Cemex Latin American Holdings depressed by Colombia

Cemex Latin American Holdings saw turnover decline by 5.5 per cent to US$1315.3m and EBITDA fell by 26.7 per cent to US$310.8m, with the margin coming down from 32.2 to 25 per cent. The trading profit deteriorated by 51.5 per cent to US$151.5m and after a further 0.6 per cent increase in financial expenses to US$63.3m and other items, the pretax profit dropped by 66.2 per cent to US$83.7m. After tax and minorities, the net attributable profit was 67 per cent lower at US$46.1m. The net debt was six per cent lower at US$882m, giving a gearing level of 57.3 per cent compared with 66.9 per cent a year earlier, with 63 per cent of the debt being long term.

The cement volume eased by 0.2 per cent to 7.45Mt and domestic deliveries of grey cement came off by 0.5 per cent to 6.54Mt. Aggregates shipments were 3.8 per cent lower at 6.99Mt and ready-mixed concrete deliveries were off by 5.6 per cent to 2.91Mm³. The number of employees declined by 8.7 per cent to 4297.

In Colombia, the biggest single market, turnover declined by 15 per cent to US$565.6m and EBITDA dropped by 47.3 per cent to US$112.8m. Domestic cement deliveries were six per cent lower, while aggregates shipments fell by 17 per cent and ready-mixed concrete deliveries came down by 13 per cent. The price of cement declined by 17 per cent in US dollar terms and by 19 per cent in the local currency, while aggregates prices improved four per cent, but ready-mixed concrete prices eased by two per cent in local currency.

In Panama turnover improved by 3.9 per cent to US$266.3m, but EBITDA was off by 6.6 per cent to US$108.4m. Domestic cement deliveries showed a three per cent recovery, but this turned into a three per cent reduction in the final quarter. The cement operations also had to deal with higher fuel costs and a higher clinker factor as limestone from a different source was used. Aggregates shipments rose 13 per cent over the period but eased by one per cent in the final quarter with prices easing by four per cent over the year. Ready-mixed concrete deliveries were nine per cent ahead over the period, but 12 per cent lower in the final quarter with the average price being little changed. 

In Costa Rica the turnover eased by 1.7 per cent to US$148.9m while EBITDA declined by 12.42 per cent to US$53.1m and the margin declined dropped from 40.1 to 35.7 per cent. Domestic cement deliveries recovered three per cent, but the price in US dollar terms was seven per cent lower, while in local currency the reduction was just three per cent. Aggregates shipments rose by 36 per cent, but the average price dropped by 50 per cent, while ready-mixed concrete deliveries improved by 11 per cent, but prices came down by 14 per cent.

Elsewhere in the region, which includes Nicaragua, Guatemala and El Salvador as well as an import operation in Brazil, turnover was 8.4 per cent higher at US$285.6m, but EBITDA improved by just 0.4 per cent to US$84.8m. Cement volumes increased by nine per cent, while prices were broadly stable. Aggregates volumes just over doubled following the previous year’s 66 per cent fall while the price declined by 16 per cent in dollar terms. Ready-mixed concrete volumes jumped by 45 per cent while prices were some 11 per cent lower.