Cemex SAB de CV (ADR)(NYSE:CX) Net Income Jumps 72% In The First Three Quarters Of 2017


Cemex SAB de CV (ADR)(NYSE:CX) reported that consolidated net sales came at U.S.$3.5 billion during the Q3 2017, showcasing a jump of 2%, or a growth of 1% on a like-to-like basis for the current operations and adjusting for currency changes, as compared to the comparable period in 2016. Operating EBITDA dropped by 8% during the quarter to U.S.$702 million over the same period in 2016.

The details

Cemex reported that the jump in consolidated net sales in Q3 2017 was due to higher prices for company products in the U.S. and Mexico, as well as higher cement volumes in Europe, Asia Middle East and the U.S. and Africa regions. Controlling interest net income during the reported quarter came at U.S.$289 million compared to U.S.$286 million in the comparable period last year. Operating earnings before other expenses in the third quarter dropped 9% to U.S.$494 million over the same period of 2016.

Cemex announced that operating EBITDA dropped during the third quarter by 8% to U.S.$702 million. Operating EBITDA margin dropped by 2.2% on a YoY basis hitting 19.8%, showcasing in part freight costs and higher energy, higher costs in raw materials in some of their ready-mix operations, and the impact of lower volumes.

Free cash flow post maintenance capital expenditures for the third quarter came at U.S.$435 million, versus U.S.$548 million in the comparable quarter of 2016. Fernando A. Gonzalez, the CEO of Cemex, expressed that they are delighted with the double-digit, year-to-date development in operating EBITDA in their two leading markets – the U.S. and Mexico, which showcase around two-thirds of their total EBITDA generation.

In addition, the debt leverage during the third quarter reached 3.98 times. This is the first time that company’s leverage ratio declined below 4 times since the Q3 2008. This will continue leading to further savings in their financial expenses.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.