Cemex Latam Holding sees net sales fall 8% in 2Q18

Cemex Latam Holdings (CLH) reports consolidated net sales of US$280m during the 2Q18, eight per cent lower than in 2Q17, while operating EBITDA reached US$62m, 19 per cent lower than in 2Q17.

In the 2Q18 domestic grey cement, ready-mix and aggregates volumes fell by eight, 14 and 12 per cent, respectively, compared to results in 2Q17. Meanwhile, consolidated prices in US-dollar terms increased by three per cent for cement, by one per cent for ready-mix and remained flat for aggregates.

Jamie Muguiro, CEO of CLH, said: "During the quarter, our results were heavily affected by two external factors... Firstly, in Panama, the construction workers' strike  that started in mid-April lasted for 30 days and was the longest nationwide strike in the recent history of the company. Second, the situation in Nicaragua that started in mid-April, escalated and is having a material impact in economic actively and construction.

"Despite these headwinds, our free cash flow during the quarter reached 46m dollars, 60 per cent higher than in the same period of 2017, and our net debt reduced by 47m, reaching 856m."

In Colombia cement prices in 2Q18 continued to rise as they ahd done since July 2017. From July 2017 to June 2018, cement prices were eight and 11 per cent higher in local and dollar terms, respectively.

Cement and ready-mix sales in Costa Rica rose by 18 and 29 per cent, respectively in 2Q18. In Guatemala cement and ready-mix sales rose by six and four per cent, respectively.