Cemex, S.A.B. de C.V. announced that its consolidated net sales reached US $3.7 billion during the second quarter of 2016, an increase of 6 percent on a like-to-like basis for the ongoing operations and adjusting for currency fluctuations, versus the comparable period in 2015. Operating EBITDA increased 6 percent during the quarter to US $771 million versus the same period in 2015. On a like-to-like basis, operating EBITDA increased 16 percent in the same period.
Cemex’s Consolidated Second-Quarter 2016 Financial and Operational Highlights
* The increase in consolidated net sales on a like-to-like basis was due to higher prices of our products, in local currency terms, in most of our operations, as well as higher volumes in Mexico, U.S., and our European region.
* Operating earnings before other expenses, net, in the second quarter increased 11 percent and 24 percent on a like-to-like basis to US$539 million.
* Controlling interest net income improved 81 percent during the second quarter of 2016 to US$205 million from US$114 million in the same period last year.
* Operating EBITDA increased during the quarter 6 percent and, on a like-to-like basis, 16 percent to US$771 million.
* Operating EBITDA margin grew by 1.3 percentage points on a year-over-year basis reaching 20.9 percent.
* Free cash flow for the quarter was US$422 million, an improvement of US$359 million, compared with the same quarter of 2015.
Fernando A. Gonzalez, Chief Executive Officer, said: “Our solid second quarter and first half 2016 results demonstrate the resilience of our portfolio, which is largely comprised of high-growth markets that are experiencing attractive supply-demand conditions.
“We saw higher consolidated cement and aggregates volumes during the quarter as well as continued favorable results from our value-before-volume strategy, which led to a growth in sales of 6 percent on a like-to-like basis. Operating EBITDA increased by 16 percent also on a like-to-like basis with a margin expansion of 1.3 percentage points. Free cash flow after maintenance capex reached US$478 million during the quarter, an increase of US$376 million from last year’s level.
“Our pro-forma debt, reflecting our cash reserve and the proceeds from our Philippines transaction, among other items, is close to US$1.3 billion lower than that at the end of 2015. This is an additional step in our path to reach an investment-grade capital structure as soon as possible.”
Consolidated Corporate Results
During the second quarter of 2016, controlling interest net income was US$205 million, an improvement over US$114 million in the same period last year.
Total debt plus perpetual notes decreased by US$1,151 million during the quarter.
Geographical Markets Second-Quarter 2016 Highlights
Net sales in our operations in Mexico increased 7 percent in the second quarter of 2016 to US$796 million, compared with US$745 million in the second quarter of 2015. Operating EBITDA increased 18 percent to US$302 million versus the same period of last year.
Cemex’s operations in the United States reported net sales of US$1,036 million in the second quarter of 2016, up 3 percent from the same period in 2015. Operating EBITDA increased 10 percent to US$172 million in the quarter, versus US$156 million in the same quarter of 2015.
Cemex’s operations in South, Central America and the Caribbean reported net sales of US$466 million during the second quarter of 2016, representing a decrease of 10 percent over the same period of 2015. Operating EBITDA decreased 5 percent to US$153 million in the second quarter of 2016, from US$160 million in the second quarter of 2015.
In Europe, net sales for the second quarter of 2016 decreased 2 percent to US$910 million, compared with US$926 million in the second quarter of 2015. Operating EBITDA was US$122 million for the quarter, 4 percent higher than the same period last year.
Operations in Africa, Middle East and Asia reported a 4 percent decrease in net sales for the second quarter of 2016, to US$407 million, versus the second quarter of 2015, and operating EBITDA for the quarter was US$93 million, down 2 percent from the same period last year.
Cemex is a global building materials company that provides high quality products and reliable service to customers and communities in more than 50 countries. Celebrating its 110th anniversary, Cemex has a rich history of improving the well-being of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future.