CEMEX's net sales grow 33% and EBITDA 22% in dollar terms for second quarter 2001
July 16, 2001
CEMEX, S.A. de C.V. (NYSE: CX) reported today that its net sales for second quarter 2001 were US$1.8 billion, a 33% growth in dollar terms versus the second quarter 2000. In real peso terms, net sales increased 28% to Ps 16.4 billion.
The net sales increase was due mainly to higher revenues from the company's operations in Mexico, combined with stable revenues from Venezuela, Colombia, and the Caribbean. The higher net sales also reflect the consolidation of Southdown in the United States. Excluding Southdown, net sales grew 7% in dollar terms year over year.
EBITDA (earnings before interest, taxes, depreciation, and amortization), at US$611 million, rose 22% vis-à-vis the same period in 2000, and in real peso terms grew 16% to Ps 5.5 billion. Excluding the consolidation of Southdown, quarterly EBITDA in dollar terms increased 1%.
Second quarter 2001 operating income increased 10% in dollar terms to US$459 million, and 6% in real peso terms, to Ps 4.2 billion.
CEMEX's net income after minority interest during the second quarter grew 79% in dollar terms to US$408 million (US$1.44 per ADS), mainly due to an extraordinary gain of US$131 million resulting from the company's decision to sell its Banacci shares to Citigroup.
Quarterly net income after minority interest in real peso terms was up 72% over the same period in 2000, to Ps 3.7 billion (Ps 2.6 per CPO).
Cash earnings, as defined by EBITDA minus net financial expense, rose 31% compared to second quarter 2000, reaching US$516 million (US$1.82 per ADS). In real peso terms, cash earnings were 26% higher than second quarter 2000, reaching Ps 4.7 billion (Ps 3.31 per CPO).
CEMEX's consolidated free cash flow for second quarter 2001 reached US$301 million, a 31% growth versus the same period a year ago. This free cash flow and other sources of non-operating free cash enabled CEMEX to reduce net debt from existing operations by US$412 million during the quarter.
Interest plus preferred dividend coverage (EBITDA before operating lease payments and cost restatements for inflation divided by interest expense plus dividend on Preferred Capital Securities and Preferred Equity) was 4.02 times for the latest twelve months versus 3.8 times a year ago. Leverage, defined as Net Debt to Trailing Twelve-Month EBITDA, increased to 2.76 times (including the results of Southdown on a pro-forma basis) versus 2.35 times for the same period in 2000.
On a worldwide basis, CEMEX's consolidated cement sales volume for the quarter was 16.5 million metric tons, 30% higher compared to second quarter 2000, while ready-mix volumes, at 4.7 million cubic meters, increased 21%.
In North America, the company recorded a net sales growth of 4% in dollar terms for its Mexican operations, while domestic cement volumes were 6% down versus the second quarter 2000. In the United States, the consolidation of Southdown drove to a 243% increase in net sales. The construction sector in the U.S. remains strong, driven mainly by public infrastructure, and to a lesser extent, residential building.
Operational highlights in Europe include a 6% rise in Spain for domestic cement volumes, and a 4% growth in ready-mix volumes, compared to the same year-ago quarter. Public works continue to be the main driver of cement consumption in Spain.
In South America, quarterly domestic cement volumes for CEMEX's Venezuelan operations grew 11%, and exports were reduced by 19% due to a shift in volumes to meet domestic demand. In Colombia, net sales rose 1% in dollar terms for the second quarter, even though quarterly cement and ready-mix sales volumes decreased 9% and 3% respectively.
CEMEX Philippines' net sales grew 9% in dollar terms, and domestic cement volumes were 24% lower than the year-ago quarter. CEMEX Egypt recorded a 5% decline in domestic cement volumes; net sales measured in dollars were 19% lower than second quarter 2000.
CEMEX is one of the three largest cement companies in the world, with approximately 78 million metric tons of production capacity. It is also the world's largest trader of cement and the world's leading producer of white cement. CEMEX is engaged in the production, distribution, marketing, and sale of cement, ready-mix concrete, aggregates, and clinker through operating subsidiaries on four continents. For more information, visit www.cemex.com.
Daniel Pérez Whitaker
(528) 152 2747
(528) 328 3631
José Antonio González