CEMEX Reports Second-Quarter 2016 Results
- Net income for the quarter increased 81% on a year-over-year, reaching US$205 million, and was the
highest in a second quarter since 2008.
- Operating EBITDA increased by 16% on a like-to-like basis during the quarter, leading to an EBITDA
margin of 20.9%. Both EBITDA and EBITDA margin were the highest in a second quarter since 2008.
- Free cash flow for the quarter was US$422 million, an improvement of US$359 million, compared with
the same quarter of 2015 and the highest in a second quarter since 2006.
- Reduction of close to US$1.3 billion during the first half of 2016 in our pro-forma total debt plus
perpetual notes, which reflects the utilization of the created cash reserve and the proceeds from our Philippines transaction for
debt reduction, among other items.
CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE: CX) announced today that its consolidated net sales reached US$3.7 billion during the
second quarter of 2016, an increase of 6% 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% during the quarter to US$771 million versus the
same period in 2015. On a like-to-like basis, operating EBITDA increased 16% 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% and 24% on a
like-to-like basis to US$539 million.
- Controlling interest net income improved 81% 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% and, on a like-to-like basis, 16% to US$771
million.
- Operating EBITDA margin grew by 1.3 percentage points on a year-over-year basis reaching 20.9%.
- 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% on a like-to-like basis. Operating EBITDA increased by 16% 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% 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% 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% from
the same period in 2015. Operating EBITDA increased 10% 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% over the same period of 2015. Operating EBITDA decreased 5% 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% 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% higher than the same period last year.
Operations in Africa, Middle East and Asia reported a 4% 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% 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.
This press release contains forward-looking statements and information that are necessarily subject to risks, uncertainties
and assumptions. Many factors could cause the actual results, performance or achievements of CEMEX to be materially different from
those expressed or implied in this release, including, among others, changes in general economic, political, governmental and
business conditions globally and in the countries in which CEMEX does business, changes in interest rates, changes in inflation
rates, changes in exchange rates, the level of construction generally, changes in cement demand and prices, changes in raw material
and energy prices, changes in business strategy and various other factors. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein.
CEMEX assumes no obligation to update or correct the information contained in this press release.
Operating EBITDA is defined as operating income plus depreciation and operating amortization. Free Cash Flow is defined as
Operating EBITDA minus net interest expense, maintenance and expansion capital expenditures, change in working capital, taxes paid,
and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed
assets that are no longer in operation). Net debt is defined as total debt minus the fair value of cross-currency swaps associated
with debt minus cash and cash equivalents. The Consolidated Funded Debt to Operating EBITDA ratio is calculated by dividing
Consolidated Funded Debt at the end of the quarter by Operating EBITDA for the last twelve months. All of the above items are
presented under the guidance of International Financial Reporting Standards as issued by the International Accounting Standards
Board. Operating EBITDA and Free Cash Flow (as defined above) are presented herein because CEMEX believes that they are widely
accepted as financial indicators of CEMEX's ability to internally fund capital expenditures and service or incur debt. Operating
EBITDA and Free Cash Flow should not be considered as indicators of CEMEX's financial performance, as alternatives to cash flow, as
measures of liquidity or as being comparable to other similarly titled measures of other companies.
CEMEX, S.A.B. de C.V.
Media Relations:
Jorge Pérez, +52(81) 8888-4334
mr@cemex.com
or
Investor Relations:
Eduardo Rendón, +52(81) 8888-4256
ir@cemex.com
or
Analyst Relations:
Lucy Rodriguez, +1(212) 317-6007
ir@cemex.com
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