Cemex reported significant disruption from COVID-19 in 2Q20. Sales declined by 10 per cent YoY and EBITDA fell by six per cent to US$554m. These decreases were attributed to lockdown measures.

The decline in quarterly consolidated net sales was due to lower volumes for the company's three core products in almost all regions. The USA was the one exception with cement volumes growing six per cent.

Net operating earnings before other expenses decreased 17 per cent to US$279m on a like-for-like (LfL) basis. Controlling interest net loss reached US$44m, compared a net income of US$155m in the same quarter of 2019.

“Despite the unprecedented conditions in which we are operating due to the pandemic, I am pleased with our second quarter performance and our quick reaction to implement cost containment measures across all geographies. In the quarter, we saw a rapid V-shaped volume recovery in our core products from trough levels in April, reaching slightly below pre COVID-19 volumes in June,” said Fernando A González, CEO of Cemex.

Regional performances
Net sales in Mexico decreased 10 per cent on a LfL basis to US$568m. Operating EBITDA, on a LfL basis, decreased 10 per cent to US$183m in the quarter, versus the same period of the previous year.

Cemex’s operations in the USA reported net sales of US$1bn, an increase of one per cent from the same period in 2019. Operating EBITDA increased by 16 per cent to US$198m in the 2Q19.

In the Europe, Middle East, Africa and Asia region, net sales decreased by 13 per cent on a LfL basis, compared with the same period of the previous year, reaching US$987m. Operating EBITDA was US$147m for the quarter, LfL 20 per cent lower than the same period last year.

Cemex's operations in the company's South, Central America and the Caribbean region, reported net sales of US$279m, a decline of 30 per cent on a LfL basis to the 2Q19. Operating EBITDA decreased by 25 per cent LfL to US$66m in in the 2Q20, compared to the 2Q19.