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CEMEX, S.A. REPORTS INCREASED NINE MONTH AND THIRD QUARTER SALES AND INCOME

 CEMEX, S.A. REPORTS INCREASED NINE MONTH AND THIRD QUARTER
 SALES AND INCOME
 MONTERREY, Mexico, Oct. 29 /PRNewswire/ -- Cemex, S.A. (OTC: CMXBY), announced today that nine month net income increased 19 percent to US$399.2 million (A), in nominal dollars, from US$335.8 million. Net income per share rose 25 percent to US$1.28 during the nine months, versus US$1.02 in 1991.
 If extraordinary gains in the first nine months of 1991 are excluded from net income, nine month 1992 net income would be 57 percent higher than 1991. Excluding the extraordinary gains in the first nine months of 1991 from net income per share, nine month 1992 net income per share would have risen 65 percent.
 Operating income also rose, from US$319.8 million to US$392.5 million, an increase of 23 percent.
 Consolidated net sales of US$1,486.6 million were 20 percent above last year's sales of US$1,233.9 million. Total cement exports were 990,000 tonnes, a decrease of 4 percent over the same period last year. Thirty percent of these exports were to Pacific Rim countries and the Caribbean, where markets are more attractive than the United States, Cemex's traditional market.
 The year-to-date operating margin improved to 26 percent of sales.
 Lorenzo H. Zambrano, chief executive officer of Cemex, said: "Despite the moderate economic slowdown in Mexico during the first nine months of 1992, we have continued our profitable growth trend. This is a consequence of our increased size and ready-mix sales in addition to the results of our continuous modernization, improvement in production efficiency, higher capacity utilization, and cost reduction program.
 "Additionally, as a result of the financial restructuring of the company, reduced bank debt, and lower interest rates, net financial costs were 49 percent and 70 percent lower in the first nine months and third quarter of 1992, respectively, compared to last year.
 "Sales continued to increase as a result of increased volume, higher prices and growing ready-mix sales.
 "We believe Cemex is in an excellent strategic position to capitalize on Mexico's expected growth as well as to take advantage of rising business opportunities."
 The cement market continues to grow, with a rebound which began during the last month of the third quarter. This indicates that the cement sector, which is highly correlated to economic activity, is beginning to overcome its period of slow growth. However, the cement market's growth has been uneven in the different regions of Mexico and lower in those regions where Cemex has a greater market share.
 Ready-mix demand was 37 percent higher during the third quarter as a consequence of the modernization process under way in Mexico, a lack of labor in some regions, and increased infrastructure investment. In addition, Cemex increased its operating margin for ready-mix by seven percentage points during the quarter.
 Energy costs increased in the third quarter. This increase will be more than offset by the mid-October cement price increases which averaged 7 percent.
 Cemex recently announced a contract to supply 800,000 tonnes of cement for the construction of the Huites dam in the state of Sinaloa. This will represent an addition of approximately 3 percent to Cemex's 1993 estimated sales volume growth. The cement for this project will be produced at the Yaqui plant, one of the most efficient and low cost production facilities in the world.
 Cemex completed its acquisitions of the Spanish companies Compania Valenciana de Cementos Portland, S.A. and La Auxiliar de la Construccion (Sanson) during the third quarter. The company is in the process of combining these two companies with work teams including executives from Cemex, Valenciana and Sanson. As a result of the work teams' initial efforts, Cemex has already identified savings of over US$20 million per year.
 Third Quarter Results
 Third quarter net income rose 3 percent to US$132.7 million from US$129.2 million during the same period last year. Net income per share rose 8 percent to US$0.42 in the third quarter, versus US$0.39 in 1991.
 If extraordinary gains in the third quarter of 1991 are excluded from net income, third quarter 1992 net income would be 60 percent higher than 1991. Excluding the extraordinary gains in third quarter 1991 from net income per share, third quarter 1992 net income per share would have risen 69 percent.
 Operating income in the third quarter rose 24 percent to US$128.6 million from US$103.9 million.
 Consolidated net sales increased 24 percent to US$523.3 million, from US$423.4 million. The operating margin for the third quarter was 25 percent of sales.
 Capital Expenditures
 Cemex invested US$241 million during the first nine months of 1992 as part of the company's capital expenditure program. Investment in the Huichapan plant totaled US$79 million which will expand capacity by 2 million tonnes. Cemex also continued the first phase of the half million tonne Atotonilco plant expansion with an investment of US$27 million and the construction of the new 3 million tonne Tepeaca plant in Puebla where the company has invested US$26 million. Cemex has also invested US$44 million in the ready-mix sector.
 During the rest of this decade, Cemex expects to invest an average of US$400 million per year in Mexico to maintain the company's current share of the growing cement market.
 The company also noted that the Mexican government announced a housing program of 570,000 units to be constructed during the next two years. The government's goal is to build 320,000 new houses in 1993 representing a growth of 28 percent over 1992.
 NOTE: Financial information from the recently acquired Spanish operations, Valenciana and Sanson, have not been consolidated into Cemex's financial statements. Audited financial information is not yet available and the acquisitions are included in assets under the caption "Securities Investments."
 (A) -- Exchange rate, constant Mexican pesos to U.S. dollars: 3,135.
 Cemex, S.A., headquartered in Monterrey, Mexico, is the fourth largest cement producer in the world, the largest in North America, and the leader in the Mexican and Spanish cement markets with 63 percent and 29 percent market shares, respectively, and total installed capacity of 35.4 million tonnes. The company is a major participant in the Mexican housing industry as well as the infrastructure development in the growing Mexican economy. Cemex shares are listed on the Mexican Stock Exchange (ticker: CEMEX) and Cemex's ADR's are traded over-the-counter (ticker: CMXBY).
 CEMEX, S.A. AND SUBSIDIARIES
 (Millions of dollars)(A)
 Nine Months Pct. Third Quarter Pct.
 1992 1991 Change 1992 1991 Change
 Income Statement
 Net sales $1,486.6 $1,233.9 20 $523.5 $423.4 24
 Cost of sales 898.5 762.9 18 323.7 267.1 21
 Gross profit 588.1 471.0 25 199.7 156.3 28
 Selling, general &
 admin. expenses 195.6 151.2 29 71.2 52.4 36
 Operating income 392.5 319.8 23 128.6 103.9 24
 Total comprehensive
 financing (cost) inc. (51.5) (101.8) (49) (11.5) (38.2) (70)
 Other financial items
 gain (loss) 118.0 174.7 (32) 27.7 63.7 (57)
 Net income before equity
 in net income of uncons.
 subs. and ext. items 451.8 373.1 21 149.2 132.8 12
 Consolidated net inc. 457.0 371.4 23 151.4 133.9 13
 Net income attributable
 to min. interest 57.8 35.6 62 18.6 4.7 298
 Net income after
 minority interest 399.2 335.8 19 132.7 129.2 3
 Balance Sheet
 Total assets 6,356.9 3,764.8 69 6,356.9 3,764.8 69
 Current assets 991.4 593.3 67 991.4 593.3 67
 Fixed assets 2,981.0 2,577.2 16 2,981.0 2,577.2 16
 Other assets 2,384.4 594.3 301 2,384.4 594.3 301
 Total liabilities 3,168.5 1,581.4 100 3,168.5 1,581.4 100
 Current liabilities 803.5 347.6 131 803.5 347.6 131
 Long-term
 liabilities 2,347.5 1,205.8 95 2,347.5 1,205.8 95
 Other liabilities 17.5 28.1 (38) 17.5 28.1 (38)
 Consolidated stock-
 holders' equity 3,188.3 2,183.3 46 3,188.3 2,183.3 46
 Stockholders' equity
 attributable to
 minority interest 476.5 419.4 14 476.5 419.4 14
 Stockholders' equity
 attributable to
 majority interest 2,711.8 1,763.9 54 2,711.8 1,763.9 54
 Operating Indicators
 Volume in tons
 (000s) 12,985.4 12,455.1 4 4,436.6 4,325.7 3
 Domestic 11,995.6 11,428.0 5 4,106.0 3,911.3 5
 Exports 989.7 1,027.0 (4) 330.6 414.4 (20)
 Ready-mix (000s of
 cubic meters) 3,641.6 2,908.3 25 1,346.1 984.7 37
 Financial Indicators
 Earnings per share(B) $1.28 $1.02 25 $0.42 $0.39 8
 Operating margin (pct.) 26.4 25.9 2 24.6 24.5 --
 Leverage (pct.)
 (Total debt/total
 capitalization) 47.8 39.8 20 47.8 39.8 20
 Current ratio
 (Current assets/
 current liabilities) 1.23 1.71 (28) 1.23 1.71 (28)
 Dividends per share(C) $0.19 $0.05 280 $0.19 $0.05 280
 (A) -- Figures converted to dollars from constant pesos at the end of each quarter, at the following exchange rates: third quarter 1991 equals 3,057, and third quarter 1992 equals 3,135.
 (B) -- Considering 330 million shares in 1991, and 313 million shares in 1992.
 (C) -- Paid annually during the second quarter.
 -0- 10/29/92
 /CONTACT: Humberto Moreira (financial) or Luis Martinez (media) of Cemex, in Monterrey, 011-52-83-45-2000; or Brian James (financial) of Burson-Marsteller, 212-614-5091, for Cemex/
 (CMXBY) CO: Cemex, S.A. ST: IN: CST SU: ERN


GK-OC -- NY036 -- 6560 10/29/92 12:04 EST
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