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
For the month of December, 2016
Commission File Number: 001-14946
CEMEX, S.A.B. de C.V.
(Translation of Registrants name into English)
Avenida Ricardo Margáin Zozaya #325, Colonia Valle del Campestre
San Pedro 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 ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Contents
1. | Press release of CEMEX, S.A.B. de C.V. (CEMEX) (NYSE:CX), dated December 6, 2016, announcing significant progress in its initiatives to bolster the companys path to regain an investment-grade capital structure. |
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.
CEMEX, S.A.B. de C.V. | ||||||||
(Registrant) | ||||||||
Date: | December 6, 2016 | By: | /s/ Rafael Garza | |||||
Name: Rafael Garza | ||||||||
Title: Chief Comptroller |
EXHIBIT INDEX
EXHIBIT |
DESCRIPTION | |
1. | Press release of CEMEX, S.A.B. de C.V. (CEMEX) (NYSE:CX), dated December 6, 2016, announcing significant progress in its initiatives to bolster the companys path to regain an investment-grade capital structure. |
Exhibit 1
Media Relations Jorge Perez +52(81) 8888-4334 mr@cemex.com |
Investor Relations Eduardo Rendon +52(81) 8888-4256 ir@cemex.com |
Analyst Relations Lucy Rodriguez +1(212) 317-6007 ir@cemex.com |
CEMEX MAKES SIGNIFICANT PROGRESS
TOWARDS INVESTMENT GRADE
MONTERREY, MEXICO. DECEMBER 6, 2016 CEMEX, S.A.B. de C.V. (CEMEX) (NYSE: CX) announced today significant progress in its initiatives to bolster the companys path to regain an investment-grade capital structure.
These initiatives include several transactions and efforts intended to strengthen CEMEXs EBITDA and cash flow generation as well as to reduce debt, which are expected to dampen the effects of continued market volatility. CEMEXs key financial and strategic milestones are the following:
| Year to date, CEMEX has announced divestments of close to U.S.$2 billion, about half of which have been completed and the rest are expected to close by early next year. As such, CEMEX will be able to meet its U.S.$1.5 to U.S.$2 billion 2017 asset disposal target ahead of schedule. |
| With the proceeds from asset divestments, as well as free cash flow generation and cash on hand, CEMEX has reduced total debt plus perpetual securities by more than U.S.$2 billion year to date, in line with this years target. Taking into account this reduction in debt, as well as expected additional debt payments before year end, CEMEX is on target to reach its leverage ratio target of about 4.25 times by the end of this year. |
| With the proceeds from pending asset divestments, as well as continued favorable free cash flow generation, CEMEX is also well on track to reach its debt reduction target of U.S.$3 to U.S.$3.5 billion by the end of 2017. |
| CEMEX is also currently on course to reach its initiatives to increase free-cash-flow by U.S.$670 million by the end of this year. In addition, the company expects to meet its cost-and-expense reduction target of U.S.$150 million which has contributed to CEMEXs improvement in profitability during 2016. |
Furthermore, CEMEX has increased its flexibility to optimize its use of proceeds from asset sales and free cash flow by enlarging its revolving credit facility under its facilities agreement, and now has no significant maturities until March 2018.
Despite challenging market conditions, working on the variables we can control has allowed us to be well on our way to significantly strengthen our capital structure, and we expect to continue to be able to do so in the near future, said Fernando A. Gonzalez, CEO of CEMEX.
CEMEX is a global building materials company that provides high quality products and reliable service to customers and communities in more than 50 countries. Celebrating its 110th anniversary, CEMEX has a rich history of improving the well-being of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future.
For more information about CEMEX, please visit: www.cemex.com
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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 herein described to be materially different from those expressed or implied in this release, including not consummating pending divestitures and not achieving the targets, goals, and milestones described in this press release. 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.