Displaying items by tag: Mexico
Cemex to resume Tepeaca cement plant expansion
03 December 2014Mexico: Cemex has announced that it is restarting its expansion of the Tepeaca cement plant in Puebla State. By 2017 its total production capacity will reach 7.6Mt/yr. Total investment is estimated to be approximately US$650m. The additional investment, in order to add 4.4Mt/yr to the current capacity, will be approximately US$200m, since the company had already invested close to US$450m by 2008.
"We are encouraged by our industry's positive outlook in Mexico. With this investment, Cemex reaffirms its confidence in the country's future" said Rogelio Zambrano, chairman of the board of Cemex. The expansion is expected to generate approximately 1500 jobs during the construction phase and about 100 direct and 240 indirect jobs once operation begins.
The announcement was made during a ceremony at the plant with the attendance of Ildefonso Guajardo, Secretary of Economy of Mexico, Rafael Moreno, Governor of Puebla, Amelio Flores, Mayor of Cuautinchan, Rogelio Zambrano, Chairman of the Board of Cemex, Fernando A Gonzalez, CEO of Cemex and Juan Romero, President of Cemex Mexico.
Mexico: Cemex plans to create an energy division to participate in power generation using natural gas and wind power for self-supply and sale to Mexico's state utility company CFE. Cemex wants a stake in up to seven power generation projects similar to the two it currently relies on, according to CEO Fernando González.
The Monterrey-based company announced in September 2014 that it would seek to increase its power generation capacity, without mentioning specific projects. In April 2014, Cemex completed financing of the US$650m 252MW Ventika wind farm in Nuevo León State, in which it holds a 5% stake. The facility is slated for completion in the second quarter of 2016.
Ventika is expected to supply power to beverage bottler Femsa, steel products firm Deacero, Tecnológico de Monterrey University and Cemex, with more off-takers likely to come onboard in the future. AWS Truepower, a New York-based renewables consulting and engineering services firm, will act as independent engineer to support the construction of Ventika, which will comprise two 126MW parks.
González said that Cemex was exploring project possibilities and searching for partners with the requisite plant management knowledge. "We have already developed energy generation projects in Mexico and in other countries under the self-supply model, because cement production demands a lot of power and there is not enough electricity available," he said.
Cemex will not make offer to buy Holcim and Lafarge assets
27 October 2014Mexico: Cemex has announced that it will not make an offer to buy the assets being sold by Holcim and Lafarge in light of their merger. Instead, Cemex plans to focus on organic growth, generating more cash flow and reducing its leverage, according to general manager Fernando A Gonzalez Olivieri. Cemex's aims are to once again reach earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$4.70bn in 2016 or 2017 and to recover its investment grade via leverage reduction.
Cemex reports third quarter 2014 results
24 October 2014Mexico: Cemex has announced that its consolidated net sales reached approximately US$4.1bn during the third quarter of 2014, an increase of 4% on a like-to-like basis for the ongoing operations and adjusting for currency fluctuations, versus the comparable period in 2013. On a like-for-like basis, operating earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 3% during the quarter to US$767m versus the same period in 2013. The increase in consolidated net sales on a like-for-like basis was due to higher volumes in Mexico, the US and the South, Central America and the Caribbean and Asia regions, as well as higher prices of its products in most operations.
Net operating earnings before other expenses in the third quarter increased by 5% to US$491m. Operating EBITDA increased, on a like-for-like basis, by 3% during the quarter to US$767m. Cemex reported a narrower controlling interest net loss of US$106m during the third quarter of 2014, from a loss of US$155m in the same period of 2013.
"We are pleased with the year-to-date trends in our consolidated volumes and prices, despite the more challenging economic conditions during the quarter, especially in Europe," said Fernando A González, CEO. "We continue to see favorable medium-term growth prospects for our regions, especially in the Americas, where we expect most of our mid-term EBITDA growth. We are comfortable with the steps taken so far towards attaining an investment-grade capital structure target both on the financial and operating side."
Net sales in Mexico increased by 4% in the third quarter of 2014 to US$803m compared with US$776m in the third quarter of 2013. Operating EBITDA decreased by 1% to US$245m versus the same period of 2013.
Cemex's operations in the US reported net sales of approximately US$1.0bn in the third quarter of 2014, up by 13% from the same period in 2013. Operating EBITDA increased by 74% to US$136m in the quarter versus US$78m in the same quarter of 2013.
In Northern Europe net sales for the third quarter of 2014 decreased by 3% to approximately US$1.1bn, compared with approximately US$1.2bn in the third quarter of 2013. Operating EBITDA was US$144m for the quarter, 11% lower than the same period of 2013.
Third-quarter net sales in the Mediterranean region were US$400m, 7% higher compared with US$375m during the third quarter of 2013. Operating EBITDA increased by 4% to US$81m for the quarter versus the comparable period in 2013.
Cemex's operations in South, Central America and the Caribbean reported net sales of US$585m during the third quarter of 2014, representing a decrease of 2% over the same period of 2013. Operating EBITDA decreased by 6% to US$199m in the third quarter of 2014, from US$210m in the third quarter of 2013.
Its operations in Asia reported a 9% increase in net sales for the third quarter of 2014 to US$151m, versus the third quarter of 2013 and operating EBITDA for the quarter was US$40m, up by 11% from the same period of 2013.
Argos gets green light to access more cash
08 October 2014Colombia: Directors at Cementos Argos have given the green light for an ordinary bond issuance of up to US$495m to be used as working capital and to swap financial liabilities. The company will have three years to carry out the issuance, although it will most likely do so in the coming months.
Previous issuances by Cementos Argos, such as those carried out in 2012 to raise US$495m, have helped the firm expand in Colombia, Latin America and the United States. Argos revealed in August 2014 that it is considering buying Holcim and Lafarge assets in the region, particularly Mexico and Brazil, and has announced that it will also build a US$450m plant.
Cemex to lower financing costs by up to US$165m with new plan
01 October 2014Mexico: Cemex has announced that it will lower its annual financing costs by up to US$165m following the adoption of a new refinancing plan. The plan will also allow the firm to raise its annual investment limit to US$1bn from US$800m, according to Chief Finance Officer Jose Antonio Gonzalez.
Gonzalez also said that Cemex will continue looking to refinance debt that expires in 2015 and it expects that conversion of 2016 bonds to shares will further lower its debt. The company also announced that it had signed a new credit agreement with nine banks worth US$1.35bn, the proceeds of which will be used to refinance debt.
Elementia plans IPO
23 September 2014Mexico: Elementia plans to launch an initial public offering (IPO), according to a filing with the Mexican stock exchange. The size of the issue is yet to be determined.
Lafarge to sell 53% Mexican joint venture stake to Elementia
22 September 2014Mexico: Lafarge has announced plans to sell its 47% stake in its Mexican cement business to Mexico's Elementia SA de CV for US$225m in cash. Lafarge and Elementia operate three cement plants in Mexico, with the former owning 53% of their joint venture. The transaction is pending regulatory clearance and has to fulfil a number of customary closing conditions. Lafarge said that the proceeds from the sale would be used to reduce the company's net debt.
Cemex negotiating refinancing deal
04 September 2014Mexico: Cemex has announced that it is negotiating with a number of banks in order to refinance part of its outstanding bank debt as it seeks to further lower financial costs and extend its debt maturity.
In a regulatory filing ahead of a possible private bond placement, Cemex said it is in advanced talks with a group of banks aimed at reaching a new agreement by the end of October 2014. Proceeds would be used to refinance part of an existing financing agreement with banks.
Cemex refinanced around US$15bn in bank debt during the 2009 global crisis and in 2012, with around half of the amount left to pay, agreed to reschedule some US$6bn in 2014 principal payments to 2017. Cemex has since lowered that further and owes around US$4.3bn under the agreement, which is due in 2017.
Cemex said the current talks with banks are part of its strategy to improve its financial flexibility and lower its overall debt costs. Company officials said recently that Cemex's main priority is to recover the investment-grade ratings that it lost during the 2009 crisis.
Mexico: Cemex has announced its financial results for the second quarter of 2014, which show that consolidated net sales reached US$4.2bn during the second quarter of 2014, an increase of 4% compared to the comparable period in 2013. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 1% during the quarter to US$737m compared to the same period in 2013. On a like-for-like basis and adjusting for business days in its operations during the quarter, consolidated net sales increased by 5% and operating EBITDA increased by 3% versus the second quarter of 2013.
Cemex said that the increase in consolidated net sales was due to higher prices of its products in local currency terms in most of its operations, as well as higher volumes in the US and the Mediterranean, South & Central America and the Caribbean and Asia regions.
Fernando A González, Chief Executive Officer, said, "We are pleased with the year-to-date trends we have seen in volumes for our three core products and the continued success of our value-before-volume strategy. We expect improved performance from our Mexican operations during the second half of the year which should lead to stronger overall EBITDA generation for the full year 2014."
Breakdown by geographical area
Net sales in Cemex's operations in Mexico decreased by 4% in the second quarter of 2014 to US$816m, compared with US$847m in the second quarter of 2013. Operating EBITDA decreased by 1% to US$247m versus the same period of 2013.
Operations in the United States reported net sales of US$957m in the second quarter of 2014, up by 10% compared to the same period in 2013. Operating EBITDA increased to US$119m for the quarter, compared to US$80m in the same quarter of 2013.
In northern Europe, net sales for the second quarter of 2014 reached US$1.1bn, a 5% increase compared with the second quarter of 2013. Operating EBITDA was US$121m for the quarter, 12% higher than a year earlier.
Second-quarter net sales in the Mediterranean region were US$449m, 12% higher than sales of US$400m during the second quarter of 2013. Operating EBITDA increased by 6% to US$100m for the quarter versus the comparable period in 2013.
Cemex's operations in South & Central America and the Caribbean reported net sales of US$562m during the second quarter of 2014, remaining flat compared to the same period of 2013. Operating EBITDA was down by 16% to US$178m in the second quarter of 2014, from US$211m in the second quarter of 2013.
Operations in Asia reported a 2% decrease in net sales for the second quarter of 2014 to US$160m, versus the second quarter of 2013. Operating EBITDA for the quarter was US$34m, down by 11% compared to the same period of 2013.