Cemex - October 2019
Cemex has reported consolidated net sales of US$3.5bn in the 3Q19, representing a decrease of four per cent YoY, or one per cent on a like-for-like (LfL) basis for the ongoing operations and adjusting for foreign-exchange fluctuations. Higher prices for its products, in local currency terns, in all regions were more than offset by the lower volumes seen in Mexico and the Asia, Middle East and Africa region. Operating EBITDA over the same period fell by nine per cent to US$681m. Consolidated cement volumes in the 3Q19 came in at 16.87Mt (3Q18: 17.7Mt), while ready-mixed concrete (RMC) volumes stood at 13.22Mm3 (3Q18: 13.65Mm3) and aggregates 36.59Mt (3Q18: 37.65Mt).
In Mexico its grey cement, RMC and aggregates volumes declined YoY by 15, 16 and 13 per cent, respectively, in the 3Q19. Activity in the industrial and commercial sector was driven by tourism-related investment and commercial projects. While infrastructure has improved, it continues to be affected by the post-election transition process. Net sales in the region stood at US$716m, compared to US$858m in the 3Q18, while operating EBITDA fell from US$314m to US$240m over the same period.
The company’s US grey cement volumes declined by one per cent YoY, while RMC and aggregates volumes rose by one and three per cent, respectively, in the 3Q19. Cement volumes in the southeast were disrupted as the region prepared for a hurricane. The infrastructure sector remained the most dynamic with street and highway spending up 11 per cent YoY and state transportation spending advancing by 20 per cent. Net sales in the region stood at US$1044m, compared to US$999m in the 3Q18, while operating EBITDA increased from US$202m to US$205m over the same period.
The South, Central America and Caribbean market saw grey cement volumes increase by one per cent YoY, while RMC and aggregates volumes slipped by six and seven per cent, respectively, in the 3Q19. Cemex did see a continued recovery in Colombia, with a strong infrastructure sector supported by 4G and other regional projects, along with favourable activity in the residential self-build market. Net sales in the region stood at US$417m, compared to US$442m in the 3Q18, while operating EBITDA declined from US$100m to US$89m over the same period.
Cemex’ European operations reported stable grey cement volumes during the 3Q19 but both RMC and aggregates volumes contracted by two per cent YoY. Its quarterly performance was affected in part by delays in infrastructure projects in Poland, as well as continued Brexit uncertainty in the UK. Net sales in the region came in at US$856m, compared to US$894m in the 3Q18, while operating EBITDA improved slightly from US$140m to US$141m over the same period.
In the Asia, Middle East and Africa market, grey cement volumes decreased by 16 per cent YoY in the 3Q19, while RMC volumes advanced by six per cent and aggregates volumes slipped by four per cent. Net sales in the region were US$365m, compared to US$359m in the 3Q18, while operating EBITDA expanded from US$54m to US$59m over the same period.
