Displaying items by tag: Mexico

Mexico: Cemex has reduced its year-on-year net loss in the third quarter of 2012 due to steady sales and an increase in operating cash flow. However, the Mexican cement conglomerate has confirmed that over 1000 jobs will leave the company by December 2013.

The Mexican conglomerate reported a net loss for the quarter of US$203m, compared with a loss of US$730m in the third quarter of 2011. It noted a 13% increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) to US$730m from US$671m in the same quarter in 2011. Sales fell by 2% in dollar terms to US$3.9bn as a result of weaker currencies but rose by 2% from 2011 when adjusted for currency fluctuations. Consolidated cement sales volumes fell by 2% to 17.1Mt. Operating profit rose by 35% to US$410m.

"An improvement in pricing and volume in several of our regions as well as the continued success of our transformation effort has led to the highest operating EBITDA margin in three years," said Fernando Gonzalez, executive vice president of finance and administration.

Cemex generated EBITDA of US$27m in the US, a second consecutive quarter of positive cash flow in that market as sales rose by 12% from 2011 to US$826m. In Mexico, sales were 2% higher at US$875m, and EBITDA rose by 9% to US$313m. Sales rose in Central and South America and in Asia, although they were lower in both northern and southern Europe.

Gonzalez also said that IBM will be hiring around 450 Cemex workers, or 1% of its global staff, in a previously announced outsourcing deal. Another 675 people, or 1.5% of its workforce, will be made redundant. The staff downsizing is expected to be completed by December of 2013.

Mexico: Based on results for the months of July and August 2012 and preliminary estimates for the month of September 2012, the Mexican cement giant Cemex currently expects to report an improvement in its like-for-like net sales and earnings before tax, depreciation and amortisation (EBITDA) its 2012 third quarter results, on a consolidated basis.

Cemex expects that net sales for the quarter will decline by approximately 2%, although net sales on a like-to-like basis, which considers currency fluctuations, are expected to grow by approximately 3%. It expects its operating EBITDA to grow by about 9% and operating EBITDA, on a like-to-like basis, is expected to grow by approximately 13%.

The expected improvements are broadly in line with improvements seen in the first half of 2012 compared to the first half of 2011.

Mexico: Mexico's cement giant CEMEX has released its financial results for the second quarter of 2012. These show total consolidated net sales of US$3.9bn during the period, a 1% rise on a like-to-like basis compared to the second quarter of 2011. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 11% during the quarter to US$702m. On a like-to-like basis operating EBITDA increased by 22% in the same period.

Cemex attributed the increase in consolidated net sales on a like-to-like basis to higher prices in local currency terms in all of its regions. It reported that infrastructure and residential sectors were the main drivers of demand in most of its markets.

Net sales in Cemex's operations in Mexico decreased by 14% in the second quarter of 2012 to US$833m compared with US$968m in the second quarter of 2011. Operating EBITDA decreased by 4% to US$300m versus the same period of 2011. The groups's operations in the US reported net sales of US$795m for the quarter, up by 15% year-on-year. Here its operating EBITDA increased to US$27m, comparing favourably to a loss of US$17m in the same quarter of 2011.

In Northern Europe, net sales for the second quarter of 2012 decreased by 18% to US$1.10bn, compared with US$1.34bn in the second quarter of 2011. Operating EBITDA was US$122m for the quarter, a 19% fall from 2011. Second-quarter net sales in the Mediterranean region were US$384m, 20% lower compared to the US$477m taken during the second quarter of 2011. Operating EBITDA decreased by 23% to US$96m for the quarter compared to the same quarter in 2011.

Cemex's operations in South & Central America and the Caribbean reported net sales of US$529m during the second quarter of 2012, representing an increase of 20% over the same period of 2011. Operating EBITDA increased by 58% to US$189m in the second quarter of 2012 from US$120m in the second quarter of 2011. Operations in Asia reported a 10% increase in net sales year-on-year to US$142m compared to the second quarter of 2011. In this region its operating EBITDA was US$30m, up by 35% from the same period of 2011.

Fernando A González, Executive Vice President of Finance and Administration, said, "We are pleased with our 22% growth in operating EBITDA on a like-to-like basis, on back of a 1% growth in consolidated net sales. This is the highest EBITDA generation since the third quarter of 2009 and the fourth consecutive quarter with a year-over-year EBITDA increase. We are particularly pleased with the quarterly performance of our operations in the United States, South & Central America and the Caribbean and Asia regions."

Mexico: Mexican cement giant Cemex has reported that sales growth in its operations in the United States, Central and South America and the Caribbean helped it to narrow its first-quarter loss in 2012.

"The favourable performance in most of our regions leads us to believe that we are in the initial stages of a turnaround," said Fernando Gonzalez, Cemex's executive vice president of finance and administration, who added that the quarter marked Cemex's sixth consecutive quarter of top-line growth.

Sales rose by 4% year-on-year in the January-March 2012 period to US$3.5bn. Higher sales in the US helped compensate for weaknesses in Mexico and Europe, although the US operations were still a drag on operating earnings before interest taxes, depreciation and amortisation (EBITDA).

Cemex said its operating EBITDA rose by 7% on the year to US$567m. On a like-to-like basis for its ongoing operations and adjusting for currency fluctuations, operating EBITDA increased by 10%.

Cemex's net loss for the quarter was US$26m, narrower than a loss of US$229m loss a year earlier.

Mexico: Cemex has paid 20% of the US$361m in taxes it owes the Mexican government, with the rest due in January 2013.

The company said it made a US$72m payment on 1 March 2012. It said it has an option to extend the January 2013 obligation and opt for 36 instalments instead, a move that would cost the company a bit more.

"Cemex thinks it has adequate provisions to meet the (tax) requirement," the company said in a statement.

In 2008 the Supreme Court overturned a ruling that protected Cemex from paying taxes linked to investments in offshore tax havens. The court cited several articles in Mexico's income tax law that required Mexican companies to pay taxes locally on investments in countries where there are no taxes or where levies are 75% lower than in Mexico.

Mexico: Cemex Chairman and Chief Executive Lorenzo Zambrano has slammed Mexico's antitrust commission and reiterated that the company intends to appeal a fine for allegedly blocking competitors from bringing cement into Mexico. Earlier in February 2012, the Federal Competition Commission (CFC), fined Cemex US$800,000 following an investigation into a failed attempt by a competitor to import cement via a silo ship in 2004.

"We've done nothing illegal," Zambrano said, adding that Cemex used legal measures to combat, "what I personally consider was going to be contraband." Zambrano charged the CFC with having an 'attitude of vengeance,' that he said Cemex had suffered for some time. "They didn't prove anything but imposed the fine. We're going to appeal and we're going to win," he added.

The antitrust investigation followed a complaint by a group that was blocked from importing cement in Mexico from Russia in 2004. Comercio para el Desarrollo Mexicano (CDM), formed by local entrepreneurs and several foreign partners, was kept from unloading the shipment. The CFC voted 4-1 to fine Cemex for what it said was a boycott. The CFC said that it had determined that Cemex has substantial power in the wholesale market for cement, and that it systematically carried out actions to keep out imported cement, including using its influence in the cement industry chamber.

Zambrano said Cemex's share of the domestic market is below 50%, when in earlier years, after a series of acquisitions, it had been as high as 68%. "Nothing's been said about the millions of tons of cement capacity that have been installed in Mexico by our competitors," he added.

Mexico: Mexico's antitrust commission said it has fined the country's biggest cement company Cemex US$796,000 following an investigation into a failed attempt by a competitor to import cement into Mexico in 2004.

The Federal Competition Commission (CFC) said that the fine was for 'relative monopolistic practices,' which can include displacing competitors from the market.

Cemex said that it had been notified of the ruling, which it considers unfounded, and plans to contest it. "Cemex always acts in strict accordance with the law and will proceed with the legal resources that apply in this case," the company said.

The antitrust investigation followed a complaint by a group that was blocked from importing cement from Russia in 2004. Comercio para el Desarrollo Mexicano (CDM), which had been formed by local entrepreneurs and several foreign partners, was kept from unloading a 26,000t shipment, and had said it intended to import up to 0.5Mt/yr.

Mexico: Cemex has reported rises in its net sales for both the fourth quarter of 2011 and the full year. Geographically this increase for the fourth quarter was due to higher volume and prices in local-currency terms in the United States, northern Europe and Latin America regions. Sales were flat in Mexico, the Mediterranean region and Asia.

For the group as a whole consolidated net sales increased by 6% during the fourth quarter of 2011 to approximately US$3.7bn and increased by 8% for the full year to US$15.1bn versus the comparable periods in 2010. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 13% during the fourth quarter of 2011 to US$542m and increased by 1% for the full year to US$2.3bn versus 2010. The infrastructure and residential sectors were the main drivers of demand in most of its markets.

Fernando A Gonzalez, Executive Vice President of Finance and Administration, said, "This is the fifth consecutive quarter of top-line growth in our results. We are particularly pleased with the quarterly performance of our operations in northern Europe; the South, Central America and Caribbean region; and the United States. Regarding our full-year results, we saw net sales and operating EBITDA growing for the first time in four years."

Net sales in the company's operations in Mexico decreased 9% in the fourth quarter of 2011 to US$818m, compared with US$902m in the fourth quarter of 2010. Operating EBITDA increased by 7% to US$307m versus the same period of 2010.

Cemex's operations in the United States reported net sales of US$682m in the fourth quarter of 2011, up by 19% from the same period in 2010. In northern Europe, net sales increased by 16% to US$1.1bn, compared with US$950m in the fourth quarter of 2010. In the Mediterranean region sales were US$385m, 14% lower versus those in the comparable period of 2010. South, Central America and the Caribbean reported net sales were US$447m during the fourth quarter of 2011, representing an increase of 22% over the same period of 2010.

In Asia net sales were flat reaching US$124m.

The Americas: Cemex has announced its financial results for the third quarter of 2011. These show that its consolidated net sales increased by 5% compared to the same period of 2010 to approximately USD3.9bn. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 1% during the quarter to USD658m compared to 2010. Operating income in the third quarter increased by 7% to USD305m, from the comparable period in 2010.

Cemex attributed the increase in consolidated net sales to higher sales, mainly from its operations in northern Europe, the United States and South & Central America and the Caribbean. It said that the infrastructure and residential sectors were the main drivers of demand in those and other regional markets.

Cemex's net sales in Mexico decreased by 1% in the third quarter of 2011 to USD856m, compared with USD868m in the third quarter of 2010. Operating EBITDA of USD285m was unchanged.Operations in the US reported net sales of USD713m in the third quarter of 2011, up by 4% from the same period in 2010. Operating EBITDA was a loss of USD10m.

Cemex's operations in South & Central America and the Caribbean reported net sales of USD453m, a 24% increase. In this region, its operating EBITDA increased by 33% to USD144m, compared to USD108m in 2010.

Fernando A González, Executive Vice President of Finance and Administration, said, "This is the fourth consecutive quarter of top-line growth in our results. We also saw stable consolidated pricing on a quarter-on-quarter basis in local-currency terms. We are particularly pleased with the quarterly performance of our operations in the Northern Europe and the South, Central American and Caribbean regions."

"We have raised USD80m in asset sales during the first nine months of 2011 and expect to raise an additional USD100-200m during the fourth quarter. We estimate total proceeds from asset sales will reach USD1bn by the end of 2012."

"We also continue to be confident in our ability to meet all of our financial obligations. We have also prepaid all of maturities under our Financial Agreement until December 2013 and proactively bolstered our liquidity needs," he added.

Mexico: Lorenzo Zambrano, the chairman and chief executive of Cemex, has announced that he expects the company to raise USD1bn from asset sales by the end of 2012. This is part of a continuing strategy to lower its debt, including USD180m in 2011.

In a webcast meeting with investors Zambrano said that the highly leveraged Cemex doesn't want to own assets that produce less than a 10% return on capital. "We will only sell assets that will improve our return on capital and help us to deliver our balance sheet," he stated.

Cemex's heavy debt load, USD18.4bn in total debt plus perpetual notes as of 30 June 2011, coupled with a slow recovery in key markets has contributed to investor pessimism that has knocked Cemex's share price down sharply. Zambrano added that Cemex hadn't anticipated the extent of the effects of the recession in the US, one of its largest markets along with Mexico, but that he expects Cemex's US operations to be profitable in 2012.