The building materials giant says the decrease in quarterly consolidated net sales was due to lower volumes in all of its regions except for the US, partially offset by higher local currency prices for CEMEX products in all of its regions.
CEMEX CEO Fernando Gonzalez commented: “The second quarter was impacted by the challenging global economic environment. Weaker-than-expected industrial activity and continued trade conflicts have resulted in lower investment in several of our markets.
"Mexico in particular has been affected by these factors which led to lower-than-expected volumes. Adverse weather in the United States also translated into muted activity during the quarter. In contrast, we are very pleased with the favourable performance of our Europe region."
Operating EBITDA decreased by 14% on a like-to-like basis during Q2 2019 to US$644m on a year-on-year basis.
Operating earnings before other expenses, net, decreased by 24% to US$377m on a like-for-like basis in the second quarter.
Controlling interest net income during the quarter was US$155m, down from US$376m in the same period of 2018.
Operating EBITDA decreased by 14%, on a like-to-like basis, during the quarter on a year-on-year basis to US$644m. Operating EBITDA margin during the quarter decreased to 18.3% from 20.6% in the same period in the previous year.
Free cash flow after maintenance capital expenditures for the quarter was US$217m.
Gonzalez said that CEMEX would continue with its focus on pricing strategies and operating efficiencies in order to grow the company's EBITDA and expand its EBITDA margin.
"We anticipate our EBITDA generation to increase during the second half of the year, driven by expected improved government spending in Mexico, better pricing levels in addition to higher cement volumes in the US and Europe, moderation in energy headwinds, as well as higher contribution from our A Stronger CEMEX plan,” he added.
During Q2 2019, controlling interest net income was US$155m, versus US$376m in the same period last year. Net debt plus perpetual notes decreased by US$185m during the quarter.
Net sales in CEMERX's operations in Mexico, on a like-to-like basis, decreased 14% in Q2 2019 to US$752m. Operating EBITDA, on a like-to-like basis, declined by 25% to US$245m in the quarter from Q2 2018.
CEMEX’s operations in the United States reported net sales of US$1,032m in Q2, an increase of 4% from the same period in 2018. Operating EBITDA decreased by 12% to US$184m from US$211m in the same quarter of 2018.
CEMEX’s operations in South, Central America and the Caribbean reported net sales of US$424m during Q2, a like-for-like decrease of 3% on the same period of 2018. Operating EBITDA, on a like-for-like basis, decreased by 14% to US$93m in the second quarter of 2019 from Q2 2018.
In Europe, net sales for Q2 2019 decreased by 2% on a like-for-like basis to US$885m, compared to the second quarter of 2018. Operating EBITDA was US$144m for the quarter, 16% higher than the same period last year on a like-for-like basis.
Operations in Asia, Middle East and Africa reported a 5% decline in like-for-like net sales in Q2 to US$339m, versus the same quarter of 2018. Operating EBITDA for the quarter was US$54m like-for-like, 6% lower than Q2 2018.
