This was due to higher prices of its products, in local currency terms, in Mexico, the US and in its Europe and Asia, Middle East and Africa regions, as well as higher volumes in the US and our Asia, Middle East & Africa regions.
Operating earnings before other expenses, net, in the first quarter decreased by 5%, to $332 million, while controlling interest net income during the quarter was $26 million from an income of $336 million in the same period of 2017.
Operating EBITDA decreased by 4% during the quarter compared to the same period in 2017, to $535 million, and the operating EBITDA margin during the quarter decreased to 15.8% from 17.7% in the same period of 2017.
Free cash flow after maintenance capital expenditures for the quarter decreased by 1% to negative US$154 million, compared to the same quarter of 2017.
Fernando A. Gonzalez, CEO of Cemex, said: “The first quarter of 2018 was characterised by solid operating results with good consolidated daily volumes and improved pricing performance, both sequentially and on a year-over-year basis.
“However, our EBITDA generation during the quarter was affected by seasonal effects, including adverse weather in our European and U.S. operations, fewer business days and an inventory costing-variation effect.
“We expect the impact of the fewer business days and the inventory effect to revert in upcoming months while we should recover most of the pent-up demand caused by adverse weather to be recovered during the rest of the year.”
He said that for the rest of 2018 Cemex expects favourable consolidated volumes and improving pricing dynamics in most of our markets.
This, together with an expected moderation in the company’s energy cost increases and its initiatives to contain other costs, should translate into increased operating EBITDA generation for the full year.
Cemex said that net sales in its operations in Mexico increased 10% in the first quarter of 2018 to $800 million, compared with $725 million in the first quarter of 2017. Operating EBITDA increased by 12% to US$299 million in the quarter, versus the same period of last year.
In theUnited States Cemex’s operations reported net sales of $856 million in the first quarter of 2018, an increase of 7% on a like-to-like basis from the same period in 2017. Operating EBITDA decreased by 4% on a like-to-like basis to $109 million versus the same quarter of 2017.
Cemex’s operations in South, Central America and the Caribbean reported net sales of $464 million during the first quarter of 2018, representing a decrease of 3% over the same period of 2017.
Operating EBITDA decreased by 21% to $105 million in the first quarter of 2018, from $133 million in the same quarter of 2017.
In Europe, net sales for the first quarter of 2018 increased by 9 % to $805 million, compared with $737 million in the first quarter of 2017. Operating EBITDA was $15 million for the quarter, 52% lower than the same period last year.
Operations in Asia, Middle East and Africa reported a 15% increase in net sales for the first quarter of 2018, to $375 million, versus the same quarter of 2017. Operating EBITDA for the quarter was $62 million, 3% lower than the same period last year.
