Cemex’ US EBITDA rises by 65% and trading loss almost eliminated

Cemex' turnover improved by 3.2 per cent in 2014 to US$15,708.5m and the EBITDA advanced by 3.7 per cent to US$2740.5m, while the trading profit rose by 12.3 per cent to US$1275.6m.

The net interest charge rose yet again and was up by 4.3 per cent to US$1608.4m, while the pre-tax loss was reduced by 53.2 per cent to US$124m and the net attributable loss emerged 39.8 per cent lower at US$507.3m. 

Net debt, including perpetual notes, declined by 6.7 per cent during the year to US$16,291m, with 71 per cent of the debt being at fixed rates.  Shareholders' funds were 1.7 per cent lower than a year earlier at US$131,103.4m, giving a gearing level of 124.3 per cent compared with 159.5 per cent a year earlier. Some 88 per cent of the debt was denominated in US dollars, compared with 10 per cent in euros and two per cent in Mexican pesos. Capital expenditure in 2014 was 26.3 per cent higher at US$765m and Cemex expects to spend around US$800m in 2015.   

Cement shipments improve
Group cement shipments recovered and increased by 3.4 per cent to 68.4Mt while aggregates deliveries improved by 3.4 per cent to 167.75Mt and ready-mixed concrete deliveries were ahead by two per cent to 55.99Mm³.  The number of employees at the year end was 2.7 per cent higher at 44,241. 

Mexican volumes and prices recover
The Mexican turnover eased by 0.1 per cent to US$3,184.8m and the EBITDA declined by 0.9 per cent to US$999.1m, with the Mexican EBITDA margin being reduced from 31.6 per cent to 31.4 per cent.  Mexico generated 36.5 per cent of the group EBITDA, compared with 38.2 per cent in the previous year and 46.2 per cent in the year before that. Domestic cement deliveries did recover by an average two per cent in the year and the price also improved by two per cent. The commercial and industrial, civil engineering and housebuilding segments were all showing positive signs. Aggregates volumes improved by 10 per cent and prices by three per cent. Ready-mixed concrete deliveries improved by three per cent and prices by two per cent. All prices in local currency.

US advance
US turnover improved by 11 per cent to US$3,678.4m and the EBITDA advanced by a further 65 per cent to US$420.8m and the trading loss was virtually eliminated. The recovery in US cement demand has continued and has extended beyond housebuilding. Cement deliveries increased by seven per cent over the year and the average price improved by six per cent.  Deliveries of aggregates declined by two per cent while prices advanced by 11 per cent, while in ready-mixed concrete, volumes improved by two per cent and prices were ahead by eight per cent.

Europe
In northern Europe turnover increased by 1.9 per cent to US$4,152.7m and the EBITDA rose by 10.8 per cent to US$367.1m while at the trading level there was 35.7 per cent increase to US$140.2m.  Overall cement volumes were around five per cent higher while the average price was little changed overall. Aggregates volumes increased by five per cent and the average price improved by one per cent. In ready-mixed concrete, volumes declined by two per cent while prices were little changed.

In Great Britain, cement deliveries were two per cent higher and the average price was one per cent higher while in aggregates volumes rose by 13 per cent and prices improved by one per cent and in ready-mixed concrete volumes improved by one per cent and prices by five per cent.

In Germany cement deliveries were little changed and the average price improved by one per cent. German aggregates volumes eased by three per cent while prices improved by one per cent and in ready-mixed concrete volumes were down by one per cent while the average price improved by two per cent.

In Poland, cement volumes showed a six per cent recovery, but prices were some five per cent lower. Polish aggregates volumes improved by three per cent and prices by seven per cent, while in ready-mixed concrete volumes were one per cent higher but prices fell by nine per cent.

In France, where Cemex does not sell cement, aggregates deliveries improved by four per cent but prices eased by two per cent, while in and ready-mixed concrete volumes declined by a further six per cent and prices deteriorated by 1 per cent. 

Spanish reversal
In the Mediterranean region, turnover improved by 8.5 per cent to US$1,644.5m and the EBITDA recovered by 2.7 per cent to US$333.3m. The sharp drop in Spanish construction activity appears to have come to an end and Spanish cement deliveries showed a two per cent recovery but prices were five per cent lower. Aggregates shipments continued to fall and were off by a further 12 per cent but prices showed a five per cent improvement while ready-mixed concrete volumes and prices both gained six per cent. In Egypt cement deliveries declined by six per cent but prices rose by 19 per cent in local currency and by 15 per cent in US dollars, while in aggregates volumes jumped by 36 per cent while local prices dropped by 23 per cent and in ready-mixed concrete volumes rose by 12 per cent and prices by 18 per cent.


South America, Central America and Caribbean decline
In South America, Central America and Caribbean, turnover declined by 1.8 per cent to US$2194.8m and the EBITDA was  down by 8.2 per cent to US$727.3m. 

Cement volumes did improve by five per cent and prices were little changed in local currency but declined by five per cent in US dollar terms. Aggregates volumes improved by 15 per cent and the price in local currencies was 1 per cent ahead. In ready-mixed concrete volumes improved by eight per cent and prices by one per cent in local currency.

Colombia is the most important country and here and the cement volume rose by 16 per cent but the local price was off by four per cent, while in aggregates volumes advanced by 20 per cent and prices by one per cent. In ready-mixed concrete local prices were also ahead by  one per cent while volumes advanced by 14 per cent. In Panama, Cemex saw cement deliveries decline by 15 per cent as deliveries to the Panama Canal widening project were reduced but prices were increased by 12 per cent while ready-mixed concrete volumes and prices were little changed.

Asian volumes ahead
The Asian turnover improved by 6.1 per cent to US$611.9m and the EBITDA rose by 9.5 per cent to US$142.7m. Cement volumes improved by nine per cent and prices were three per cent higher. In aggregates, volumes declined by 22 per cent following the previous year’s 64 per cent jump while prices were two per cent higher. The ready-mixed concrete volume declined by another 13 per cent, but the average price was 11 per cent higher. The Philippines is the biggest market and Cemex cement volumes there increased by 11 per cent with strong demand and the introduction of a new grinding mill half way through the year.