CEMEX reports a solid first quarter of 1999: Net sales increased 13% and EBITDA grew 16% in dollar terms
April 20, 1999
CEMEX S.A. de C.V. (CMXBY: OTC) announced today that its net sales in the first quarter of 1999 increased 6% in real terms to Ps. 10.646 billion versus the same quarter of 1998. In dollar terms, net sales grew 13% in the first quarter to US$1.119 billion.
Similarly, EBITDA increased 9% in real terms during the first quarter of 1999 to Ps. 3.788 billion. In dollar terms, EBITDA rose 16% to US$398 million during the first quarter as compared to US$342 million during the same period a year ago.
"Our strong performance for the first quarter has resulted from our continued focus on customer service and reflects the success and effort in furthering our global strategy", said Héctor Medina, executive vice president of Planning and Finance.
First quarter cash earnings (EBITDA less net interest expense) for 1999 grew 17% in real terms versus the prior year, to Ps. 2.706 billion (Ps. 4.45 per ADR), or 25% in dollar terms to US$285 million (US$0.47 per ADR). The ADR ratio is 2:1 per ordinary share.
Operating income increased 10% to Ps. 3.014 billion for the first quarter 1999. In dollar terms, it reached US$317 million, an 18% growth as compared to the same period a year ago. Operating margin was 28.3% during the first quarter, versus 27.1% for the same period a year ago.
Majority net income during the first quarter of 1999 rose 54% to Ps. 2.848 billion (including monetary position gains of Ps. 1.473 billion), compared to Ps. 1.845 billion (which include monetary position gains worth Ps. 1.677 billion). In dollar terms, majority net income increased 65% to US$299 million, from US$182 million.
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) was 3.12 times for the trailing twelve months versus 2.62 times a year ago. Leverage as defined by net debt to trailing twelve month EBITDA declined to 3.16 times, versus 3.65 times at the end of the first quarter of 1998.
Founded in 1906, CEMEX is one of the three largest cement companies in the world with approximately 61 million metric tons of production capacity. Through operating subsidiaries positioned in three different continents, CEMEX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker. In addition, the company is the world´s leading producer of white cement and the world´s largest trader of cement and clinker.