CEMEX Expects Net Debt Reduction of US$400 Million and Achieving Its Leverage Ratio Target Ahead of Schedule.Business Editors MONTERREY, Mexico--(BUSINESS WIRE)--May 31, 2001 CEMEX CEMEX Cementos Mexicanos , S.A. de C.V. (NYSE NYSE See: New York Stock Exchange : CX), announced today that it expects to reduce net debt by over US$400 million during the quarter ending June 30, 2001, which will allow it to achieve its targeted Net Debt/EBITDA ratio of 2.7 times ahead of schedule. The expected reduction in net debt will happen as a result of the increase in cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has realized from the previously announced BANACCI transaction, as well as higher than expected free cash flow generation (operating and non operating) during the second quarter. The stronger than expected free cash flow is also as a result of the anticipated close to full participation by CEMEX shareholders in the stock dividend option. Rodrigo Trevino, Chief Financial Officer, said: "We are pleased that we will reach our desired capital structure targets sooner than expected. A combination of better than expected performance in our US market, a strong Mexican Peso, and the achievement of cost saving efforts worldwide, give us confidence that our consolidated performance will be in line with our targets of approximately US$610 million and US$2.5 billion in consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the second quarter and full year respectively. This would be accomplished in spite of weaker volumes in Mexico in the second quarter compared to last year. The lower Mexican Peso interest rate environment and the positive outlook for foreign direct investment into Mexico should lead to better market conditions during the second half of 2001 and beyond." CEMEX is one of the three largest cement companies in the world, with approximately 78 million metric tons of production capacity. It is also the world's largest trader of cement and it is the leading producer of white cement. CEMEX is engaged in the production, distribution, marketing, and sale of cement, ready-mix concrete Ready-mix concrete is a type of concrete that is manufactured in a factory according to a set recipe, and then delivered to a worksite, often by truck. This results in a precise mixture, allowing specialty concrete mixtures to be developed and implemented on construction sites. , aggregates, and clinker clink·er n. 1. The incombustible residue, fused into an irregular lump, that remains after the combustion of coal. 2. A partially vitrified brick or a mass of bricks fused together. 3. through operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. on four continents. For more information, visit www.cemex.com. |
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