Cemex announced that its 4Q19 net sales remained flat at US$3.3bn and fell for the full year by one per cent to US$13.1bn. Operating EBITDA, on a like-for-like basis, fell by 15 per cent in 4Q19 to US$554m and fell by 10 per cent for the full year to US$2.4bn.
Cemex attributed the fall in net sales lower volumes in all regions, which higher prices in local currency were unable to offset. Net operating earnings before other expenses in 4Q19 decreased by 31 per cent to US$282m and were down by 21 per cent to US$1.3bn for the full year in 2019 on a like-for-like basis.
"In a very challenging year with weaker macroeconomic and market conditions prevailing in several of our operations, we were able to limit the downside to our EBITDA and free-cash-flow generation through decisive and proactive initiatives under our 'A stronger Cemex' programme,' initiatives, which will further help in strengthening our capital structure and reposition our portfolio for higher growth," reported Cemex.
"Climate change been a priority for Cemex for many years. Our efforts have brought significant progress to date, but we need to do more. This is why we have defined a more ambitious target for CO2 emissions by 2030: a reduction of 35 per cent to ensure alignment with the Paris Agreement commitments. In addition, we are now establishing an ambition to deliver net-zero CO2 concrete by 2050. We will publish a detailed proposition paper on climate action on 18 February.”
Consolidated corporate results
Net debt and perpetual notes fell by US$163m on a like-for-like basis in 4Q19 to US$722m. In 2019 net debt plus perpetual notes decreased by US$400m, a four per cent fall from 2018.
Geographical markets
Net sales in Mexico fell by 11 per cent on a like-for-like basis in 4Q19 to US$722m. Operating EBITDA decreased by 21 per cent in 4Q19 to US$277m, versus 4Q18.
Net sales in the USA rose to US$935m, up eight per cent on 4Q18, while operating EBITDA fell by 18 per cent to US$149m, compared to 4Q18.
In south, central and the Caribbean, Cemex reported net sales of US$399m in 4Q19, down three per cent on 4Q18. Operating EBITDA rose by eight per cent to US$101m in 4Q19, compared to 4Q18.
Europe had net sales of US$741m in 4Q19, down one per cent on 4Q18 and operating EBITDA was US$98m in 4Q19, 14 per cent higher than in 4Q18.
Finally, net sales in Asia, Middle East and Africa fell by four per cent in 4Q19 to US$354m versus 4Q18. Operating EBITDA was one per cent higher in 4Q19 at US$50m compared to 4Q18.
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