Cemex reports increase in net sales in 1Q18

Cemex has announced a 92.3 per cent YoY fall in profit for the 1Q18, decreasing from US$336m to US$26m. The sharp decline has been attributed to higher operating expenses and foreign exchange loss. Operating EBITDA declined four per cent to US$535m, while the EBITDA margin was down 1.9 per cent YoY at 18.8 per cent. However, the company has recorded an eight per cent increase in overall net sales to US$3.38bn from US$3.14bn.

Consolidated cement volumes increased by one per cent to 16.142Mt, compared to 15.932Mt of the year-ago period.

The company remains positive with its outlook for the rest of the year, stating that it expects an increased operating EBITDA.

"For the rest of 2018, we expect favorable consolidated volumes and improving pricing dynamics in most of our markets. This, together with an expected moderation in our energy cost increases and our initiatives to contain other costs, should translate into increased operating EBITDA generation for the full year," said Fernando Gonzalez, CEO, Cemex.

Mexico
Net sales in the company’s operations in Mexico increased 10 per cent in the first quarter of 2018 to US$800m, compared with US$725m in the first quarter of 2017.

Cement volumes contracted four per cent YoY, mainly attributed to the positive market conditions in 2017 which makes it a high base of comparison. Domestic grey cement prices in the country increased by five per cent during the quarter.

Europe
In Europe net sales for the 1Q18 increased nine per cent to US$805m, compared with US$737m in the 1Q17.

Cement volumes fell two per cent in the period, despite improved demand in Spain driving volumes up five per cent in the country.

USA
The company’s operations in the USA reported net sales of US$856m in the 1Q18, an increase of seven per cent on a like-for-like basis.

Domestic grey cement volumes increased four per cent, on the back of solid demand in the western states.