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CEMEX, S.A. ANNOUNCES FIRST QUARTER 1992 RESULTS

 CEMEX, S.A. ANNOUNCES FIRST QUARTER 1992 RESULTS
 MONTERREY, Mexico, April 9 /PRNewswire/ -- Cemex's results for the


first quarter of 1992 showed significant improvement. In nominal dollars, sales increased by 21 percent, operating profit by 31 percent and net income by 47 percent, compared to the same quarter of the previous year.
 The national demand for cement during the first quarter of 1992 was 5.7 million tons, an increase of 6 percent over the same period of 1991, in spite of unusually heavy rainfalls in January and at the beginning of February, which decreased construction activity throughout Mexico.
 Cemex's domestic sales of cement increased by 8 percent in volume and those of ready-mixed concrete by 20 percent, slightly increasing market share.
 The country's demand for cement increased notably during the second half of February and during March, which leads us to believe that demand for cement will be 11 percent higher in 1992 over 1991.
 Cement exports by Cemex were 307 million tons of cement over this past three months, which is an increase over the previous year. Forty- one percent of this total was exported to the Far East and Caribbean countries where prices are higher than in the United States; Cemex's traditional market.
 Net sales prices in U.S. dollars on the domestic market increased by 4 percent compared with those of the last quarter of the previous year, reflecting increasing price deregulation and the support of an increased demand.
 In ready-mixed concrete, the strategy begun in 1991 to cut costs and streamline operations is giving excellent results; there was not only an increase in volume sold, but also in the operating margin, which increased by four points on sales.
 The group's consolidated net sales were $436 million, 21 percent higher than those of the same period of the previous year, and 7 percent above those of the fourth quarter of 1991. This reflects the effect of greater volume and higher prices.
 This quarter's operating profits were $118 million, a 31 percent increase over the same period of 1991. This significant increase is the result not only of the process of cement price deregulation in Mexico and the increase in sales, but also of the modernization of the company and its cost reduction. As part of Cemex's long term cost reduction program, personnel was reduced by 318 people during this quarter, while, at the same time, the company's operations were increased.
 Production costs remained stable since the modernization process and the operation of new plants compensated for the increase in energy prices. In the future, the cost-reduction strategy, together with the addition of new capacity with lower costs, will bring about a reduction in the average cost of production.
 The operating margin during this quarter was 27 percent on sales, an increase of over 25 percent compared with the first quarter of 1991 and over 21 percent compared with the last quarter of 1991. A significant improvement in operating margin for the rest of the year is foreseeable due to an increase in cement sales prices, a better use of the installed capacity, an improvement in production efficiency and a greater participation in the ready-mixed concrete sector. Also, a program for the reduction of administrative expenses is being developed.
 Net profits for this period were $103 million, a 47 percent increase over the same period in 1991. The increase in profits was mainly the result of higher operating margins and lower financial expenses.
 In the future, net profits will not only reflect the effect of higher operating margins, but also the improvement in the total cost of financing due to a more solid financial structure, resulting from the equity placement on the international markets.
 Cemex has started its investment program for 1992-1994. This program contemplates a total investment of $1 billion in order to increase the cement production capacity of the group by 37 percent, that is 8.8 million tons; to double the ready-mixed concrete production capacity; and to invest approximately $100 million in pollution control equipment.
 Important factors of this program are the 2 million ton increase in the capacity of the Huichapan Plant and the construction of a new plant with a production capacity of 3.0 million tons in the state of Puebla; the original capacity of this plant was 2.4 million tons, but with a small incremental cost, a 25 percent capacity increase will be achieved. The increase in the group's production capacity in central Mexico will give it a greater share in this region's market particularly in the rapidly-growing medium sized cities near Mexico City. At March 31, the investment in Huichapan was $27 million and in the Puebla plant $9 million.
 During the first quarter of 1992 two strategic purchases were made totalling $116 million. The group acquired a concrete plant and its subsidiaries in California. This has given the group a stronger presence in this region and has allowed it to integrate its operations even further. Two shipping terminals were also acquired, and a distribution company in Spain, giving the group the opportunity to participate in this rapidly growing, high-price area in Europe.
 The general shareholders meeting was held on March 16, 1991, in which a cash dividend of 600 pesos per share was declared, representing 15 percent of the prior year's earnings. The total amount paid was $64 million.
 During this period over $600 million equity was placed on international markets, Thirty-three million CPO's (ordinary share certificates) were placed, representing Cemex Series A, subseries A-1 shares trading in the Mexican Stock Exchange.
 Part of the resources obtained from this placement will be used to reduce the company's debt, particularly those bearing higher interest, which will significantly improve the company's financial structure, reducing leverage (debt/stockholders equity) from 0.76 to 0.47. The remaining funds will be used to finance part of the recently announced expansion program.
 The size of this placement confirms foreign investors confidence in the company's positioning.
 Cemex is now in an excellent strategic position to continue benefiting from Mexico's growth. Cemex is an efficient cement producer that uses advanced technology, and has a solid financial structure. Since it is the absolute leader in the Mexican market, Cement is in an excellent position to take advantage of business opportunities in other countries, particularly in areas with high growth potential.
 CEMEX, S.A. AND SUBSIDIARIES
 (Millions of Dollars)
 1st quarter 4th quarter Percent
 1992(B) 1991(C) Change
 Net sales $436.2 $408.8 6.7
 Cost of sales 264.4 262.3 0.8
 Gross profit 171.8 146.5 17.3
 Selling, gen. & admin. exps. 54.1 62.4 (13.3)
 Operating income 117.7 84.1 40.1
 Total comprehensive financing
 (cost) income (12.8) (12.4) 3.4
 Other financial items gain (loss)16.4 13.0 25.9
 Net income bef. equity in net
 inc. of unconsolidated subsidiaries
 and extraordinary items 118.3 98.9 19.6
 Consolidated net income 119.1 111.3 7.0
 Net income attributable to
 minority interest 16.2 22.3 (27.5)
 Net inc. after minority interest 102.9 89.0 15.6
 Percent
 First quarter 1992(B) 1991(A) Change
 Net sales $436.2 $359.1 21.5
 Cost of sales 264.4 225.8 17.1
 Gross profit 171.8 133.4 28.8
 Selling, gen. & admin. exps. 54.1 43.6 24.2
 Operating income 117.7 89.8 31.1
 Total comprehensive financing
 (cost) income (12.8) (14.0) 8.5
 Other financial items gain (loss)16.4 24.2 (32.3)
 Net income bef. equity in net
 inc. of unconsolidated subsidiaries
 and extraordinary items 118.3 79.7 48.5
 Consolidated net income 119.1 80.1 48.6
 Net income attributable to
 minority interest 16.2 10.1 60.6
 Net inc. after minority interest 102.9 70.1 46.9
 1st quarter
 Balance Sheet 1992 (B) 1991 (A)
 Total assets 4,073.6 3,560.0
 Current assets 703.0 584.9
 Fixed assets 2,716.3 2,401.6
 Other assets 654.4 573.6
 Total liabilities 1,763.9 1,567.5
 Current liabilities 456.7 532.5
 Long-term liabilities 1,297.9 1,027.9
 Other liabilities 9.3 7.1
 Consolidated stockholders' equity 2,309.7 1,992.6
 Stockholders' equity attributable to
 minority interest 432.5 488.5
 Stockholders' equity attributable to
 majority interest 1,877.2 1,504.1
 1st Quarter
 Financial Indicators 1992 (B) 1991 (A)
 Earnings per share (D) 0.31 0.21
 Operating margin 27.0pct 25.0pct
 Leverage (total debt/total capitalization)39.7pct 44.4pct
 Current ratio (current asset/current
 liabilities) 1.54 1.10
 Dividends per share (E) 0.00 0.00
 (A) Constant pesos as of March 31, 1991, converted to dollars at controlled exchange rate of 1 US $ equals $2.985.4.
 (B) Constant pesos as of March 31, 1992, converted to dollars at controlled exchange rate of 1 US $ equals $3,098.0.
 (C) Constant pesos as of Dec. 31, 1991, converted to dollars at controlled exchange rate of 1 US $ equals $3,086.0.
 (D) Base 330,000,000 shares and majority interest net income.
 (E) Paid annually during the second quarter ($US dollars).
 -0- 4/9/92
 /CONTACT: Humberto Moreira (financial), 011-52-45-2000, ext. 1480, or Luis Martinez (media) 011-52-83-45-2000, ext.1051, both of CEMEX, or Kay Breakstone of Burson Marsteller, 212-614-4449, for CEMEX/ CO: Cemex, S.A. ST: IN: CST SU: ERN


KD-AH -- NY092 -- 7021 04/09/92 19:06 EDT
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