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CEMEX, S.A. REPORTS INCREASED SECOND QUARTER AND SIX MONTH SALES AND INCOME

 CEMEX, S.A. REPORTS INCREASED SECOND QUARTER
 AND SIX MONTH SALES AND INCOME
 MONTERREY, Mexico, July 21 /PRNewswire/ -- Cemex, S.A (NASDAQ: CMXBY) today announced that second quarter net income rose 19 percent to US$157 million (A) in nominal dollars, from US$132 million in the same period a year earlier. Net income per share rose 25 percent to US$0.50 in the second quarter, versus US$0.40 in 1991.
 Net earnings rose on an increase in consolidated net sales of 16 percent to US$503 million, from US$434 million. Domestic cement sales increased to US$292 million. Ready-mix concrete sales were US$94 million. Cement export sales were US$13 million. THe operating margin for the second quarter of 1992 was 28 percent of sales.
 Lorenzo Zambrano, chief executive officer of Cemex, stated: "Our modernization and cost improvement programs steadily grew earnings in the first half of 1992. We increased production while reducing staff by 245 through our long-term cost reduction program. In addition, our financial expenses were lowered by 44 percent due to the restructuring of our finances, decreasing bank debt and the effect of lower interest rates.
 "The market's growth was uneven in the different regions of Mexico, and lower in those regions where we have a greater market share. In the Northwest region, growth has been slow during the first half of the year; however, this region is expected to have an increasing growth trend.
 "We anticipate investing US$1 billion in our Mexican capital expenditure program from this year through 1994. As a result of this investment, we expect to increase our cement production capacity by 37 percent or 8.8 million tonnes, and to double our ready-mix production capacity. We will also invest approximately US$100 million in environmental control equipment.
 "We invested $US164 million to continue our capital expenditure program during the first half of this year. This investment will enable us to expand our Huichapan plant by 2 million tonnes. We also initiated the first phase of the 0.5 million tonne expansion of the Atotonilco plant and the construction of a new 3 million tonne capacity plant in Puebla. We have invested US$33 million in our ready-mix sector as well.
 "Our operating margins have improved during the first six months of 1992, and we anticipate that this improvement will continue for the remainder of the year. In fact, we realized 5 percent growth in the operating margin for ready-mix sales on increased volume of 19 percent."
 "We expect to realize improvements in operating margins from increases in production efficiency and capacity, increased sales in the more profitable ready-mix sector, an increase in sales prices and continued reductions in production and administrative expenses. During the second quarter, an organizational effectivity program was started to increase the efficiency of the utilization of the company's resources. The goal of this program is to obtain the maximum service level for our customers at the lowest cost to Cemex."
 Six Months Results
 Net income increased 28 percent for the first six months of 1992 to US$261 million, from US$204 for the prior year. Net income per share increased 35 percent from US$0.62 to US$0.84. Operating income rose as well, from US$213 million to US$259 million, a 22 percent gain.
 Consolidated net sales of US$945 million were 18 percent higher than last year's sales of US$800 million and 15 percent above the first quarter. Domestic sales grew 10 percent, to US$560 million form US$508 million. Ready-mix sales gained 28 percent to US$173 million, from US$135 million in 1991. Total cement exports were 659,000 tonnes, an increase of 8 percent over the same period last year. Twenty-nine percent of these exports were to Pacific Rim countries and the Caribbean, with higher prices than the United States, our traditional market.
 Cemex's year-to-date operating margin improved to 27.4 percent of sales, compared with 26.6 percent for the comparable period last year.
 The company noted that demand for Mexican cement had increased 6 percent in the first half of 1992, to 12.5 million tonnes. The Mexican economy has slowed since mid-1991 as a result of the government's anti- inflationary measures. Cemex estimates that 1992 domestic cement demand will increase by 6 percent to 8 percent rather than the 10 percent to 11 percent initially projected, due to this economic slowdown. Despite this, Cemex expects domestic cement demand to increase by 10 percent per year during the 1993-1994 period.
 (A): NOTE: 1991 exchange rate, constant Mexican pesos to dollars: 3,125.
 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 cement market with a 63 percent market share and total installed capacity of 23.9 million tonnes. The company is a major participant in the housing industry as well as the infrastructure development in the rapidly growing Mexican economy. Cement shares are listed in the Mexican Stock Exchange (ticker: CEMEX) and Cemex's ADR's are traded over the counter.
 CEMEX, S.A. AND SUBSIDIARIES
 (millions of dollars)(A)
 Second First Second
 Quarter Quarter Percent Quarter Percent
 INCOME STATEMENT 1992 1992 Var. 1992 1991 Var.
 Net sales 502.9 436.2 15.3 502.9 433.6 16.0
 Cost of sales 296.0 264.4 12.0 296.0 259.1 14.2
 Gross profit 206.9 171.8 20.4 206.9 174.5 18.6
 S,G&A expenses 67.2 54.1 24.3 67.2 53.0 26.8
 Operating inc. 139.7 117.7 18.6 139.7 121.5 15.0
 Total comprehensive
 financing (cost)
 income (26.3) (12.8) 104.8 (26.3) (48.5) (45.7)
 Other financial
 items (gain)
 loss 72.0 16.4 339.9 72.0 84.8 (15.0)
 Net inc. bef.
 equity in net inc.
 of uncons. subs.
 & ext. items 177.0 118.3 49.7 177.0 155.9 13.5
 Consolidated net
 income 179.2 119.1 50.5 179.2 152.7 17.3
 Net inc.
 attributable to
 min. interest 22.1 16.2 36.5 22.1 20.3 8.9
 Net inc. after
 minority
 interest 157.1 102.9 52.7 157.1 132.5 18.6
 BALANCE SHEET
 Total assets 4,693.3 4,073.6 15.2 4,693.3 3,526.1 33.1
 Current assets 1,095.7 703.0 55.9 1,095.7 500.7 118.8
 Fixed assets 2,842.9 2,716.3 4.7 2,842.9 2,449.7 16.1
 Other assets 754.7 654.4 15.3 754.7 575.7 31.1
 Total
 liabilities 1,629.7 1,763.9 (7.6) 1,629.7 1,512.5 7.8
 Current
 liabilities 453.9 456.7 (0.6) 453.9 339.7 33.6
 Long-term
 liabilities 1,158.9 1,297.9 (10.7) 1,158.9 1,136.2 2.0
 Other
 liabilities 16.9 9.3 (809.9) 16.9 36.6 (53.9)
 Consolidated
 stockholders'
 equity 3,063.6 2,309.7 32.6 3,063.6 2,013.6 52.1
 Stockholders'
 equity attributable
 to minority
 interest 455.0 432.5 5.2 455.0 426.0 6.8
 Stockholders'
 equity attributable
 to majority
 interest 2,608.5 1,877.2 39.0 2,608.5 1,587.6 64.3
 OPERATING INDICATORS
 Volume in tons 4,554,525 3,994,220 14.0 4,554,525 4,421,145 3.0
 Domestic 4,201,990 3,687,620 13.9 4,201,990 4,111,817 2.2
 Exports 352,535 306,600 15.0 352,535 309,328 14.0
 Ready-mix (cubic
 meters) 1,253,778 1,041,738 20.4 1,253,778 1,053,246 19.0
 FINANCIAL INDICATORS
 Earnings per
 share(B) 0.50 0.31 61.0 0.50 0.40 25.1
 Operating
 margin (in
 percents) 27.8 27.0 2.9 27.8 28.0 (0.9)
 Leverage
 (total debt/total
 capitalization
 (in percents) 33.7 39.7 (15.2) 33.7 42.6 (20.9)
 Current ratio
 (current assets/
 current
 liabilities) 2.41 1.54 56.8 2.41 1.47 63.8
 Div. per share(C) 0.19 0.19 0.05 280.0
 (A) Figures converted to dollars from constant pesos at the end of each quarter, at the following exchange rates: second quarter 1991 equals 3,020; first quarter 1992 equals 3,098; and second quarter 1992 equals 3,125.
 (B) Considering 330 million shares up to first quarter 1992, and 313 million shares at second quarter 1992.
 (C) Paid annually during the second quarter.
 CEMEX, S.A. AND SUBSIDIARIES
 (millions of dollars)(A)
 Six months Percent
 INCOME STATEMENT 1992 1991 Var.
 Net sales 944.8 799.6 18.2 pct.
 Cost of sales 563.8 489.2 15.3 pct.
 Gross profit 381.0 310.4 22.7 pct.
 S,G&A expenses 122.0 97.4 25.2 pct.
 Operating inc. 259.0 213.0 21.6 pct.
 Total comprehensive
 financing (cost)
 income (39.3) (62.8) (37.4) pct.
 Other financial
 items (gain)
 loss 88.6 109.4 (19.0) pct.
 Net inc. bef.
 equity in net inc.
 of uncons. subs.
 & ext. items 296.8 237.1 25.2 pct.
 Consolidated net
 income 299.8 234.4 27.9 pct.
 Net inc.
 attributable to
 min. interest 38.4 30.5 25.9 pct.
 Net inc. after
 minority
 interest 261.4 203.9 28.2 pct.
 BALANCE SHEET
 Total assets 4,693.3 3,526.1 33.1 pct.
 Current assets 1,095.7 500.7 118.8 pct.
 Fixed assets 2,842.9 2,449.7 16.1 pct.
 Other assets 754.7 575.7 31.1 pct.
 Total
 liabilities 1,629.7 1,512.5 7.8 pct.
 Current
 liabilities 453.9 339.7 33.6 pct.
 Long-term
 liabilities 1,158.9 1,136.2 2.0 pct.
 Other
 liabilities 16.9 36.6 (53.9) pct.
 Consolidated
 stockholders'
 equity 3,063.6 2,013.6 52.1 pct.
 Stockholders'
 equity attributable
 to minority
 interest 455.0 426.0 6.8 pct.
 Stockholders'
 equity attributable
 to majority
 interest 2,608.5 1,587.6 64.3 pct.
 OPERATING INDICATORS
 Volume in tons 8,548,745 8,129,357 5.2 pct.
 Domestic 7,889,610 7,516,716 5.0 pct.
 Exports 659,135 612,641 7.6 pct.
 Ready-mix (cubic
 meters) 2,295,516 1,923,596 19.3 pct.
 FINANCIAL INDICATORS
 Earnings per
 share(B) 0.84 0.62 35.2 pct.
 Operating
 margin (in
 percents) 27.4 26.6 2.9
 Leverage
 (total debt/total
 capitalization
 (in percents) 33.7 42.6 (20.9)
 Current ratio
 (current assets/
 current
 liabilities) 2.41 1.47 63.8 pct.
 Div. per share(C) 0.19 0.05 280.0 pct.
 (A) Figures converted to dollars from constant pesos at the end of each quarter, at the following exchange rates: second quarter 1991 equals 3,020; first quarter 1992 equals 3,098; and second quarter 1992 equals 3,125.
 (B) Considering 330 million shares IN 1991, and 313 million shares at second quarter 1992.
 (C) Paid annually during the second quarter.
 -0- 7/21/92
 /CONTACT: Kay Breakstone of Burson-Marsteller, 212-614-4449, for Cemex; or in Mexico, Humberto Moreira-financial contact, 011-52-83-45-2000, ext. 1480, or Luis Martinez, 011-52-83-45-2000, ext. 1051, both of Cemex/
 (CMXBY) CO: Cemex, S.A. ST: IN: SU: ERN


TQ-AS -- NY076 -- 1465 07/21/92 15:30 EDT
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