CEMEX´S fourth quarter net income increases to 1.754 billion pesos (US$223 million)
February 28, 1997
CEMEX, S.A. de C.V. (OTC: CMXBY) today reported that fourth quarter net income increased to Ps. 1.754 billion (US$223 million), versus Ps. 6.895 million (US$699,000) a year ago. Net income per ADR (ratio 2:1) was Ps. 2.82 (US$0.36) based on an average of 1,243,898,988 shares outstanding during the period. Net income for the year grew to Ps. 7.699 billion (US$977 million), compared to Ps. 7.495 billion (US$759 million) in 1995.
Net sales increased 5% in real terms to Ps. 6.884 billion (US$ 874 million) during the fourth quarter, compared with the same period a year ago. For the quarter, revenues from Mexico represented 45% of the total, Spain 19%, Venezuela 12%, the United States 11%, Colombia 7%, Panama and the Caribbean 6%.
Cash flow (EBITD) increased 5% to Ps. 2.026 billion (US$257 million) for the quarter and 7% to Ps. 8.568 billion (US$1.087 billion) for the year.
During the quarter, operating margin decreased to 21.8%, from 23.4% in 1995, primarily because of higher SG&A expenses at the various subsidiaries. This resulted in quarterly operating income of Ps. 1.498 billion (US$190 million), a 2% decrease compared to the fourth quarter of 1995.
Leverage (total debt / total capitalization) ended the quarter at 53.0%.
During the fourth quarter, the peso depreciated 4.2% (in peso terms) with respect to the dollar, as measured by the interbank exchange rate. Exchange rates used by the Company at December 31, 1995 and December 31, 1996 were Ps. 7.73 and Ps. 7.88 per dollar, respectively.
Rodrigo Treviño, CEMEX´ CFO, said, "Mexico continued its recovery, recording 32% quarterly sales and operating cash flow growth in dollar terms when compared to the same period of 1995 as a result of higher cement and ready-mix volumes and improved cement prices. Colombia´s post-merger process is also well underway, with US$55 million annualized cost savings already identified for 1997."
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.