Cemex sees second quarter boost

Cement producer Cemex reported revenues of US$ 4 billion for the second quarter of 2013, up +4% year-on-year, despite falls in Northern Europe.

Operating earnings before interest, tax, depreciation and amortisation (EBITDA) also increased +4% to US$ 730 million, however the company reported a net loss of US$ 152 million, albeit an improvement compared to the loss of US$ 187 million it reported during the same period last year.

Cemex said the increase in consolidated net sales was mainly due to higher pricing of its products, and higher sales volumes in most of its regions.

However, in Northern Europe – the largest business area by revenues – revenues for the second quarter decreased -1% to US$ 1.08 billion, compared with US$ 1.1 billion in the second quarter of 2012. Operating EBITDA was US$ 108 million for the quarter, -11% lower than the same period last year.

In contrast, Cemex’s US operations reported second quarter sales of US$ 868 million, up +9% year-on-year. EBITDA stood at US$ 80 million, up from US$ 27 million a year before.

In Mexico, revenues were up +2% to US$ 847 million, compared with US$ 833 million in the second quarter of 2012. EBITDA decreased -17% to US$ 250 million.

Cemex’s operations in South, Central America and the Caribbean reported net sales of US$ 561 million, up +6% over the same period of 2012. EBITDA increased +12% to US$ 211 million in the second quarter of 2013, from US$ 189 million last year.

Second-quarter revenues in the Mediterranean region stood at US$ 400 million, +4% higher compared with last year, but EBITDA decreased -2% to US$ 94 million.

And in Asia, Cemex reported a +14% increase in revenues for the second quarter to US$ 162 million, on EBITDA of US$ 38 million, up +29% from the same period last year.

Cemex executive vice president of finance and administration Fernando A González said, “We are implementing targeted cost-reduction initiatives in Mexico and Northern Europe which we expect will result in savings of about US$ 100 million during the second half of 2013.”