Cemex' gearing declines to a still high 164 per cent

During the first nine months of the year, Cemex' turnover eased by 1.9 per cent to US$10,467.4m, while EBITDA was 8.5 per cent ahead at US$2138.1m. The trading profit advanced by 15 per cent to US$1452.2m while the net interest charge declined by 6.3 per cent to US$888.9m. The pretax profit more than trebled from US$164.7m to US$689.5m. The tax charge declined from 128.4 per cent to 18.2 per cent, leading to a net attributable loss being turned into a US$533.6m profit. The net debt at the end of September was 10.4 per cent lower than a year earlier at US$13,965m, giving a gearing level of 163.9 per cent compared with the 183.5 per cent shown a year earlier. However, only three per cent of the gross debt is short term. The number of employees at the end of September was 0.3 per cent lower at US$42,484. In the full year, Cemex is expecting capital expenditure to reach around US$700m, of which some US$460m would be for maintenance.

Mexico accounted for 20.7 per cent of turnover, compared with 20.3 per cent a year earlier and the Mexican share of EBITDA was 37.3 per cent compared with 37.2 per cent a year earlier. The USA represented 28.9 per cent (24.9 per cent) of turnover and 22.3 per cent (19.9 per cent) of EBITDA. South and Central America produced 12.6 per cent (13.6 per cent) of the turnover and 20.3 per cent (22.6 per cent) of EBITDA, while Europe represented 23.9 per cent (24.3 per cent) of turnover and for 14.1 per cent (15.3 per cent) of EBITDA, and Asia and Africa contributed 11.8 per cent (11.5 per cent) of turnover and 14.4 per cent (13.8 per cent) of EBITDA. Cement shipments in the nine-month period showed a 1.4 per cent improvement to 50.78Mt, while aggregates deliveries increased by 1.8 per cent to 113.07Mt and ready-mixed concrete deliveries were off by 1.6 per cent to 39.14Mm³.

The Mexican turnover was 0.6 per cent lower at US$2162.9m, the fourth successive decline. However, EBITDA improved by 8.4 per cent to US$797m and the trading profit rose by 12.8 per cent to US$699.3m. Domestic deliveries of grey cement improved by three per cent and the third quarter showed a 10 per cent advance. Cement prices improved by 18 per cent in local currency, but by just one per cent in US dollar terms. The aggregates volume was very marginally lower and average domestic prices improved by seven per cent, it eased by nine per cent in US dollar terms. Ready-mixed concrete deliveries were off by seven per cent while the local currency price improved by an average eight per cent but came off by seen per cent in US dollar terms.       

The US turnover advanced by 1.8 per cent to US$3021.6m as the trading environment continued to improve and the EBITDA advanced by 21.5 per cent to US$476.4m. At the trading level, the profit jumped by 89.5 per cent to US$177.6m. Housebuilding remained a positive factor, single-family housing increasing by two per cent while overall housing starts were off by the same percentage. Industrial and commercial building activity remained weak while infrastructural demand softened after a strong start as projects were delayed and state spending reduced. Grey cement deliveries increased by four per cent in the nine months but declined by two per cent in the third quarter, with the average price improving by four per cent. Shipments of aggregates improved by three per cent but declined by two per cent in the third quarter. In ready-mixed concrete, delivery volumes rose by two per cent but declined by two per cent in the third quarter with prices improving by one per cent.

The Cemex operations in South America, Central America and the Caribbean saw turnover decline by 9.3 per cent to US$1323.9m and EBITDA was 2.8 per cent lower at US$434.1m and the trading profit was off by 2.4 per cent to US$377.4m. Cement volumes advanced by one per cent over the period but declined by two per cent in the third quarter. Prices in local currency were two per cent ahead while they were off by six per cent in US dollar terms. Aggregates volumes were one per cent higher and local prices were eight per cent ahead, while in ready-mixed concrete, volumes fell by 14 per cent though prices were two per cent ahead. In Colombia, the biggest market, cement volumes declined by five per cent, but local prices improved by seven per cent, with aggregates volumes declining by 15 per cent though prices improved by 13 per cent while in ready-mixed concrete volumes were off by nine per cent, but prices improved by five per cent. In Panama volumes declined across the board and by double figures in cement.   

Cemex' European turnover declined by 3.6 per cent to US$2501.5m but EBITDA edged ahead by 0.4 per cent to US$302.2m while the trading profit improved by 2.9 per cent to US$155.9m. Deliveries of grey cement recovered by one per cent in the nine months but declined by two per cent in the third quarter. Aggregates shipments across the region recovered by four per cent and ready-mixed concrete deliveries were ahead by two per cent. Cement deliveries improved by seven per cent in Great Britain, eased by one per cent in Spain and were broadly stable in Germany and Poland. Cement prices improved by two per cent in Great Britain, while they came off by four per cent in Poland and by two per cent in Germany and Spain. In aggregates volumes rose by six per cent in Great Britain and in France, and by one per cent in Germany but declined by seven per cent in Spain and by one per cent in Poland. Aggregates prices improved by two per cent in Germany and in Poland, were stable in Great Britain but were off by one per cent in France and by two per cent in Spain. Ready-mixed concrete volumes improved by five per cent in France, by four per cent in Poland and by three per cent in Spain but were off by three per cent in Great Britain and stable in Germany. Ready-mixed concrete prices improved by two per cent in both Britain and in Germany, but declined by four per cent in France and in Poland and by six per cent in Spain.   

Asian and African turnover edged ahead by 0.3 per cent to US$1234.1m and EBITDA rose by 12.9 per cent to US$307.8m. Cement volumes improved by four per cent across the region, with volumes advancing by 10 per cent in Egypt and by four per cent in the Philippines. The average cement price was one per cent ahead in local currency terms but off by six per cent in US dollar terms, with prices improving by two per cent in The Philippines but declining by two per cent in Egypt. In aggregates, volumes improved by seven per cent and the average price was four per cent ahead, while in ready-mixed concrete, volumes were off by two per cent, but prices improved by two per cent. There are still no downstream operations in the Philippines.