Latest Cemex results show decline in sales

Cemex's net sales in the third quarter of 2008 totalled US$ 5.8 billion, a -5% decline compared to the same period last year, a company statement has revealed.

The company also reported that EBITDA decreased by -4% in Q3 of 2008 to US$ 1.3 billion versus the same period of 2007, mainly due to the exclusion of the company's Venezuelan operations at the beginning of August this year.

The company statement said, "Lower sales in the quarter were mainly the result of lower volumes which were partially mitigated by better supply-demand dynamics in most of our markets. The infrastructure sector was the main driver of demand in most of our markets."

Free cash flow after maintenance capital expenditures for the quarter was US$ 957 million down -1% from US$ 964 million in the same quarter of 2007. While operating income in the third quarter decreased by -13% to US$ 818 million compared to US$ 940 million in the same period last year.

Commenting on the results Hector Medina, executive vice president of planning and finance, said, "We are living in a time of extraordinary volatility in the financial markets in a challenging operating environment in several of the countries in which we operate. During the quarter, we had slightly better-than-expected EBITDA generation and our diversified portfolio has partially compensated for the downturn in the US, Spain, and the UK. Going forward, we remain focused on strengthening our financial flexibility."