UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
_______________________
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or 15d-16
UNDER
THE SECURITIES EXCHANGE ACT OF 1934
_______________________
Date
of Report: March 6, 2008
CEMEX, S.A.B. de
C.V.
(Exact
name of Registrant as specified in its charter)
CEMEX
Corp.
(Translation
of Registrant's name into English)
United Mexican
States
(Jurisdiction
of incorporation or organization)
Av.
Ricardo Margáin Zozaya #325, Colonia Valle del Campestre
Garza García, Nuevo León, México
66265
Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover Form 20-F or Form 40-F.
Form
20-F X Form
40-F ___
Indicate
by check mark whether the registrant by furnishing the information contained in
this Form is
also
thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934.
Yes
____ No
X
If
"Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
N/A
|
Media
Relations
Jorge
Pérez
(52-81)
8888-4334
|
Investor
Relations
Eduardo
Rendón
(52-81)
8888-4256
|
Analyst
Relations
Luis
Garza
(52-81)
8888-4136
|
CEMEX
ANNOUNCES INCREASED SYNERGIES
FROM
RINKER INTEGRATION
MONTERREY, MEXICO, March 5, 2008 - CEMEX, S.A.B. de C.V.
(NYSE: CX) announced today at the company’s Investor and Analyst Conference,
CEMEX Day, that it has identified and is now capturing recurring cost synergies
worth approximately US$400 million from the integration of Rinker Group
Limited.
At the
time of the acquisition, CEMEX estimated that it would achieve US$130 million in
annual synergies after the first three years, but now expects to exceed US$200
million in 2008 alone. In addition, the company originally anticipated that the
average cost of funding the Rinker acquisition would be 6 percent, but it now
expects that the average cost for 2008 will be closer to 4 percent.
Moreover,
CEMEX will produce cost savings to improve efficiency, that coupled with PMI
savings, will reduce the ratio of SG&A to sales by around 150 basis points
this year.
“At
CEMEX, consistently generating solid returns for our shareholders has
always been a top priority,” said Lorenzo Zambrano, Chairman and CEO of CEMEX.
“Since 2000, CEMEX has evolved from a cement company to a global integrated
building materials company, all the while maintaining our commitment to our core
strategies – operational excellence, industry-leading integration capabilities,
driving cost efficiency, rigorous investment discipline and attracting and
retaining the best talent. We believe we have the right operating and financial
strategies in place and the right people to execute on those strategies to
ensure the continued success of CEMEX.”
Over
the past two years, CEMEX has invested almost $2.2 billion in growth capital
expenditures projects including increasing cement capacity by 13.5 million
metric tons in Mexico, the U.S., Panama, Spain, and Latvia. Additionally, the
company is increasing cement grinding capacity by 3.2 million metric tons in
Spain, the U.K, and the United Arab Emirates.
In
2008, CEMEX plans to invest more than half of its expected $3 billion in free
cash flow in growth capital expenditures, primarily to complete projects already
underway. These projects are expected to produce a return on capital employed in
excess of 10% by 2010.
CEMEX
expects to make significant progress toward achieving a net-debt-to-EBITDA ratio
of 2.7 times by mid 2009 and to maintain interest coverage ratio above 4.5
times. As previously announced, CEMEX expects to generate EBITDA of about $5.6
billion in 2008, compared to $4.6 billion last year.
CEMEX
is a growing global building materials company that provides high quality
products and reliable service to customers and communities in more than 50
countries throughout the world. CEMEX has a rich history of improving the
well-being of those it serves through its efforts to pursue innovative industry
solutions and efficiency advancements and to promote a sustainable future. For
more information, visit www.cemex.com.
###
This
press release contains forward-looking statements and information that are
necessarily subject to risks, uncertainties and assumptions. Many factors could
cause the actual results, performance or achievements of CEMEX to be materially
different from those expressed or implied in this release, including, among
others, changes in general economic, political, governmental and business
conditions globally and in the countries in which CEMEX does business, changes
in interest rates, changes in inflation rates, changes in exchange rates, the
level of construction generally, changes in cement demand and prices, changes in
raw material and energy prices, weather conditions, changes in business strategy
and various other factors. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from those described herein. CEMEX assumes no obligation to
update or correct the information contained in this press release.
EBITDA
is defined as operating income plus depreciation and amortization. Free Cash
Flow is defined as EBITDA minus net interest expense, maintenance and expansion
capital expenditures, change in working capital, taxes paid, and other cash
items (net other expenses less proceeds from the disposal of obsolete and/or
substantially depleted operating fixed assets that are no longer in operation).
Net debt is defined as total debt minus the fair value of cross-currency swaps
associated with debt minus cash and cash equivalents. The net debt to EBITDA
ratio is calculated by dividing net debt at the end of the quarter by EBITDA for
the last twelve months. All of the above items are derived from generally
accepted accounting principles in Mexico. EBITDA and Free Cash Flow (as defined
above) are presented herein because CEMEX believes that they are widely accepted
as financial indicators of CEMEX's ability to internally fund capital
expenditures and service or incur debt. EBITDA and Free Cash Flow should not be
considered as indicators of CEMEX's financial performance, as alternatives to
cash flow, as measures of liquidity or as being comparable to other similarly
titled measures of other companies.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de
C.V. has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
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CEMEX,
S.A.B. de C.V.
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(Registrant)
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Date:
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March
6, 2008
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By:
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/s/
Rafael Garza
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Name:
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Rafael
Garza
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Title:
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Chief
Comptroller
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