Cemex Latin American Holdings profits drop 65%

Cemex Latin American Holdings profits drop 65%
Published: 05 February 2016


Cemex Latin American Holdings saw turnover decline by 17.3 per cent to US$1427.1m and EBITDA dropped by 22 per cent to US$449.8m with the margin declining from 33.5 to 31.5 per cent.

The trading profit fell by 41.2 per cent to US$281.5m and after an 18.5 per cent drop in financial expenses to US$73.7m and other items, the pretax profit dropped by 55 per cent to US$188.5m. After tax and minorities, the net attributable profit emerged 65.1 per cent lower at US$95.9m. The net debt was 9.3 per cent lower at US$1034m, giving a gearing level of 78.8 per cent compared with 81.7 per cent a year earlier.

The cement volume declined by 7.5 per cent to 7.31Mt, while aggregates shipments were 2.6 per cent lower at 3.39Mt and ready-mixed concrete deliveries were off by 2.9 per cent to 3.4Mm³.

Performance by country
In Colombia, the biggest single market, turnover declined by 27 per cent to US$725m and EBITDA came down by 31.7 per cent to US$248m. Domestic cement deliveries were some nine per cent lower, while aggregates shipments declined by six per cent and ready-mixed concrete deliveries saw a three per cent reduction. The price of cement declined by 22 per cent in US dollar terms but rose by eight per cent in local currency, while both aggregates and concrete prices improved by around five per cent in local currency.

In Panama turnover declined by 9.5 per cent to US$285m and the EBITDA retracted by 16.4 per cent to US$1417m. Domestic cement deliveries were off by nine per cent but dropped by 22 per cent in the final quarter. This reflects lower deliveries to the Panama Canal expansion project and other large projects. Aggregates shipments were stable over the period but came off by 19 per cent in the final quarter with prices improving by three per cent. Ready-mixed concrete deliveries were 12 per cent lower and the average eased by four per cent.

In Costa Rica turnover improved by 9.2 per cent to US$167m while EBITDA again remained virtually unchanged at US$69m and the margin declined by 4.1 per cent to 41.3 per cent. Domestic cement deliveries increased by seven per cent and the price in US dollar terms was up by three per cent, while in local currency it improved by one per cent. Aggregates shipments improved by 16 per cent, but the average price was lower while ready-mixed concrete deliveries improved by 14 per cent though prices eased slightly.

Elsewhere in the region, which includes Nicaragua, Guatemala and El Salvador as well as an import operation in Brazil, turnover was 2.9 per cent lower at US$269m and EBITDA was seven per cent lower at US$73m. Cement volumes declined by two per cent and the price in US dollar terms was off by six per cent. Aggregates volumes rose by 13 per cent and the price by eight per cent in dollar terms, while ready-mixed concrete volumes were also 13 per cent higher while prices improved only marginally.