Cemex reports highest net income since 2007

Kerry Clines

February 12, 2018

CemexOn Thursday, Feb. 8, 2018, Cemex, S.A.B. de C.V., announced that consolidated net sales for the fourth quarter of 2017 were $3.4 billion, an increase of 4  percent compared to 2016 and adjusting for currency fluctuations. Sales for the year 2017 increased to $13.7 billion, an increase of 3 percent compared to 2016. Operating EBITDA for the fourth quarter decreased by 7 percent to $625 million on a like-to-like basis, and decreased 6 percent to $2.6 billion for the full year compared to 2016. Cemex also reported a net income of $806 for 2017, the highest since 2007.

Additional financial and operational highlights for the fourth quarter and full-year 2017 include the following:

  • The increase in quarterly consolidated net sales was due to higher prices for products in Mexico, the U.S., Europe, as well as higher volumes in those areas and Asia, the Middle East, and Africa.
  • Net operating earnings before other expenses in the fourth quarter decreased by 10 percent to $410 million and decreased by 9 percent to $1.7 billion for the entire year.
  • Operating EBITDA margin during the fourth quarter decreased to 18.3 percent from 20.7 percent in the same period of 2016 and decreased to 18.8 percent from 20.6 percent during 2016.
  • Cemex operations in the United States reported net sales of $838 million in the fourth quarter of 2017, an increase of 4 percent compared to the same period in 2016. Operating EBITDA decreased by 5 percent to $158 million in the quarter, versus $180 million in the same quarter of 2016. 

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“Although 2017 was a challenging year, our two largest markets, Mexico and the United States, performed well with like-to-like increases in their EBITDA,” says Cemex CEO Fernando A. Gonzalez. “We also generated free cash flow after maintenance capex of close to $1.3 billion, with a 50 percent EBITDA-to-free-cash-flow conversion rate and which, together with our asset-divestment initiatives, resulted in pro-forma debt reduction of close to $2.1 billion during the year. We had important headwinds during the year: underperformance in Colombia, Egypt, and the Philippines, as well as increased energy costs, mainly in Mexico. As we have done in the past, we focused on the variables we control to dampen these headwinds, and we continued to deliver solid results.”

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