Cemex Latin American Holdings sees improved cement volumes in Colombia

Cemex Latin American Holdings sees improved cement volumes in Colombia
Published: 28 July 2016


Cemex Latin American Holdings' first-half turnover fell by 10.1 per cent to US$672.1m, while EBITDA came off by 4.4 per cent to US$226.1m. At the trading level there was a 4.3 per cent reduction to US$183.5m. After a net interest charge 27.6 per cent lower at US$29.4m, the pretax profit emerged 16.5 per cent higher at US$165.4m. The net attributable profit rose by 22 per cent to US$100.6m. Net debt at the end of June was 8.6 per cent lower than a year earlier at US$984m, giving a gearing level of 67.3 per cent compared with 75.6 per cent a year earlier. Cement shipments in the period were 4.3 per cent higher at 3.78m, while aggregates deliveries declined by 15.8 per cent to 3.68Mt and the ready-mixed concrete volume was 11.0 per cent lower at 1.56Mm³.

The Colombian turnover came off by 9.4 per cent to US$339m and EBITDA emerged 9.3 per cent lower at US$115.8m. Domestic grey cement deliveries improved by around five per cent, while the aggregates volume fell by 16 per cent and ready-mixed concrete deliveries came off by nine per cent. The average cement price rose by 11 per cent in local currency but fell by nine per cent in US dollar terms. Housebuilding was the prime driver of cement demand, but infrastructure spending also required more cement. 

In Panama turnover fell by 14 per cent to US$129.8m as work on the expanded Panama Canal drew to a close and EBITDA eased by 5.6 per cent to US$57.9m. Cement shipments fell by 21 per cent while the average cement price improved by three per cent. Aggregates deliveries were nine per cent lower and prices came off by three per cent. Ready-mixed concrete deliveries were 11 per cent down and prices eased by five per cent.

The Costa Rican turnover was 8.7 per cent lower at US$81.7m and EBITDA declined by 11.7 per cent to US$31.6m. Cement shipments fell by 15 per cent and the average price eased by three per cent in local currency and by four per cent when measured in US dollar. In aggregates, volumes improved by some six per cent and prices were stable in dollar terms. Ready-mixed concrete deliveries declined by eight per cent while in dollar terms prices improved by eight per cent. Infrastructure investment is slowing down from its previously-high level.

The remainder of the region saw turnover ease by 5.9 per cent to US$133.1m, but EBITDA were 11.9 per cent higher at US$44.4m. Cement shipments improved by 11 per cent and the dollar price was off by five per cent. Aggregates shipments were 59 per cent lower and the average price declined by 17 per cent in dollar terms, while ready-mixed concrete volumes fell by 33 per cent and prices were off by two per cent in US dollar terms. Cement volumes in both Nicaragua and Guatemala reached new records in the second quarter.

For the full year, Cemex Latin America is expecting cement volumes to show a high single-figure decrease in Costa Rica and a low double-digit decline in Panama but a low single-figure advance in Colombia. Aggregates volumes are forecast to be stable overall, while ready-mixed concrete volumes should show a slight improvement. Maintenance expenditure is expected to amount to around US$57m in 2016, while some US$112m is forecast to be spent on strategic investments.