During the first nine months of the year, Cemex cement shipments improved by 3.2 per cent to 52.69Mt, while ready-mixed concrete deliveries advanced by 3.7 per cent to 40.07Mm² and aggregates shipments by two per cent to 112.59Mt. The company’s turnover was seven per cent higher at US$10,933.1m, while EBITDA was a marginal 0.4 per cent ahead at US$1956m. The trading profit improved by one per cent to US$1330m, while the net interest charge dropped by 35.5 per cent to US$591m. The pretax profit improved by 11.6 per cent to US$804.2m. There was a US$186.8m tax charge, compared with a US$69.7m tax credit, leading to a net attributable profit 21.9 per cent lower at US$590.9m after minorities and discontinued items. The net debt at the end of September was seven per cent lower than a year earlier at US$10,332m, giving a gearing level of 89.4 per cent compared with the 122.2 per cent shown a year earlier and 163.9 per cent the year before that. Some 38 per cent of the debt is at variable rates, with the remainder being fixed and 66 per cent of the debt is in US$ and 27 per cent in euro. The number of employees at the end of September was 4.5 per cent higher at 40,263. In the full year, Cemex is expecting capital expenditure to reach around US$800m, of which some US$550m would be for maintenance.
Mexico accounted for 23.1 per cent of turnover, compared with 22.6 per cent a year earlier and the Mexican share of EBITDA was 46.7 per cent compared with 41.1 per cent a year earlier. The United States represented 26 per cent (25.8 per cent in the year-ago period) of turnover and 24.3 per cent (21.1 per cent) of EBITDA. South and Central America produced 12.4 per cent (9M17: 14 per cent) of the turnover and 15.9 per cent (17.3 per cent) of EBITDA, while Europe represented 26.0 per cent (25.4 per cent) of turnover and for 14.1 per cent (12.5 per cent) of EBITDA. Asia and Africa contributed 9.9 per cent (9M17: 9.7 per cent) of turnover and 8.4 per cent (eight per cent) of EBITDA.
The Mexican turnover was 9.2 per cent higher at US$2526.2m, a higher rate of improvement than the seven per cent seen in the previous year that reversed four successive years of decline. EBITDA improved by a further 5.1 per cent to US$913.3m. Domestic deliveries of grey cement recovered by three per cent and the third quarter showed a nine per cent advance. Cement prices improved by another three per cent in local currency and by one per cent in US dollar terms. The aggregates volume was 12 per cent higher, while average domestic prices improved by eight per cent, but by a more modest six per cent in US dollar terms. Ready-mixed concrete deliveries were ahead by 12 per cent while the local currency price improved by an average eight per cent and by seven per cent in US dollar terms.
The US turnover improved by 7.4 per cent to US$2,843.1m while EBITDA improved by 6.5 per cent to US$476.2m. Housebuilding continued to be a positive factor and single-family housing starts increased by six per cent during the first nine months of the year. Industrial and commercial building activity improved by four per cent in the first eight months. Grey cement deliveries improved by seven per cent in the nine months, reversing a similar rate reduction the year before, while the average price improved by a further three per cent. Shipments of aggregates improved by four per cent over the period, and by three per cent in the third quarter. In ready-mixed concrete, delivery volumes were nine per cent higher over the period and by 10 per cent in the third quarter, with prices being ahead by two per cent over the period and by three per cent in the third quarter.
The Cemex operations in South America, Central America and the Caribbean saw turnover decline by 3.3 per cent to US$1,357.9m while EBITDA was 15.5 per cent lower at US$311m. Cement volumes eased by two per cent over the period and by three per cent in the third quarter. Prices in local currency were ahead by two per cent as they were in US dollar terms. Aggregates volumes declined by nine per cent over the period and by 11 per cent in the third quarter while local prices eased by three per cent. In ready-mixed concrete, volumes fell by 12 per cent with prices being off by some two per cent. In Colombia, the biggest market, cement volumes declined by 10 per cent and local prices fell by 10 per cent. Aggregates volumes declined by 13 per cent though prices were only off by two per cent, while in ready-mixed concrete volumes were off by 13 per cent while prices were stable. In Panama cement volumes dropped by 20 per cent, with prices being one per cent weaker. Downstream, volumes were off by seven per cent in aggregates and by 18 per cent in ready-mixed concrete. Costa Rica saw volumes ahead by six per cent in for cement, by nine per cent in aggregates and by 10 per cent in ready-mixed concrete, and prices were ahead by two per cent, except for aggregates, which saw a 13 per cent reduction.
Cemex' European turnover showed a 9.1 per cent advance to US$2844.1m, but EBITDA only improved by 4.2 per cent to US$276.2m while the trading profit was ahead by 2.5 per cent to US$123.1m. Deliveries of grey cement edged ahead by one per cent. Aggregates shipments across the region were off by one per cent and ready-mixed concrete deliveries were also one per cent lower. Cement deliveries declined by four per cent in Great Britain but rose by four per cent in Spain, by one per cent in Germany and by 8 per cent in Poland. Cement prices were three per cent weaker in Great Britain, but improved by six per cent in Poland, by four per cent in Spain and by two per cent in Germany. In aggregates, volumes were off by two per cent in Great Britain and in Germany but rose by 26 per cent in Spain, eight per cent in Poland and one per cent in France. Aggregates prices were one per cent weaker in Spain but improved immodestly in Great Britain, Germany and France and were ahead by 17 per cent in Poland. Ready-mixed concrete volumes were off by eight per cent Germany, by five per cent in Great Britain and by one per cent in France, but ahead by 27 per cent in Spain and by eight per cent in Poland. Ready-mixed concrete prices declined in Britain but improved elsewhere, notably in Poland.
Asian and African turnover recovered by 8.9 per cent to US$1,087.2m but EBITDA declined by a further 3.7 per cent to US$163.6m. Domestic cement volumes improved by nine per cent across the region, with volumes improving by 11 per cent in Egypt and by 10 per cent in the Philippines. The average cement price in Egypt was 18 per cent ahead in US dollar terms, with prices weakening slightly in The Philippines. In aggregates volumes improved by one per cent and the average price was three per cent ahead, while in ready-mixed concrete, volumes were two per cent ahead and prices improved by five per cent. There are still no downstream operations in the Philippines.
