities, the net attributable profit emerged 3.5 per cent ahead at US$273.4m. The net debt was 12.6 per cent lower at US$1140m, giving a gearing level of 81.7 per cent compared with 102.8 per cent a year earlier. 

The cement volume increased by 7.5 per cent to 7.91Mt, while aggregates shipments rose by eight per cent to 3.5Mt and ready-mixed concrete deliveries were 5.3 per cent higher at 7.07Mm³. 

Colombia
In Colombia, the biggest single market, turnover declined by 3.1 per cent to US$993m and the EBITDA came down by 14.4 per cent to US$363m. Domestic cement deliveries were some 16 per cent lower, while aggregates shipments dropped by a fifth and ready-mixed concrete deliveries saw in 14 per cent reduction.  The price of cement declined by 10 per cent in US dollar terms and by four per cent in local currency, while both aggregates and concrete prices improved by one per cent in local currency.

Panama
In Panama, turnover was 1.6 per cent higher at US$315m and the EBITDA advanced by 0.7 per cent to US$140m. Domestic cement deliveries off by 15 per cent, but the average price did improve by 12 per cent. This reflects lower deliveries to the Panama Canal expansion project, while housebuilding was the biggest user of cement. Aggregates shipments improved by four per cent at a marginally lower price while ready-mixed concrete deliveries were one per cent lower but the average price was unchanged.

Costa Rica
In Costa Rica, turnover declined by 1.3 per cent to US$153m while the EBITDA remained virtually unchanged at US$69m and the margin improved by a further 1.8 per cent to 45.4 per cent.  Domestic cement deliveries eased by two per cent as did the price in US dollar terms, while in local currency it improved by six per cent. Aggregates shipments improved by five per cent but the average price was lower while ready-mixed concrete deliveries fell by 22 per cent and prices eased by five per cent in US dollar terms but advanced by 32 per cent in local currency. The Colorado, Costa Rica cement works is being expanded by around a quarter to give it an annual capacity of 1.1Mt. Completion of this US$35m project is expected in 2017 and involves enhancing the clinker capacity and installing one new grinding mill.

Rest of the region
Elsewhere in the region, which includes Nicaragua, Guatemala and El Salvador as well as an import operation in Brazil, turnover was 0.7 per cent higher at US$277m and the EBITDA was two per cent higher at US$78m. Major contracts being supplied include the Izapa – Nejapa highway in Nicaragua and commercial projects in Nicaragua. Cement volume and the price in US dollar terms both eased by about one per cent. Aggregates volumes jumped by 56 per cent though the price eased a bit, while ready-mixed concrete volumes were two per cent higher and prices improved by seven per cent in local currency.