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CEMEX posts strong growth in cement volumes during Q4

Building materials giant CEMEX has announced strong results in the fourth quarter of 2020 with EBITDA growing at double-digit year-on-year rates in most regions.
February 12, 2021 Read time: 2 mins
CEMEX says its Q4 results were boosted by increased sales in Mexico and the US
CEMEX says its Q4 results were boosted by increased sales in Mexico and the US

Consolidated net sales increased 9% in fourth quarter of 2020 to US$3.5bn and increased 1% for the full year 2020 to US$13bn versus the comparable periods in 2019. The 9% net sales increase represented CEMEX's highest reported sales in a fourth quarter since 2014.

Operating EBITDA (earnings before interest, taxes, depreciation and amortisation) increased 19% during the fourth quarter of 2020 to US$644m and increased by 7% for the full year to US$2.46bn. The company attributed the pickup in EBITDA in Q4 to significant momentum in cement volumes and cost savings under “Operation Resilience”.

Free cash flow after maintenance capital expenditures reached US$575m, a 9% growth versus the same quarter of 2019. Controlling interest net income was US$70m in Q4 2020 versus a loss of US$238m in the same quarter of 2019.

Despite COVID-19 disruptions during the year, CEMEX says it continued to make progress on its deleveraging goal. Excluding the foreign exchange effect, net debt plus perpetuals declined by US$1,027m in 2020, while the leverage ratio declined by one tenth of a turn.
     
CEMEX CEO Fernando González commented: “2020 was one of the most challenging years we have faced but it also was a remarkable year that tested the strengths of CEMEX and several of our recent strategic initiatives. I am proud of our performance, the organisation, and how we responded to the sudden arrival of COVID-19 in 2020."

Net sales in Mexico increased 23% to US$836m. Operating EBITDA, increased 26% to US$268m in the quarter, versus the same period of the previous year.

CEMEX’s operations in the United States reported net sales of US$1.0bn, an increase of 8% from the same period in 2019. Operating EBITDA increased by 25% to US$186m versus the same quarter of 2019. For the full year, the US business generated US$747m in EBITDA, the highest reported annual amount since 2007.

In the Europe, Middle East, Africa and Asia region, net sales increased by 6%, compared with the same period of the previous year, reaching US$1.2bn. Operating EBITDA was US$159m for the quarter, 5% higher than the same period last year.

CEMEX’s operations in the South, Central America and the Caribbean region, reported net sales of US$410m, an increase of 6% over the same period of 2019. Operating EBITDA increased by 11% to US$106m in the fourth quarter of 2020, in contrast to the same quarter of 2019.

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