CEMEX net sales grow 12% and free cash flow 21% during third quarter 2000
October 17, 2000
CEMEX, S.A. de C.V. (NYSE: CX) announced today that its third-quarter net sales rose 12% to US$1.39 billion, compared with the same period of 1999. Net sales increased 12% in real peso terms to $13.2 billion.
The rise in net sales came as a result of stronger dollar prices in Mexico, the Philippines, Venezuela and Colombia; and the consolidation of the acquisition in Egypt. Excluding consolidation of acquisitions, net sales grew 7% in dollar terms.
Consolidated free cash flow increased 21% for the third quarter compared to the same year-ago period, reaching US$282 million. In real peso terms, quarterly free cash flow was up 22% in real peso terms to $2.7 billion.
Third-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) rose 8% to US$517 million. EBITDA margin was 37.1% as a percentage of sales, compared to 38.5% last year. EBITDA for the quarter jumped 7% in real pesos to $4.8 billion.
Héctor Medina, Executive Vice President of Planning and Finance, said, "This has been CEMEX's strongest quarter in EBITDA, free cash flow, and cash earnings generation, and because of that we have been able to significantly reduce our debt. Our markets continue to perform very well as we continue to see volume growth and stable pricing in most of our markets."
Operating income grew 12% for the quarter to US$435 million, and rose 11% in real peso terms compared to the same year-ago quarter, to $4.1 billion. As a percentage of sales, third-quarter operating margin was 31.2%, compared with 31.3% a year earlier.
CEMEX's majority net income for the third quarter increased 4% year-over-year to US$262 million and grew 3% in real peso terms to $2.5 billion. Third-quarter majority net income was negatively affected principally by a US$35 million increase in taxes, that was mostly due to a change in accounting for deferred taxes and provisions for future taxes.
Quarterly cash earnings (EBITDA minus net financial expenses) were up 15% to US$415 million. Cash earnings per ADS were US$1.49, up from US$1.43 a year earlier, and net earnings per ADS were US$0.94, down from US$1.00 a year earlier.
Interest plus preferred dividend coverage (EBITDA before operating lease payments and cost restatements for inflation divided by interest expense plus dividend on preferred capital securities) increased to 4.0 times for the trailing twelve months, compared to 3.52 times for the same period a year ago.
Leverage (net debt to trailing twelve-month EBITDA) declined to 2.16 times, versus 2.76 times last year. Net debt, at US$4.2 billion, decreased US$619 million compared with the same quarter last year and by US$250 million compared with the second quarter of this year.
CEMEX's worldwide cement sales volumes for the third quarter were 13.1 million metric tons, up 20% versus the same quarter a year ago, and quarterly ready-mix sales volume increased 10% to 4.0 million cubic meters.
CEMEX North American region's (which includes its Mexican and U.S. operations) quarterly net sales climbed 14% to US$853 million. The region's EBITDA grew 6% to US$362 million.
The company's South America & Caribbean region's third-quarter net sales grew 17% year-over-year to US$290 million, and EBITDA rose 24% to US$103 million.
Quarterly net sales for CEMEX's Europe, Asia & Africa region increased 22% to US$286 million. The region's EBITDA grew 10% to US$98 million.
CEMEX is one of the three largest cement companies in the world with approximately 65 million metric tons of production capacity. It is also the world's largest trader of cement and the world's leading producer of white cement. CEMEX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker through operating subsidiaries in four different continents. For more information, visit www.cemex.com
Daniel Pérez Whitaker
(528) 152 2747
(528) 328 3631
José Antonio González