Cemex sees moderate growth

Cement producer Cemex reported net sales of US$ 7.4 billion during the first six months of 2012, a like-for-like increase of +2% compared to the first half of last year.

Operating earnings before interest, tax, depreciation and amortisation (EBITDA) were up +17% year-on-year to US$ 1.2 billion - boosted by higher contributions from the US, South America and Asia divisions as well as cost reduction initiatives.

The modest overall growth in revenues reflected weaker conditions in Northern Europe and the Mediterranean. Cemex's largest division by revenues - Northern Europe - saw sales drop -8% on a like-for-like basis during the first half to US$ 2 billion. Sales in the Mediterranean fell from US$ 913 million a year ago to US$ 761 million in the first six months of 2012.

Offsetting these declines, revenues in Mexico grew +4% during the first half to US$ 1.7 billion, while revenues in the US jumped +23% to US$ 1.5 billion. Cemex's South, Central America and Caribbean business also saw sales increase +25% to US$ 1 billion, while revenues from Asia were up 8% year-on-year to US$ 270 million.

Fernando A González, executive vice president of finance and administration at Cemex noted that the three months to June 2012 represented the company's fourth consecutive quarter with a year-on-year EBITDA increase.

"We are particularly pleased with the quarterly performance of our operations in the US, South, Central America and the Caribbean, and Asia regions," Mr González said.