Cemex Latin American Holdings sees weak volumes

Cemex Latin American Holdings saw turnover for the first nine months decline by 8.6 per cent to US$848.5m and EBITDA fell by 22.3 per cent to US$187.7m, with the margin coming down from 26.1 to 22.1 per cent. The trading profit declined by 29.7 per cent to US$129.2m. After a 7.7 per cent reduction in financial expenses to US$42.9m and other items, the pretax profit came off by 26.1 per cent to US$96.2m. After tax and minorities, the net attributable profit was 33 per cent lower at US$53.3m. The net debt was 7.9 per cent lower at US$811m, giving a gearing level of 47.6 per cent compared with 56.8 per cent a year earlier, with 63 per cent of the debt being long term.

The cement volume declined by 8.9 per cent to 4.97Mt and domestic deliveries of grey cement came off by 8.2 per cent to 4.37Mt. Aggregates shipments were 8.4 per cent lower at 4.79Mt and ready-mixed concrete deliveries were down by 11.5 per cent to 1.95Mm³. The number of employees declined by 4.5 per cent to 4156.

In Colombia, the biggest single market, turnover declined by 7.6 per cent to US$399.2m and EBITDA fell by 12.4 per cent to US$72.5m. Domestic cement deliveries were 10 per cent lower, while aggregates shipments and ready-mixed concrete deliveries both came down by 13 per cent. The price of cement recovered by three per cent in US dollar terms and by two per cent in the local currency, while aggregates prices were stable in dollar terms while ready-mixed concrete prices improved by two per cent.

In Panama turnover declined by 20 per cent to US$169.4m and EBITDA fell by 41.5 per cent to US$51.24m. Domestic cement deliveries showed 20 per cent drop, but this turned into a 16 per cent reduction in the final quarter. The cement operations also had to deal with a notably lower levels of demand. Aggregates shipments declined by seven per cent over the period but fell by 13 per cent in the final quarter with prices little changed over the year. Ready-mixed concrete deliveries were 18 per cent lower over the period, but just nine per cent down in the final quarter with the average price being down by eight per cent.

In Costa Rica the turnover eased by 1.6 per cent to US$111.9m while EBITDA declined by 8.1 per cent to US$36.8m and the margin declined from 35.2 to 32.9 per cent. Domestic cement deliveries recovered six per cent but came off by four per cent in the third quarter. The price in both US dollar terms and local currency was two per cent higher. Aggregates shipments rose by nine per cent over the period and by 18 per cent in the third quarter, while the average price declined by13 per cent, while ready-mixed concrete deliveries improved by 10 per cent and prices improved by two per cent.

Elsewhere in the region, which includes Nicaragua, Guatemala and El Salvador, turnover was 4.8 per cent lower at US$180.1m and EBITDA came off by 17.1 per cent to US$56.2m. Cement volumes declined by three per cent, while prices were little changed. Aggregates volumes were six per cent higher over the period, but declined by 17 per cent in the third quarter and prices weakened, notably in dollar terms. Ready-mixed concrete volumes improved by five per cent, and by 12 per cent in the third quarter. Guatemala saw improved housing and shopping developments, but in Nicaragua business confidence still has to return.