Displaying items by tag: Mexico
Cemex reports sales up 2% globally in 2013
06 February 2014Mexico: Cemex has anounced that its consolidated net sales increased by 4% during the fourth quarter of 2013 to approximately US$3.9bn and increased by 2% for the whole of 2013 to US$15.2bn versus the comparable periods of 2012. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 4% during the fourth quarter of 2013 to US$642m and increased by 1% for the whole of 2013 to US$2.6bn versus 2012.
Cemex said that the increase in consolidated net sales was due to higher volumes in the US and its operations in the Mediterranean, Northern Europe, Asia and South, Central America and the Caribbean, as well as higher product prices in local currency terms in most regions. Operating earnings before other expenses in the fourth quarter increased by 30% to US$359m and increased by 17% to US$1.5bn for the full-year 2013.
Cemex reported a narrower controlling interest net loss of US$255m during the fourth quarter of 2013, down from a loss of US$494m in the same period of 2012. For the full-year 2013, controlling interest net loss improved to US$843m from a loss of US$913m in 2012.
Operating EBITDA during the fourth quarter increased by 4% to US$642m. For the full year 2013, operating EBITDA increased by 1% to US$2.6bn versus 2012. On a like-to-like basis and also adjusting for the pension plan effect, full-year 2013 operating EBITDA increased by 4%.
Fernando A González, Executive Vice President of Finance and Administration, said, "During 2013 we continued to deliver. This is our third consecutive year of EBITDA growth, driven by improvement in pricing and volume in most of our regions, the favorable operating leverage effect in the US and our continued initiatives to improve our operating efficiency."
The fourth quarter of 2013 by region
Net sales in Cemex's operations in Mexico decreased by 6% in the fourth quarter of 2013 to US$785m, compared with US$832m in the fourth quarter of 2012. Operating EBITDA decreased by 17% to US$247m versus the same period of 2012.
Cemex's operations in the US reported net sales of US$819m in the fourth quarter of 2013, up by 8% from the same period in 2012. Operating EBITDA increased to US$77m in the quarter, versus a US$13m profit in the same quarter of 2012.
In northern Europe, net sales for the fourth quarter of 2013 increased by 5% to US$1.1bn, compared with US$1.0bn in the fourth quarter of 2012. Operating EBITDA was US$79m for the fourth quarter, 1% lower than the same period of 2012.
Fourth-quarter net sales in the Mediterranean region were US$394m, 11% higher when compared to sales of US$354m during the fourth quarter of 2012. Operating EBITDA decreased by 5% to US$78m for the quarter versus the comparable period in 2012.
Cemex's operations in South, Central America and the Caribbean reported net sales of US$577m during the fourth quarter of 2013, representing an increase of 11% over the same period of 2012. Operating EBITDA increased by 15% to US$183m in the fourth quarter of 2013, from US$159m in the fourth quarter of 2012.
Operations in Asia reported a 4% decrease in net sales for the fourth quarter of 2013, to US$133m, versus the fourth quarter of 2012. Operating EBITDA for the quarter was US$32m, up by 12% from the same period of 2012.
MINTed cement industries
08 January 2014There was a great quote on BBC News from Nigerian cement mogul Aliko Dangote to start 2014 with: "Can you imagine, can you believe, that [Nigeria] has been growing at 7%/yr with no power, with zero power? It's a joke."
In the article Dangote is describing economic growth in Nigeria and the BBC points out that 170 million people in Nigeria use the same amount of power as 1.5 million people do in the UK. The author then goes on to predict that Nigeria could grow at a rate of 10 – 12%, by just solving power infrastructure in the country.
For the start of 2014 the British state broadcaster has been running a radio series on the so-called MINT economies. The term refers to the growing economies of Mexico, Indonesia, Nigeria and Turkey and is being used as a new buzzword in the same fashion as BRIC (Brazil, Russia, India and China) to describe broadly similar growing economies outside the traditional western bloc dominated by the G7.
Comparing the cement industries in the MINT countries raises some discrepancies between the desires of Western economists and the local cement industries. Mexico has a population of 118m, a Gross Domestic Product (GDP) of US$1.85tr and a cement production capacity of 50Mt/yr. Indonesia has a population of 238m, a GDP of US$1.29tr and a cement production capacity of 47Mt/yr. Nigeria has a population of 175m, a GDP of US$479bn and a cement production capacity of 28Mt/yr. Turkey has a population of 74m, a GDP of US$1.17tr and a cement production capacity of 82Mt/yr.
Mexico and Turkey have the lower populations in the MINT group, the highest (and most similar) Gross Domestic Product (GDP) per capita at US$15,000 and are the more developed cement industries in the group with the higher cement production capacities per capita. All of the MINT countries have infrastructural issues that will require large amounts of cement in the coming years.
Highlighting Dangote's concerns we cover a cement industry news story this week from Nepal, where Dangote is considering potential locations for a cement plant. Part of the publicly reported meeting between Dangote and the Nepalese government concerned power requirements for the project. Dangote intends to generate 30MW itself and has asked Nepal to provide 30MW. From the CEO downwards the cement producer clearly understands the problems of underdeveloped infrastructure. This is not surprising given his comments above!
That MINT economies are growing powers will not surprise the cement industry. In this week's Global Cement Weekly, in addition to the Dangote story, we feature two news stories focusing on direct industry capital investment in Indonesia. Looking more widely nearly half the stories are from BRIC or MINT countries.
With this in mind Global Cement has developed its own buzzword for the cement industry in 2014: the VISA group. This group includes Vietnam, Italy, Spain and Australia, countries that have all had problems with their cement industries in 2013 such as a production overcapacity or financial losses. If readers have any nicknames of their own for groups of cement producing nations let us know at This email address is being protected from spambots. You need JavaScript enabled to view it..
Cemex implements water policy
11 December 2013Mexico: Cemex has implemented a corporate water policy that defines its global strategy for responsible water management across its operations worldwide. The policy, developed in partnership with the International Union for Conservation of Nature (IUCN), aims to develop business activities in a sustainable manner, minimising pressure on water resources and to cover three essential aspects that include resource availability, resource quality and ecosystem integrity.
Cemex's corporate water policy includes the company's compliance with relevant regulations and pledges to maximise water efficiency by managing water consumption and utilising sustainable water sources such as rainwater.
Since forming their partnership in 2010, Cemex and IUCN have standardised water measurement and management to increase water efficiencies in all of the company's operations.
Cemex and Neoris sign US$500m IT deal
11 December 2013Mexico: Cemex has signed a US$500m deal with US-based information technology (IT) consulting and outsourcing firm Neoris to outsource IT services for the next ten years. As part of the agreement, Neoris will provide software engineering, application development and technology deployments for multiple projects, complementing existing services Neoris already provides to Cemex.
Cemex has already integrated its advanced enterprise platform, based on a model by German enterprise software giant SAP which was tailored by Neoris, using mobile interfaces, fluid collaboration schemes and business-oriented social media networking models. Alongside the new agreement with Neoris, Cemex will continue a 10-year strategic partnership it signed with IBM in 2012 for business process, application maintenance and IT outsourcing services.
Cemex initiative wins Corporate Citizen of the Americas award
25 November 2013Mexico: Cemex's Assisted Self-Construction Integrated Programme (Programa Integral de Autoconstrucción Asistada – PIAC) won a 2012/2013 Corporate Citizen of the Americas award in the Citizen Security category in November 2013.
The awards recognise innovative programmes that benefit the community and serve as a model for socially responsible practices. The Citizen Security category focuses on initiatives that promote public-private partnerships in order to create more secure communities. The awards programme is run by the Trust for the Americas with support from the Organisation of American States, the Inter-American Development Bank and AES Corporation.
PIAC provides low-income families with access to an integral housing solution that can enhance their quality of life while developing a social ecosystem. The initiative has helped more than 58,000 families as of 30 September 2013. In addition, 110,000 people have become self-employed and 915,000m2 of construction has been achieved to date.
"We are pleased that PIAC has been recognised as a programme that allows families to improve their quality of life and increase their wealth, while strengthening the social tissue," said Juan Romero, President of Cemex Mexico. "In Cemex, we strive to reinforce our social responsibility commitment by contributing to social development."
Cemex reports sales up by 3% in third quarter of 2013
30 October 2013Mexico: Cemex has reported that its net sales rose by 3% year-on-year to US$4bn during the third quarter of 2013. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 2% year-on-year to US$747. The Mexico-based multinational cement producer attributed the increase to increased prices and higher sales volumes in most regions.
"We continue to be focused on our company-wide efforts to improve our operating efficiencies and the value we generate from our asset base while delivering better value to our customers," said Fernando A González, Executive Vice President of Finance and Administration.
By region, Cemex noted that net sales fell in Mexico by 11% year-on-year to US$776m from US$875m. This was blamed on low government infrastructure spending and bad weather. Sales growth was seen in all other regions, and most notably in the group's Northern Europe and Mediterranean regions that recorded 6% (up to US$1.17bn) and 9% (up to US$375m) growth respectively.
Mexico: Cemex has reported that consolidated net sales reached US$4.0bn during the second quarter of 2013, an increase of 4% compared to the comparable period of 2012.
Operating earnings before interest, tax, depreciation and amortisation (EBITDA) also increased by 4% year-on-year during the quarter to US$730m. Adjusting for the higher number of business days in its operations during the quarter, consolidated net sales improved by 2% and operating EBITDA increased by 2% year-on-year. Operating earnings before other expenses, net, during the second quarter increased by 24% to US$451m. Cemex said that an increase in consolidated net sales was mainly due to higher prices in local currency terms and higher volumes in most of its regions. However, controlling interest net income was a loss of US$152m, an improvement over a loss of US$187m during the same period of 2012.
Fernando A González, executive vice president of finance and administration, said, "We are pleased to report that this is the eighth consecutive quarter with year-over-year improvement in EBITDA. We also saw an increase in our consolidated prices in local-currency terms for cement, ready mix and aggregates during the quarter. On the cost side, our alternative fuel substitution initiatives remain a very high priority. On a consolidated basis, our alternative fuel utilisation reached 28% during the quarter. In addition, we are implementing targeted cost-reduction initiatives in Mexico and northern Europe, which we expect will result in savings of about US$100m during the second half of 2013."
Net sales in Cemex's Mexican operations increased by 2% year-on-year in the second quarter of 2013 to US$847m. Operating EBITDA decreased by 17% to US$250m. In the United States, Cemex reported net sales of US$868m for the quarter, up by 9% year-on-year compared to the 2012 quarter. Operating EBITDA increased to US$80m in the quarter, compared to US$27m in the same quarter of 2012. Cemex's operations in South, Central America and the Caribbean reported net sales of US$561m during the second quarter of 2013, representing an increase of 6% over the same period of 2012. Operating EBITDA increased by 12% to US$211m in the second quarter of 2013, from US$189m in the 2012 quarter.
In Cemex's Northern Europe region, net sales for the second quarter of 2013 decreased by 1% to US$1.09bn, compared with US$1.1bn in the second quarter of 2012. Operating EBITDA was US$108m, 11% down year-on-year. Second-quarter net sales in the Mediterranean region were US$400m, 4% higher compared with the US$384m taken during the second quarter of 2012. Operating EBITDA in this region decreased by 2% to US$94m.
Operations in Asia reported a 14% increase in net sales for the second quarter of 2013 at US$162m. Operating EBITDA for the quarter was US$38m, up by 29% from the same period in 2012.
Cemex launches Cemex Global Solutions
03 July 2013Mexico: Cemex has launched Cemex Global Solutions, a service that the company says 'leverages over a century of industry-leading expertise' to provide customers with the best value proposition in a full range of technical services for the cement, ready-mix concrete and aggregates industries.
Cemex Global Solutions is available around the world, with ongoing projects in several countries. By using the best practices and innovations from the company's Research and Development Centre in Switzerland and extracting value from its expertise as a top cement, ready-mix concrete and aggregates company, Cemex Global Solutions is expected to provide state-of-the-art technological support across the entire building materials manufacturing process, from plant design and conceptualisation to expanding capacity and upgrading equipment. This service reinforces Cemex's commitment to suiting its customers' needs by providing them with reliable and cost-efficient solutions.
"We have an unparalleled team of experts with experience throughout the building materials value chain strengthened by our cutting-edge research and development centre," said Hugo Bolio, Cemex Vice-President of Global Technology and Safety. "From feasibility studies to plant management and optimisation, we believe that by offering integrated solutions, we can provide our customers with more reliable and higher quality services."
Mexico: Grupo Cementos de Chihuahua has reported that it made a net loss of US$8.0m in the three months to 31 March 2013. While representing a loss, the loss was 9.9% lower than in the same period of 2012.
Its revenue was down by 2.7% year-on-year from US$116.5, to US$115.2m, while earnings before interest, tax, depreciation and amortisation took a 36.5% hit, falling from US$16.5m in the first quarter of 2012 to US$11.0m in the first quarter of 2013.
Holcim renames Mexican unit
29 May 2013Mexico: Swiss construction materials company Holcim's subsidiary Holcim Apasco will be renamed Holcim México. Holcim Latinoamérica's CEO Andreas Leu said that the move had been taken in order to "Unify the brand and strengthen its presence as a global leader in the Mexican market."
A slowdown in the Mexican construction industry has caused a 10% decline in cement demand in the country in the first three months of 2013, but the firm expects cement sales to increase by 1-2% in 2013, according to Holcim Mexico's CEO Eduardo Kretschmer.
"Mexico has great potential in the construction sector, as it is an emerging economy with strong macroeconomic fundamentals, a young population that in the coming years will demand more and better housing and infrastructure," said Kretschmer.