Net income increased 45% in third quarter 1997
October 24, 1997
CEMEX S.A. de C.V. (OTC:CMXBY) announced today that net income increase 45% in real terms (55% in dollar terms) over the third quarter of 1996 to Ps. 1.903 billion (US$245 million). Net income for the third quarter of 1996 was Ps. 1.308 billion (US$158 million). Net income per ADR (ratio 2:1) was Ps. 3.08 (US$0.40) based on an average of 1,234,179,807 shares outstanding during the quarter.
In the third quarter, net sales increased 11% in real terms (18% in dollar terms) versus the same period a year ago to Ps. 7.799 billion (US$1.002 billion). Net sales for the third quarter of 1996 were Ps. 7.039 billion (US$848 million).
This increase is attributable to improving volumes and the consolidation of Samper beginning in 1997. Mexico represented 43% of the net sales for the third quarter, Spain 18%, the United States 12%, Venezuela 11%, Colombia 10% and the Caribbean and Panama 6%.
Operating income increased 10% in real terms (18% in dollar terms) to Ps. 1.866 billion (US$240 million) for the quarter.
Rodrigo Treviño, CEMEX´s CFO, said "The results of the third quarter are in line with our expectations and show the growth and stability that our geographically diversified asset base provides. They also demonstrate the outcome of our efforts to strengthen the financial structure, with coverage of over 2.5 times and leverage under 50%."
Cash flow (EBITD) in the quarter was Ps. 2.489 billion (US$320 million), an increase of 9% in real terms (17% in dollar terms) over the third quarter of 1996 due to improvement in the Mexican, Venezuelan and US operations and the full consolidation of Samper.
Third quarter financial expenses were Ps. 976 million (US$126 million), a 27% decrease over the same period in 1996 in real terms (22% in dollar terms). Cash earnings (EBITD less net financial expenses) were Ps. 1.585 billion (US$204 million) in the quarter, 50% higher in real terms (60% in dollar terms).
Leverage (total debt / total capitalization) at the end of the quarter was 49.9%, lower than the 52.7% at September 1996 and the 51.7% level at June 1997.
Interest coverage in the third quarter was 2.55 times, and 2.03 times for the trailing twelve months.
Founded in 1906, CEMEX is the largest cement producer in the Americas and one of the three most important producers of cement in the world, with a production capacity of approximately 50 million metric tons per year. CEMEX is the market leader in its operations in Mexico, Spain, Venezuela, Panama, and the Dominican Republic; and has a significant presence in the markets of Colombia, the Caribbean, and the southwest region of the United States of America.