US operations boost Cemex’s second quarter results
Cemex has reported its highest quarterly EBITDA since the third quarter of 2009 as a pick-up in US operations helps to offset declines in Europe and Mexico.
Net sales reached US$3.9bn during the second quarter of 2012, an increase of 1% on a like-to-like basis for the ongoing operations and adjusting for currency fluctuations, versus 1Q11. Operating EBITDA increased by 11% during the quarter to US$702m versus the same period in 2011. On a like-to-like basis, operating EBITDA increased by 22% in the same period.
Fernando A. Gonzalez, Executive Vice President of Finance and Administration, said: "We are pleased with our 22% growth in operating EBITDA, on a like-to-like basis, on back of a 1% percent growth in consolidated net sales. This is the highest EBITDA generation since the third quarter of 2009 and the fourth consecutive quarter with a year-over-year EBITDA increase.
"Our operating EBITDA margin increased by 3 percentage points and was the highest in almost three years, reflecting an improvement in pricing and volume in several of our regions as well as the continued success of our transformation effort. We are particularly pleased with the quarterly performance of our operations in the United States, South, Central America and the Caribbean and Asia regions.
"We remain focused on our transformation process and expect an incremental improvement of US$200m in our steady-state EBITDA during 2012, reaching a run rate of US$400m by the end of this year.
"We also continue to be confident in our ability to meet all of our financial obligations."
In the company's domestic market of Mexico, net sales in the second quarter fell to 14 per cent to US$833m, compared with US$968m in the second quarter of 2011. Operating EBITDA decreased by 4% to US$300m versus the same period of last year.
Operations in the United States reported net sales of US$795m in the second quarter of 2012, up 15% YoY. Operating EBITDA increased to US$27m in the quarter, versus a loss of US$17m in the same quarter of 2011.
In Northern Europe, net sales for the second quarter of 2012 decreased 18% to US$1100m, compared with US$1345m in 2Q11. Operating EBITDA was US$122m for the quarter, 19% lower than the same period of last year.
Second-quarter net sales in the Mediterranean region were US$384m, 20% lower compared with US$477m during the second quarter of 2011. Operating EBITDA decreased 23% to US$96m for the quarter versus the comparable period in 2011.
Cemex’s operations in South, Central America and the Caribbean reported net sales of US$529m in 2Q12, representing an increase of 20% over the same period of 2011. Operating EBITDA increased 58% to US$189m in the second quarter of 2012, from US$120m in the corresponding period of 2011.
Operations in Asia reported a 10% increase in net sales for the second quarter of 2012, to US$142m, versus the second quarter of 2011, and operating EBITDA for the quarter was US$30m, up 35% from the same period last year.
