CEMEX net sales up 7% in second quarter
Higher prices and increased demand in key markets help boost sales and growth
CEMEX have reported net income of US$382 million during the second quarter of 2018, an increase of 32% compared with the same period last year.
Consolidated net sales reached US$3.8 billion during the second quarter of 2018, a rise of 7% on a like-for-like basis, versus the comparable period in 2017, while operating EBITDA increased by 4% during the quarter, to US$714 million, compared with the same period in 2017.
CEMEX said the increase in consolidated net sales on a like-for-like basis was due to higher prices of their products in local currency terms across all of the company’s operating regions, as well as higher volumes in Mexico, the US, Europe, Asia, the Middle East and Africa.
Commenting on the results, CEMEX’s chief executive officer, Fernando A. Gonzalez, said: ‘We are encouraged by the very favourable volume dynamics we saw in most of our portfolio during the quarter, with improvements in pricing this should translate into higher profitability during the second half of the year.
‘Our operations in the U.S. and Europe indicate a strong sequential growth in volumes resulting from strong demand and pent-up activity after adverse weather conditions in the first quarter, as well as improved pricing dynamics.
‘In Mexico, we are pleased with the year-over-year, double-digit growth in ready-mixed and aggregates volumes and high-single-digit increase in prices. In addition, in our Asia, Middle East and Africa region, we saw a high single-digit growth in cement volumes in the Philippines and Egypt with favourable sequential pricing dynamics.’
CEMEX have also announced a comprehensive plan to deliver enhanced shareholder returns. During the next two-and-half-years, the company said it will optimize its portfolio by focusing on markets with the greatest long-term potential and selling assets worth up to US$2 billion.
Mr Gonzalez said: ‘We will also implement actions to achieve US$150 million in cost savings as an opportunity to continue improving our profitability. Furthermore, we will reduce our total debt by US$3.5 billion by the end of 2020, and we will return capital to our shareholders through an annual cash dividend starting with US$150 million in 2019.’
