CEMEX updates 2001 estimates
September 4, 2001
CEMEX, S.A. de C.V. (NYSE: CX), announced today it expects to achieve EBITDA of about US$600 million in the current quarter, 15% higher than that in the third quarter of 2000. This should be accompanied by a net debt reduction in the third quarter of about US$250 million, keeping CEMEX on track to achieve its net debt reduction target of US$300 million from existing operations during the second half of 2001. For the year, CEMEX now expects to achieve EBITDA of about US$2.4 billion and remains confident in its ability to achieve its original operating free cash flow generation target of about US$1.2 billion.
Rodrigo Treviño, Chief Financial Officer, said: "We are pleased to see that despite a challenging operating environment, our business model continues to deliver growth rates in line with our long-term, double-digit track record, as well as strong free cash flow generation to support significant net debt reductions. Strength in volumes in the U.S. and Spain, resulting from infrastructure spending, is helping offset lower year-over year sales volumes in Mexico, resulting from the federal government's prudent fiscal policy.
However, the low interest rate environment, coupled with a faster-than-anticipated debt pay down, is expected to result in financing cost savings on the order of US$100 million versus our original expectations. This gives us confidence in our ability to achieve our original 2001 operating free cash flow target of US$1.2 billion. This translates into an increase of approximately 20% in majority net income, excluding non-recurring items."
CEMEX expects to continue participating in the cement industry's global consolidation, and reiterates its commitment to making selective, shareholder value creating acquisitions that fall within its stated capital structure objectives.
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 it is the 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
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José Antonio González