Displaying items by tag: Mexico
Cemex completes refinancing of bank debt
04 August 2015Mexico: Cemex has completed the refinancing of a bank loan agreement, paying off the remnants of what was originally a US$15bn debt refinancing at the height of the 2009 global crisis, according to Dow Jones.
Cemex said that it paid ahead of time the remaining US$1.94bn of a 2012 accord, using funds from 17 financial institutions that joined others in a refinancing deal reached about a year ago. The amount owed under the new credit agreement now stands at around US$3.79bn, including Euro620m (US$681m) and the rest in US Dollars.
"We have now consolidated our syndicated bank debt in a single agreement under improved conditions that better reflect our financial metrics. We are pleased with the interest shown by the bank market in this transaction and the continued support of our lenders," said CFO José Antonio González. With the latest refinancing, Cemex's only significant debt payments in the next two years are US$352m in convertible notes due in March 2016 and a US$373m principal payment in September 2017 on the existing bank loan agreement.
Cemex refinanced around US$15bn in bank debt during the 2009 global crisis, when the company's earnings fell and put payment of its heavy debt load at risk. In 2012, with about half of the amount left to pay, Cemex rescheduled around US$6bn and has since carried out further refinancings to lower the cost and extend the maturity of its debt. Cemex's total debt at the end of June 2015 stood at US$15.9bn, down from US$17.1bn a year earlier.
Grupo Cementos Chihuahua secures US$194m loan
29 July 2015Mexico: Grupo Cementos Chihuahua has secured a five-year loan of US$194m to refinance debt, according to Esmerk Latin American News. The company is rolling over a syndicated loan due to expire in 2018.
Cemex reports sales growth in 2015
23 July 2015Mexico: Cemex's consolidated net sales in the second quarter of 2015 grew by 5% year-on-year on a like-for-like basis for ongoing operations and adjusting for currency fluctuations to US$3.8bn. Its operating earnings before income, taxes, depreciation and amortisation (EBITDA) increased by 1% during the quarter to US$744m. On a like-for-like basis, operating EBITDA increased by 13%.
The increase in consolidated net sales on a like-for-like basis was due to higher product prices in local currency terms in most of its operations, as well as improved volumes in most of its products in Mexico, the US, and the northern Europe and Asia regions.
Cemex's net sales in Mexico decreased by 9% in the second quarter of 2015 to US$745m while its operating EBITDA increased by 4% to US$256m. In the US, its net sales grew by 5% year-on-year to US$1.01bn and its operating EBITDA increased by 31% to US$156m. In northern Europe, net sales for the second quarter of 2015 fell by 21% to US$904m and its operating EBITDA fell by 8% year-on-year to US$111m. In the Mediterranean region its net sales fell by 9% to US$409m as its Operating EBITDA fell by 25% to US$75m. Cemex's net sales from operations in South, Central America and the Caribbean fell by 8% year-on-year to US$517m and its operating EBITDA fell by 10% to US$160m. In Asia, net sales grew by 11% year-on-year to US$177m and operating EBITDA was up by 34% year-on-year to US$45m.
"We are pleased with our results. Our controlling interest net income during the quarter was the highest in six years. In addition, our operating EBITDA grew by 13% on a like-fir-like basis. This is the third quarter with double-digit, like-for-like growth in EBITDA," said Fernando A Gonzalez, Cemex CEO.
Mexico: Cementos Moctezuma, a joint venture company of Cementos Molins, Buzzi Unicem and Grupo Carso, has ordered a Loesche vertical roller mill LM 53.3+3 C for its cement plant in Apazapan, Veracruz. The mill will produce 205t/hr CPC 30 cement at 4000 Blaine or 195t/hr CPC 40 cement at 3700 Blaine.
The order also includes a LDC classifier (Loesche Dynamic Classifier), as well as the COPE gearbox, including gearbox drive motors, developed in cooperation with RENK AG. The COPE gearbox features a redundancy of eight motors. With all eight motors in operation, an output totaling 4.6MW is achieved. The customer advantage lies in the fact that the COPE gearbox can reach up to 100% of the mill capacity performance even with a reduced number of motors. The COPE gearbox has the same external dimensions as a conventional planetary gear system and thus requires no extensive enlargement of the mill foundations.
Mexico: Cemex has presented the results of its sustainable development report from 2014, stressing that it has responded to growing challenges in urban development, while highlighting the need for investments in long-lasting infrastructure, energy-efficient buildings and accessible housing.
Cemex's achievements include 600 infrastructure projects, amounting to more than 8Mm2 of concrete for motorways, runways and streets in 14 countries, while it contributed towards the construction of 3150 affordable homes, covering more than 180,000m2 in 12 nations. Since 1998, Cemex social programmes, including Patrimonio Hoy, ConstruApoyo and Centros Productivos de Autoempleo, have benefited more than 7m people, including 550,000 families. In 2014, Cemex substituted about 28% of its fuels for alternative fuels. Cemex also avoided the emission of more than 8Mt of CO2 and lowered worker accident rates by 33%, as well as contract worker accidents by 23%, during 2014.
Cemex reports higher prices and volumes in 2015
05 May 2015Mexico: Cemex has announced that in the first quarter of 2015, which ended on 31 March 2015, it achieved higher prices in local currency terms in most operations, as well as higher volumes in Mexico, the US and Asia.
Cemex's consolidated net sales reached US$3.4bn during the first quarter of 2015, an increase of 7% year-on-year on a like-for-like basis for ongoing operations and adjusting for currency fluctuations. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 6% year-on-year to US$569m. On a like-for-like basis, operating EBITDA increased by 14% in the same period. On a like-for-like basis, operating earnings before other expenses, net, in the first quarter increased by 33% to US$335m.
Cemex has reported a narrower controlling interest net loss of US$149m during the first quarter of 2015 from a loss of US$293m in the same period of 2014. Its controlling interest net income was a loss of US$149m, an improvement over a loss of US$293m in the same period of 2014.
"We are pleased with our first-quarter results," said Fernando A Gonzalez, CEO of Cemex. "Our net sales increased by 7% year-on-year, while operating EBITDA improved by 14% on a like-for-like basis. EBITDA generation was the highest since 2008, despite adverse currency fluctuations. We are encouraged by the performance of our operations in Mexico, where first-quarter cement volumes grew by 13%, reaching the highest level in six years. This quarter, on top of the sustained increase in our volumes to the industrial, commercial and formal residential sectors, we also saw growth in the infrastructure and informal residential sectors. Cement demand from the infrastructure sector grew by 6%, marking an inflection point driven by increased public-works spending, while demand from the informal residential sector grew by 11% as a result of higher consumer confidence due to improvements in employment, disposable income and remittances."
Net sales in Mexico increased by 4% in the first quarter of 2015 to US$766m, compared with US$737m in the first quarter of 2014. Operating EBITDA increased by 4% to US$262m.
Cemex's operations in the US reported net sales of US$868m in the first quarter of 2015, up by 10% from the same period in 2014. Operating EBITDA increased to US$64m in the quarter compared to US$28m in the same quarter of 2014.
In Northern Europe, Cemex's net sales for the first quarter decreased by 23% to US$701m, compared with US$912m in the first quarter of 2014. Operating EBITDA was US$36m compared to US$13m in 2014. On a like-for-like basis for the ongoing operations and adjusting for currency fluctuations, net sales remained flat and operating EBITDA increased 80% year-on-year.
First quarter net sales in the Mediterranean region were US$375m, 9% lower than the US$412m in the first quarter of 2014. Operating EBITDA decreased by 11% to US$73m for the quarter. On a like-for-like basis, for the ongoing operations and adjusting for currency fluctuations, net sales increased by 2% and operating EBITDA decreased by 3%.
Cemex's operations in South, Central America and the Caribbean reported net sales of US$468m during the first quarter of 2015, representing a 13% decrease over the same period of 2014. Operating EBITDA decreased by 21% to US$148m in the first quarter of 2015, from US$187m in the first quarter of 2014.
Operations in Asia reported a 13% increase in net sales for the first quarter of 2015 to US$164m and operating EBITDA rose by 43% year-on-year to US$37m.
Mexico: Grupo Cementos de Chihuahua (GCC) expects its sales growth to decline in 2015 after record revenues in 2014 as low oil prices constrict demand in the US, the company's top market. GCC treasurer Luis Carlos Arias said that after a nearly 20% sales spike in 2014, the company expects only single digit growth in the US in 2015, which accounts for about 70% of total sales. Demand in Mexico is expected to fall slightly.
Mexico: Holcim has announced plans to reduce its water consumption by 14% year-on-year in 2015 in Mexico. It has invested US$332,167 in the initiative and has installed meters at all of its cement plants. The installation was carried out to reduce the business's operational water footprint.
Cement market to grow between 3% and 5% in 2015
13 March 2015Mexico: Mexico's cement market could grow by 3 - 5% in 2015, driven by dynamism in the housing sector, an increase in the amount of cash remittances migrants send home and the government's national infrastructure programme, according to Holcim. Growth could, however, be limited by low crude oil revenues, federal government budget cuts and the US Dollar exchange rate volatility. Nevertheless, 2015 is likely to be much better than 2014 as far as cement sales are concerned.
The local construction industry continued to recover in the first two months of 2015 as it did after the second half of 2014. Cement sales for infrastructure projects might be driven by growth in three sectors, namely road, airport and port construction, energy construction and water pipeline and dam construction. Infrastructure projects account for 30 - 40% of cement consumption in Mexico. Housing construction accounts for 40% of all sales. An increase in the arrival of cash remittances is expected to trigger more sales of cement for housing projects. Commercial and industrial construction projects consume 20% of all sales and this segment has performed very well in recent months.
Cemex to develop gas power plants in Mexico
03 March 2015Mexico: Cemex plans to build new power plants in Mexico using natural gas, according to Cemex Energia chief executive Luis Farias. "We are looking to develop a 300MW gas project in the north of the country, near the border with the US," said Farias. Cemex is also looking at a portfolio of three to five 70MW plants, complementing existing installations at its cement plants where it already has access to gas.