Displaying items by tag: Cemex
Dominican Republic: Cemex has launched operations at a 1.5MW solar energy complex in the Dominican Republic in line with its commitment to sustainability. The facility will supply 2.2MkWhr/yr of energy to Cemex's cement plant in San Pedro de Macoris. It features 5040 panels with high-tech inverters. It is the first solar power plant owned by Cemex in the Caribbean. The company aims to continue to invest in sustainable energy solutions, such as marine and wind power.
Mexico: 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.
Spain: The European Commission has cleared the acquisition of the Spanish operations of the Swiss building materials group Holcim by its Mexican peer Cemex following an in-depth investigation.
Mexico: 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.
Colombia: The president of Cemex Colombia, Carlos Jacks, has provided details of the US$340m plant the company plans to build in Maceo, Antioquia Department. The plant will be the first that Cemex constructs entirely from scratch outside of Mexico; in the past it has simply expanded existing plants abroad. The plant will increase Cemex's Colombian production capacity from 4.50Mt/yr to 5.50Mt/yr.
The plant will be able to use 50% of alternative fuels, either biomass or tyre residue, although initially the plant will use coal. Maceo has been chosen due to its central location in reference to the Prosperidad roads, which will connect it well with the rest of the country.
The plant has great potential due to the 4G road projects, which require US$26bn of investments from 2016. As cement makes up 10% of the investment costs, this means US$520m will be spent on 2Mt of cement each year. When combined with Colombia's established cement market, demand in the country will reach around 14Mt/yr.
US: Cemex USA is pleased to announce that six of its cement plants have earned the US Environmental Protection Agency (EPA) Energy Star certification. The recognition of Cemex USA's plants in Brooksville (Florida), Miami (Florida), Clinchfield (Georgia), Fairborn (Ohio), Louisville (Kentucky) and Victorville (California), demonstrates that these plants perform among the top 25% of similar US plants for energy conservation.
2014 marks the eighth consecutive year of certification for the Clinchfield plant, an achievement realised by only one other cement plant in the US. It is also the fourth consecutive certification for the Miami plant, the third for Brooksville, Victorville and Fairborn plants and the sixth year for the Louisville plant.
Throughout the year, all of the recognised plants put into practice the energy-efficiency principles established by the Energy Star guidelines for energy management that were developed by the EPA. These plants implemented energy conservation and monitoring technologies, promoted energy-efficiency awareness among employees and completed energy-reduction projects.
"Cemex is committed to sustainable practices throughout our operations, including energy-efficiency," said Karl Watson Jr., president of Cemex USA. "We are honoured to again be recognised by the EPA and Energy Star for our commitment to sustainable practices."
Colombia: Cemex has announced that it will begin construction of a US$340m cement plant in Colombia. The first phase of the project includes construction of a new grinding mill that will begin to produce cement in the second quarter of 2015. The rest of the plant will be completed in the second half of 2016.
"We are proud to contribute to the development of Colombia and wish to continue to be a long-term partner on its path to a prosperous, sustainable future," said Cemex's CEO, Fernando Gonzalez. The investment by Cemex Latam Holdings is expected to boost production capacity in Colombia from 4.5Mt/yr to nearly 5.5Mt/yr.
The plant will be built in the north-western Colombian province of Antioquia, a region with high economic-growth levels. It is expected to create 1000 direct jobs in the construction phase and around 300 jobs once operations begin.
Latin America: Cemex Latam Holdings, Cemex's Latin American subsidiary, has reported net consolidated sales of US$864m during the first half of 2014, representing a year-on-year rise of 6%. Company earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell year-on-year by 8% during the first six months of 2014, reaching US$283m, due to scheduled maintenance works. EBITDA levels are expected to improve during the second half of 2014. Cemex Latam Holdings recorded net profits of US$121.2m in January - June 2014, 14% down on the same period in 2013.
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.
Spain: The European Commission (EC) has objected to Cemex's plan to acquire Holcim's Spanish units, according to Reuters.
Cemex and Holcim unveiled the deal in August 2013, part of which included Holcim taking over Cemex's German businesses. The EC cleared this deal unconditionally earlier in July 2014. However, the Spanish part of the deal triggered an in-depth probe by the EC in April 2014. The preliminary review showed that the takeover would substantially curb competition in the grey cement market in certain parts of Spain.
"The EC has sent a statement of objections to the companies," said an EC spokesperson.
"We cannot comment and the process is following its normal course," said Cemex. "Proper disclosure will be made when we have to make it." Cemex had offered some concessions during the EC's preliminary review, but these were not considered to be sufficient. The EC has set a 5 September 2014 deadline for its decision.