Cemex - April 2019


Cemex 1Q19 turnover declined by 6.9 per cent to US$3238.12m and EBITDA fell by 6.1 per cent to US$5561.84m. The trading profit dropped by 14.3 per cent to US$293.98m. The company's net interest charge came down by 7.1 per cent to US$189.18m and the pretax profit was reduced by 36.8 per cent to US$54.65m. The effective net debt was seven per cent lower at US$11,672m, of which 61 per cent was in US dollar, 29 per cent in euro and nine per cent in other currencies, with 70 per cent of the debt being at fixed rates. Equity shareholders' funds were 0.4 per cent lower compared with a year earlier, at US$9.246m, giving a gearing level of 115.6 per cent. Cement shipments in the first quarter declined by 6.1 per cent to 14.933Mt. Ready-mixed concrete deliveries fell by 0.9 per cent to 12.09Mm³ while the aggregates production improved by 3.2 per cent to 34.38Mt. The number of employees at the end of March was 0.7 per cent lower at 41,054. Total capital expenditure for the year is expected to amount to around US$1150m, of which some US$550m should be maintenance expenditure.

The Mexican turnover declined by 11.9 per cent to US$706.4m and EBITDA fell by 17.2 per cent to US$255.2m, while the trading profit advanced dropped by 20.1 per cent to US$216.8m. Grey cement deliveries declined by 15 per cent and the price improved by three per cent, though it was unchanged in US dollar terms. Ready-mixed concrete deliveries decreased by 11 per cent, while the average peso price was four per cent higher. Mexican aggregates deliveries were off by six per cent and prices improved by three per cent in pesos while easing by one per cent in US dollars.

US turnover improved by 2.6 per cent to US$878.1m. EBITDA was virtually unchanged, increasing 0.8 per cent to US$129.6m. At the trading level, the profit declined by 28.5 per cent to US$28.5m. Cement shipments deliveries declined by four per cent in the first quarter while the average price improved by four per cent. Aggregates deliveries advanced by five per cent and the average price was one per cent ahead. Ready-mixed concrete deliveries rose by one per cent while the average price emerged two per cent higher. Construction activity was the strongest in the west. Housebuilding was the most robust part of the construction market though housing starts did show a decline. For the first two months, the commercial and industrial growth was three per cent and infrastructural construction activity rose by 18 per cent

In South America, Central America and the Caribbean, turnover eased by 6.2 per cent to US$426.6m. EBITDA declined by 4.3 per cent to US$102.7m and the trading profit came off by 6.5 per cent to US$78.3m. The cementitious volume eased by one per cent, while prices were two per cent ahead. Aggregates shipments declined by 14 per cent, with the average price being four per cent higher. Ready-mixed concrete volumes fell by six per cent while prices were off by one per cent. Colombian cement shipments recovered by eight per cent and local prices were two per cent ahead, but five per cent lower in dollar terms. Aggregates volumes declined by four per cent and prices came off by three per cent in dollar terms but rose by eight per cent in local currency. Ready-mixed concrete volumes rose by eight per cent while prices decreased by 10 per cent in US dollars and by one per cent in local currency. Cement deliveries fell by 14 per cent in Panama and by 20 per cent in Costa Rica.

The European turnover showed a further 3.1 per cent recovery to US$805.3m while EBITDA rose by 62.3 per cent US$60.6m. At the trading level, the loss was reduced from US$28.8m to US$3.7m. Cement volumes were 12 per cent ahead and the average price, measured in local currencies, emerged four per cent higher. Aggregates deliveries rose by 13 per cent, and the average price was up by four per cent. In ready-mixed concrete, volumes recovered by 11 per cent while the average price improved by three per cent. Infrastructure spending was an important source of demand in Germany, France and Poland as was the residential sector in Spain, Poland, Great Britain and Germany.

The Asian and African turnover showed a 7.5 per cent decline to US$346.5m while EBITDA fell by 19.1 per cent to US$53.6m. The trading profit came off by 27.5 per cent to US$34.1m. Cement shipments declined by 14 per cent, while aggregates deliveries were down by nine per cent. Ready-mixed concrete deliveries came off by eight per cent. Cement prices were 11 per cent lower in local currencies and in US dollar terms. Local prices for aggregates rose four per cent and ready-mixed concrete prices were one per cent ahead. In the Philippines domestic cement deliveries declined by one per cent and local prices by seven per cent. Egyptian domestic cement deliveries dropped by 31 per cent and the price rose by four per cent in local currency terms. Aggregates shipments fell by 28 per cent, with prices being 19 per cent ahead. Ready-mixed concrete deliveries fell by 23 per cent while prices rose seven per cent.