CEMEX´S third quarter net income increases 42%
October 25, 1996
Improvement in Mexican operations, completion of Colombian acquisitions and successful refinancing highlight the quarter.
CEMEX, S.A. de C.V. (OTC: CMXBY) today reported that third quarter net income increased 42%, to Ps. 1.190 billion, over third quarter 1995. Net income per ADR (ratio 2:1) was Ps. 1.84 (US$0.24) based on an average of 1,294,157,067 shares outstanding during the period.
Net sales increased 17% in real terms to Ps. 6.401 billion (US$848 million) during third quarter 1996, compared with the same period a year ago. For the quarter, revenues from Mexico represented 40% of the total, Spain 25%, the United States 14%, Venezuela 12%, Panama and the Caribbean 5% and Colombia (Diamante) 4%.
Cash flow (EBITD) increased 23% to Ps. 2.073 billion (US$257 million), and CEMEX´ net cash position was Ps. 3.447 billion (US$457 million) at the end of the quarter.
Operating margin increased to 24.0%, from 22.0% in 1995, primarily because of an increase in Mexico´s margins and the consolidation of Colombia (Diamante). This resulted in quarterly operating income of Ps. 1.536 billion, 28% higher than third quarter 1995.
Leverage (total debt / total capitalization) ended the quarter at 52.7%.
During the third quarter, the peso appreciated 0.7% (in peso terms) with respect to the dollar, as measured by the interbank exchange rate. Exchange rates used by the Company at September 30, 1995 and September 30, 1996 were Ps. 6.405 and Ps. 7.55 per dollar, respectively.
Lorenzo Zambrano, CEMEX´ Chairman and Chief Executive Officer, said, "CEMEX had another active quarter. We completed the acquisition of Cementos Samper, Colombia´s third-largest cement producer and implemented elements of our announced financial strategy. Moreover, Mexico continued its recovery, with CEMEX´ 17% sales growth outpacing the industry."
Founded in 1906, CEMEX is the largest cement producer in the Americas and one of the three largest cement producers in the world, with close to 50 million metric tons of annual production capacity. CEMEX has market-leading operations in Mexico, Spain, Venezuela, Panama and the Dominican Republic and a significant presence in Colombia, the Caribbean and the southwest United States.