CEMEX’s Consolidated Fourth Quarter 2019 Financial and Operational Highlights
- The performance of quarterly consolidated net sales on a like-to-like basis was due to higher prices for our products, in local-currency terms, in all our regions, that were offset by lower volumes.
- Operating earnings before other expenses, net, in the fourth quarter decreased 31% to US$282 million and decreased by 21%, to US$1.3 billion, for the full year 2019, both on a like-to-like basis.
- Controlling interest net loss during the quarter was US$238 million, compared with a loss of US$37 million in the same period of 2018. Controlling interest net income for the full year decreased to US$143 million from US$528 million in 2018.
- Operating EBITDA on a like-to-like basis decreased 15% during the quarter to US$554 million and decreased by 10% for the full year to US$2.4 billion, as compared to the same periods in 2018.
- Operating EBITDA margin during the quarter decreased to 17.0% from 19.9% in the prior year period. For the full year, operating EBITDA margin decreased to 18.1% from 19.9% during 2018.
- Free cash flow after maintenance capital expenditures for the quarter increased by 38% to US$526 million, compared with the same quarter of 2018. For the full year 2019, free cash flow after maintenance capital expenditures reached US$695 million and conversion of EBITDA into free cash flow after maintenance capex reached 29%.
“In a very challenging year with weaker macroeconomic and market conditions prevailing in several of our operations, we were able to limit the downside to our EBITDA and free-cash-flow generation through the decisive and proactive initiatives under our ‘A Stronger CEMEX’ program,” said Fernando A. Gonzalez, Chief Executive Officer of CEMEX. “We are cautiously optimistic about the outlook for 2020, with expected improved market conditions in our two main markets, Mexico and the U.S., and continued favorable performance in our Europe region. We remain committed to our ‘A Stronger CEMEX’ initiatives, which will further help in strengthening our capital structure and reposition our portfolio for higher growth.”
“Climate change has been a priority for CEMEX for many years. Our efforts have brought significant progress to date, but we need to do more. This is why we have defined a more ambitious target for CO2 emissions by 2030: a reduction of 35% to ensure alignment with the Paris Agreement commitments. In addition, we are now establishing an ambition to deliver net-zero CO2 concrete by 2050. We will publish a detailed position paper on climate action on February 18.”
Consolidated Corporate Results
During the fourth quarter of 2019, controlling interest net loss was US$238 million, versus a loss of US$37 million in the same period last year. Controlling interest net income for the full year was US$143 million, a decline from an income of US$528 million in 2018.
Net debt plus perpetual notes decreased by US$163 million during the quarter. During 2019, net debt plus perpetual notes was reduced by approximately US$400 million, which represents approximately a 4% reduction from the debt level as of the end of 2018.
Geographical Markets Fourth-Quarter 2019 Highlights
Net sales in Mexico decreased 11% on a like-to-like basis in the fourth quarter of 2019 to US$722 million. Operating EBITDA, on a like-to-like basis, decreased 21% to US$227 million in the quarter, versus the same period of the previous year.
CEMEX’s operations in the United States reported net sales of US$935 million in the fourth quarter of 2019, an increase of 8% on a like-to-like basis from the same period in 2018. Operating EBITDA decreased by 18% on a like-to-like basis to US$149 million versus the same quarter of 2018.
CEMEX’s operations in South, Central America and the Caribbean reported net sales of US$399 million during the fourth quarter of 2019, a decline of 3% on a like-to-like basis over the same period of 2018. Operating EBITDA increased by 8% on a like-to-like basis to US$101 million in the fourth quarter of 2019, in contrast to the same quarter of 2018.
In Europe, net sales for the fourth quarter of 2019 decreased by 1% on a like-to-like basis, compared with the same period of the previous year, reaching US$741 million. Operating EBITDA was US$98 million for the quarter, 14% higher than the same period last year on a like-to-like basis.
Net sales in Asia, Middle East and Africa decreased 4% in the fourth quarter of 2019 to US$354 million versus the same quarter of 2018 on a like-to-like basis. Operating EBITDA for the quarter was US$50 million, 1% higher on a like-to-like basis than the same period last year.
CEMEX is a global building materials company that provides high-quality products and reliable services. CEMEX has a rich history of improving the wellbeing of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future.
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