Cemex sees consolidated net sales rise by 2% in 1Q20
Cemex announced a like-for-like consolidated net sales increase of two per cent during the 1Q20 to US$3.1bn compared to the 1Q19. Operating EBITDA rose by one per cent to US$534m in the 1Q20.
The company reported higher prices for products in local currency terms in most regions, as well as higher volumes for three core products in the USA and Asia, Middle East and Africa regions, and higher volumes in Mexico. This was partially offset by lower volumes in Europe and South, Central America and Caribbean regions.
Net operating earnings, before other expenses, in the 1Q20 decreased by six per cent to US$260m on a like-to-like basis. Controlling interest net income (loss) was an income of US$42m in the 1Q20 compared to US$39m in 1Q19. Net debt decreased by US$112m during the 1Q20.
Geographical regions
Net sales in Mexico rose by four per cent in the 1Q20 to US$685m on a like-for-like basis. Operating EBITDA declined by two per cent to US$233m in the 1Q20. Cemex's US operations reported net sales of US$965m in the 1Q20 an increase of 13 per cent on a like-for-like basis. Operating EBITDA rose by 33 per cent to US$163m in the 1Q20.
South, Central America and the Caribbean reported net sales of US$373m in the 1Q20, down eight per cent on 1Q19. Operating EBITDA decreased by eight per cent to US$91m.
In Europe net sales in the 1Q20 decreased by two per cent to US$651m. EBITDA reached US$44m in the 1Q20, down seven per cent on 1Q19.
Net sales in Asia, Middle East and Africa fell by two per cent in the 1Q20 to US$352m. Operating EBITDA reached US$60 in the 1Q20, up nine per cent in the 1Q19.
"The world is going through unprecedented time due to the COVID-19 pandemic. Construction activity across most of our markets is being impacted to varying degrees. However, we are responding rapidly to this health crisis, focussing on three main priorities: first, we are strengthening health and safety, our number one priority for many years, completing our existing standards by developing and implementing special protocols and guidelines to protect our employees, customers, suppliers and communities from the risks of COVID-19; second, we are supporting our customers and leveraging Cemex Go for a digital and substantially low-touch experience; third, we are taking steps to protect the future of our company," said Fernando A González, Cemex CEO.
"Members of Cemex's Board, Executive Committee, and senior leadership have agreed to voluntarily waive a percentage of their salaries or fees during the next three months. Other salaried employees have voluntarily deferred a percentage of their monthly salaries during the next three months. Additionally, we are suspending or reducing capital expenditures, operating expenses, production and inventory levels. As a result of these measures, our pro-forma cash position as of the end of the quarter [1Q20] reached US$1.7bn, a multiple of our average cash balance in the past two years."
