Cemex results supported by Europe in the 1Q19

Cemex has announced that its consolidated net sales increased by one per cent on a like-for-like basis to US$3.2bn during the first quarter of 2019, after adjusting for foreign exchange fluctuations. However, operating EBITDA decreased by three per cent YoY to US$562m.

The increase in net sales has been attributed to the higher price of the company’s products, as well as higher volumes across its three core products in Europe, and in the company's US ready-mix and aggregates markets.

"We are pleased with the one per cent top-line growth we achieved during the first quarter, despite important volume declines in our two most important markets: Mexico and the US. During the quarter, we enjoyed improved pricing performance in all our regions with favourable volume dynamics in Europe. In the US, ready-mix and aggregates volumes also grew despite adverse weather in part of our footprint," said Fernando A Gonzalez, CEO, Cemex.

Mexico
Net sales for Cemex’s Mexican operations fell eight per cent in the 1Q19 to US$706m, while operating EBITDA was down by 14 per cent YoY to US$255m. Cement volumes slipped 15 per cent, but the prices in local currency terms increased three per cent.

US
The US segment reported net sales of US$878m in the first quarter of 2019, advancing three per cent from US$856m of last year. Operating EBITDA was fairly consistent, finishing at US$130m from US$131m in the same quarter of 2018. Cement volumes decreased four per cent YoY, while pricing in US dollar and local currency was boosted by four per cent.

South, Central America and the Caribbean
Net sales reached US$427m during the 1Q19, representing a one per cent decline on a like-for-like basis from US$455m in the year-ago period. Operating EBITDA remained unchanged at US$103m. Cement volumes were one per cent down on the 1Q18.

Europe
Net sales in Europe increased 12 per cent on a like-to-like basis to US$805m from US$781m. Operating EBITDA was US$61m for the quarter, a massive 77 per cent higher than the same period last year. Cement volumes also advanced 12 per cent and prices were up four per in local currency terms.

Asia, Middle East and Africa
The Asia, Middle East and Africa segment reported a six per cent decline in net sales for the 1Q19 to US$347m, compared with US$375m in the 1Q18. Operating EBITDA for the quarter was 18 per cent lower at US$54m from US$66m. Cement volumes fell 14 per cent. However, pricing in local currency saw a 11 per cent rise.