Cemex first quarter sales fall 8% in 1Q13

Cemex' first quarter turnover declined by 5.3 per cent to US$3318.6m, while the EBITDA came off by 8.1 per cent to US$521.1m. Volumes were ahead in the USA and in the Philippines, but declined in most other markets.

The trading profit was off by just 0.5 per cent to US$239.1m. The net interest charge increased by 9.7 per cent to US$360.7m, giving an underlying pre-tax loss 33.3 per cent higher at US$141.1m. Once the results from financial instruments and foreign exchange movements are taken into account, there was a swing from a US$58.7m profit into a US$150.9m loss.

The effective net debt was 6.5 per cent lower at US$16,528m, of which 85 per cent was in US dollars, 13 per cent in euro and two per cent in Mexican peso. Equity shareholders' funds were 0.6 per cent higher than with a year earlier at US$12,301.8m, resulting in a gearing level of 134.4 per cent, down from 149.2 per cent a year earlier.

Cement shipments in the first quarter were 7.9 per cent lower at 14.38Mt and ready-mixed concrete deliveries declined by 5.2 per cent to 11.81Mm³, while the aggregates production declined by a more modest 0.3 per cent to 33.46Mt.

The Mexican turnover declined by 6.9 per cent to US$779.9m and the EBITDA fell by 11.5 per cent to US$263.4m, while the trading profit came off by a further 11.9 per cent to US$214.7m. Domestic cement deliveries fell by some 10 per cent because of delays in infrastructure spending and social housing programmes, while the average cement price eased by one per cent in local currency terms.

US turnover improved for the second year and was ahead by 7.6 per cent to US$736.0m and the EBITDA returned to positive territory with a US$18.9m profit compared with a US$24m loss the year before. At the trading level, the business was still making losses, but these were reduced by 31.7 per cent to US$101.1m. The improvement came about in spite of less favourable weather conditions than a year ago, but on the housing side, improved volumes were helped by low inventories. Cement shipments increased by some 2two per cent and selling prices were up by around five per cent.

In northern Europe, turnover declined by a further 13.4 per cent to US$755.8m and a US$16.6m loss was incurred at the EBITDA level, against a US$55.2m profit. The seasonal trading loss jumped from US$7.49m to US$67.1m. Cement volumes declined by a further 15 per cent but the average price, measured in local currencies, emerged 1 per cent higher.

The Mediterranean region generated a turnover eight per cent lower at US$347.2m and the EBITDA fell by 24.7 per cent to US$73.4m with the trading profit dropping by 33.2 per cent to US$45.4m. Grey cement domestic deliveries declined by 12 per cent, while the average local currency price was actually some five per cent ahead. In Spain, domestic grey cement deliveries dropped by a further 33 per cent on top of the 42 per cent reduction in the previous year, but prices still improved by two per cent.

In South America, Central America and the Caribbean, the turnover came back by 5.2 per cent to US$497.1m following the previous year's 30.1 per cent jump. The EBITDA continued to move ahead and improved by a further 5.2 per cent to US$187.7m and the trading profit advanced by 5.6 per cent to US166.6m. The cementitious volume declined by nine per cent, but prices improved by an average five per cent when measured in local currencies and by three per cent in US dollar terms.  Cement deliveries were down by one per cent in Panama and by eight per cent in Costa Rica.

The Asian turnover improved by 11.0 per cent to US$142.3m and the EBITDA moved ahead by 93.1 per cent to US$24m while the trading profit just over trebled to US$15.8m. Cement shipments improved by one per cent. In the Philippines, domestic deliveries improved by four per cent, in spite of fewer working days and prices were ahead by 10 per cent.