During the first nine months of the year, Cemex’ turnover increased by 4.6 per cent to US$11,870.9m while the EBITDA was 1.8 per cent higher at US$2037.1m. The trading profit advanced by 24.2 per cent to US$1150.2m and the net interest charge rose by 11.2 per cent to US$1266.6m. The pretax result went from a US$174.3m loss to a profit of US$132.2m. A 7.1 per cent lower tax charge led to a net attributable loss 44.5 per cent lower at US$325.9m. The net debt at the end of September was 1.8 per cent lower than a year earlier at US$15,944m, giving a gearing level of 157 per cent, compared with 151 per cent a year earlier. However, only six per cent of the gross debt is short term. The number of employees as the end of September was 2.8 per cent higher at 44,055. In the full year, Cemex is expecting capital expenditure to reach US$765m, of which US$505m is for maintenance.
Mexico accounted for 19.5 per cent of turnover and the Mexican share of the EBITDA was 36.4 per cent compared with 35.5 per cent a year earlier. Northern Europe represented 26.5 per cent of turnover and for 13.7 per cent of the EBITDA, while the Mediterranean region accounted for 10.5 per cent of turnover and 12.9 per cent of the EBITDA. South and Central America produced 14 per cent of the turnover and 27.6 per cent of the EBITDA, while Asia contributed 3.8 per cent of turnover and 4.4 per cent of the EBITDA. The United States, finally, represented 22.9 per cent of turnover and 13.9 per cent of EBITDA, up from just 8.3 per cent a year earlier and only 1.5 per cent two year ago. Cement shipments in the nine-month period showed a 5.2 per cent recovery to 51.23Mt, while aggregates deliveries improved by 4.7 per cent to 125.93Mt and ready-mixed concrete deliveries were two per cent higher at 41.77Mm³.
Mexican market
The Mexican turnover declined yet again and dropped by two per cent to US$2354.3m against last year’s 5.6 per cent decline. The EBITDA came off by 2.5 per cent to US$742.1m and the trading profit eased by 1.8 per cent to US$604.9m. Domestic deliveries of grey cement improved by one per cent with the third quarter showing a four per cent rise, with all main segments showing improved volumes. Cement prices edged up by one per cent in local currency but declined by two per cent in US dollar terms. The aggregates volume rose by 11 per cent and domestic prices improved by three per cent, while remaining stable in US dollar terms. Ready-mixed concrete deliveries improved by four per cent while the local currency price improved by an average two per cent.
US results boosted by housebuilding
The US turnover rose by 10.4 per cent to US$2755.4m as the trading environment continued to improve and the EBITDA jumped by 59.5 per cent to US$283.2m. At the trading level, the loss was again substantially reduced, falling to US$46m from US$169.1m a year ago. Housebuilding remained the strongest positive factor, but other segments are now beginning to catch up. Grey cement deliveries increased by eight per cent both in the nine months and in the third quarter, while the average price improved by five per cent. Shipments of aggregates were two per cent lower, though in the third quarter there was a one per cent improvement and prices showed an 11 per cent advance. In ready-mixed concrete, delivery volumes were stable overall, while the average price rose by nine per cent.
European turnover imporves
Cemex’ northern European turnover advanced by 5.8 per cent to US$31872.1 and the EBITDA improved by 10.5 per cent to US$279.4m and the trading rose by 25.4 per cent to US$106.7m. Deliveries of grey cement increased by four per cent in the nine months, but the growth rate was down to one per cent in the third quarter. Aggregates shipments across the region rose by seven per cent, but the expansion had been eliminated by the third quarter. Ready-mixed concrete deliveries were marginally negative over the period, having fallen by eight per cent in the third quarter. Cement deliveries improved by one per cent in both Great Britain and Germany, and by five per cent in Poland. Cement prices improved by two per cent in Germany and by one per cent in Great Britain, while they came off by four per cent in Poland. In aggregates, volumes rose by 13 per cent in Great Britain, by six per cent in Poland and by five per cent in France, but declined by two per cent in Germany. Aggregates prices rose by seven per cent in Poland and by two per cent in Great Britain but were marginally easier in Germany and France. Ready-mixed concrete volumes improved by two per cent in Great Britain, were stable in Germany but declined by five per cent in Poland and by four per cent in France. Ready-mixed concrete prices improved by three per cent in Germany and by four per cent in Britain but declined by nine per cent in Poland and by one per cent in France.
The Mediterranean region saw turnover increase by 12.3 per cent to US$1259.9m, but the EBITDA only improved by 6.7 per cent to US$262.5m, while the trading profit rose by 12.7 per cent to US$187m. Overall regional domestic cement deliveries were marginally lower, but the average selling price in local currencies did advance by 10 per cent. In Spain, domestic cement deliveries improved by two per cent, but the average price fell by eight per cent. Spanish aggregates shipments dropped by a further 17 per cent though the price did increase by four per cent, while in ready-mixed concrete deliveries recovered by three per cent and prices by six per cent. In Egypt cement volumes came off by four per cent, but local prices rose by 19 per cent and by 16 per cent in US dollar terms, while in aggregates volumes were ahead by 37 per cent lower, but the average price dropped by 27 per cent. Egyptian ready-mixed concrete deliveries were 11 per cent ahead and prices rose by 15 per cent. In the third quarter volumes were ahead in Spain (+28 per cent), Croatia, Egypt and the United Arab Emirates.
Latin America
The Cemex operations in South America, Central America and the Caribbean advanced turnover by 1.6 per cent to US$1683.9, but the EBITDA declined by 7.6 per cent to US$563.1m and the trading profit was off by 8.9 per cent at US$497.9m. Cement volumes improved by six per cent and prices in local currency were little changed over the period though they were off by four per cent in US dollar terms. Aggregates volumes were 17 per cent higher, but local prices were stable, while in ready-mixed concrete, volumes improved by nine per cent and prices were just one per cent ahead. In Colombia, the biggest market, cement volumes rose by 18 per cent, but local prices were off by three per cent, with aggregates volumes rising 24 per cent though prices were one per cent lower, while in ready-mixed concrete volumes rose by 14 per cent, but prices improved by just one per cent. In Panama all volumes declined, but cement prices rose by 12 per cent.
Asia: Philippines cement volumes rise
Finally, Asian turnover advanced by three per cent to US$457m and the EBITDA edged up by 0.4 per cent to US$99m. Cement volumes improved by five per cent across the region, and by seven per cent in the Philippines, the largest contributor. The average cement price was two per cent ahead in local currency terms but 2 per cent lower in US dollar terms. In aggregates, volumes declined by eight per cent but the average price was still up by three per cent, while in ready-mixed concrete, volumes were down by 16 per cent, but prices still rose by 12 per cent. There are still no downstream operations in the Philippines, its biggest cement market in the region.
