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CEMEX ANNOUNCES RECORD SALES AND EARNINGS FOR 1991

 CEMEX ANNOUNCES RECORD SALES AND EARNINGS FOR 1991
 MONTERREY, Mexico, Feb. 25 /PRNewswire/ -- Cemex S.A. (ADR - NASDAQ: CMXBY) today reported record sales and income for 1991.
 For the year ended Dec. 31, 1991, net sales rose to US$1.7 billion, an increase of 31 percent over the US$1.3 billion for 1990. Operating income amounted to US$420.2 million, an increase of 111 percent from the US$198.9 million reported for 1990. Net income for 1991 was US$422 million, an increase of 195 percent over the US$150 million reported for the previous year. Net income for 1991 includes extraordinary gains of US$55 million attributable in large part to gains on the sale of treasury shares.
 Earnings per share were US$1.34 for 1991 in comparison with US$0.45 for 1990. Each Cemex ADR represents two ordinary shares.
 For the fourth quarter of 1991, net sales were US$408.8 million, up 30 percent from the US$313.5 million reported for the same period of 1990 despite a relative reduction in volume sales due to heavy rains during the last two months of the year. Operating income for the fourth quarter was US$84.1 million, up 39 percent from the US$60.3 million reported for the same period of 1990. Net income for the fourth quarter of 1991 was US$89 million, an increase of 13 percent over the US$78.8 million for the same period of 1990.
 Cemex enjoyed an exceptional year in 1991. The company benefited from the continuing recovery of the Mexican economy, from the completion of its operational and financial restructuring, and from the price deregulation process.
 Cemex's domestic sales of cement increased by 10.3 percent in volume in comparison with the previous year, while sales of ready-mix concrete rose 16 percent. These figures reflect the increasing demand from Mexican consumers and the success of Cemex's marketing strategies.
 The operating margin in 1991 was 25 percent in comparison with 15 percent in 1990. The improvement was a result of higher sales volume, increased productivity, and stronger market prices.
 Total exports in 1991 decreased by 38 percent compared with 1990. However, this reduction did not significantly affect the company's financial results. During 1991, Cemex also diversified its export markets to include the Pacific Rim countries and the Caribbean.
 The legal proceedings on the purported dumping of Mexican cement in the U.S. market continue before the International Trade Commission of the United States and at the GATT. The company anticipates a favorable decision in this matter during the first six months of 1992.
 In 1991, Cemex completed its financial restructuring, as a result of which its leverage ratio was reduced to 39 percent from 46 percent in 1990. This was accomplished by the consolidation of short-term debt into long-term debt and by the reduction in total indebtedness through the use of proceeds from an equity placement. In addition, the current ratio (current assets/current liabilities) reached a level of 2.2 in 1991, in comparison with 1.1 in 1990.
 Between 1986 and 1990, Cemex implemented an ambitious investment program amounting to US$2 billion which allowed it to double its capacity. Following the substantial completion of this program, the company in 1991 consolidated its financial position by raising more than US$1 billion in the international and domestic financial markets. The transactions in 1991 included:
 -- A long-term Eurobond issue for US$425 million with a five-year maturity. The issue was placed with institutional investors, several of whom invested in Mexico for the first time, thus demonstrating the confidence of foreign investors in the country and in Cemex.
 -- The placement of US$190 million in equity through the sale of treasury shares, primarily in the United States.
 -- Medium-term Euronotes for US$250 million with maturities of one, three and five years.
 -- 800 billion Mexican pesos in medium-term promissory notes on the Mexican market.
 The success of these placements of debt and equity reflects the confidence that the financial markets have in the strategy followed by Cemex during 1990 and 1991. This confidence in the company, in combination with the perception in the international financial markets that the Mexican economic recovery is a durable, long-term phenomenon, favorably influenced the cost of capital and the price of Cemex's shares.
 In light of the sustained growth in market demand expected during the 1990s, Cemex also announced in 1991 a US$1 billion dollar investment program for the next three years to increase its installed capacity by 8.8 million metric tons or more than 35 percent. In addition, the company plans to double its ready-mix capacity.
 The company has also taken other steps to ensure its continued successful development. In July 1991, the company implemented a new organizational structure designed to make best use of available human resources, while increasing productivity and profitability. In addition, Cemex is continuing its training programs at all organizational levels.
 Cemex the Largest Cement Producer in the Americas
 Cemex based in Monterrey, is an international company principally involved in the production and distribution of cement and ready-mix concrete. With 1991 sales of $1.7 billion, the company is also one of the world's lowest cost producers of cement. Measured by its market capitalization of more than $6 billion, Cemex is the second largest company listed on the Mexican Stock Exchange, where it is traded under the symbol CEMEX.
 -0- 2/25/92
 /CONTACT: Luis Martinez, 011-52-83-45-2000, ext. 1051, or Grazziella Gaona (investors), 011-52-83-45-2000, ext. 1355, both of Cemex S.A.; or Michael Rust of Burson-Marsteller, 212-614-4673, for Cemex S.A./
 (CMXBY) CO: Cemex S.A. ST: IN: CST SU: ERN


CK-OS -- NY030 -- 2295 02/25/92 11:12 EST
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Date:Feb 25, 1992
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