Cemex reported a six per cent YoY rise – on a like-for-like basis for the ongoing operations and adjusting for currency fluctuations – in net consolidated sales for the second quarter of 2016.
Fernando A Gonzalez, Cemex Chief Executive Officer, said: “Our solid second quarter and first half 2016 results demonstrate the resilience of our portfolio, which is largely comprised of high-growth markets that are experiencing attractive supply-demand conditions.
“We saw higher consolidated cement and aggregates volumes during the quarter as well as continued favourable results from our value-before-volume strategy, which led to a growth in sales of six per cent on a like-to-like basis. Operating EBITDA increased by 16 per cent also on a like-to-like basis with a margin expansion of 1.3 percentage points. Free cash flow after maintenance capex reached US$478m during the quarter, an increase of US$376m from last year’s level.
In terms of geographical markets, net sales in the company’s domestic market increased seven per cent in the second quarter of 2016 to US$796m, compared with US$745m in the 2Q15. Operating EBITDA increased 18 per cent to US$302m versus the same period of last year.
Across the northern border, Cemex operations in the United States reported net sales of US$1.036bn in the 2Q16, up three per cent YoY. Operating EBITDA increased 10 per cent to US$172m in the quarter, versus US$156m in the same quarter of 2015.
In Latin America, Cemex reported net sales of US$466m, representing a 10 per cent YoY decrease. Operating EBITDA fell by five per cent to US$153m in the 2Q15, from US$160m a year earlier.
Net European sales for the period under review decreased two to US$910m, compared with US$926m the previous year. Operating EBITDA was US$122m – four per cent higher than in 2Q15.