CEMEX report 41% growth in net income in Q2
Company says second-quarter operating and financial performance largely in line with expectations
CEMEX have reported net income of US$289 million during the second quarter (Q2) of 2017, an increase of 41% compared with the same period last year. For the first half of the year the figure reached US$626 million, the highest net income for this period since 2008.
Consolidated net sales reached US$3.6 billion during the second quarter of 2017, an increase of 2% on a like-for-like basis, versus the comparable period in 2016, while operating EBITDA decreased by 8% during the quarter, to US$696 million, compared with the same period in 2016.
Operating EBITDA margin decreased by 1.6 percentage points on a year-over-year basis to 19.5%, reflecting in part an increase in raw materials in some of CEMEX’s ready-mixed concrete operations, higher energy and freight costs, as well as an unfavorable regional mix effect.
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 in Mexico and the US, as well as higher volumes in the company’s European region.
Commenting on the results, CEMEX’s chief executive officer, Fernando A. Gonzalez (pictured), said: ‘Our second-quarter operating and financial performance was essentially in line with our expectations as of the first quarter: good results in Mexico, the US and Europe; and increasing challenges in Colombia and Egypt, and to a much lesser extent the Philippines.
‘In line with our targets, we applied the proceeds from free cash flow generation and asset sales mainly for debt reduction. Our total debt declined by US$676 million during the quarter and by US$3.4 billion since the end of 2015.’
He added: ‘As we announced last week, we have entered into a new facilities agreement for US$4.05 billion under enhanced conditions reflecting our improved credit profile, extending the average life and reducing the cost of debt.’
