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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
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Date of Report: November 1, 2006
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 Margain Zozaya #325, Colonia Valle del Campestre
Garza Garcia, Nuevo Leon, Mexico 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
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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
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
N/A
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Contents
1. Press release, dated October 25, 2006, announcing results for the third
quarter of 2006 for CEMEX, S.A.B. de C.V. (NYSE: CX), including an increase in
consolidated net sales of 8% to US$4.65 billion. EBITDA in the third quarter of
2006 grew 10% to US$1.11 billion.
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.
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(Registrant)
Date: November 1, 2006 By: /s/ Rafael Garza
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Name: Rafael Garza
Title: Chief Comptroller
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
- ----------- -----------
1. Press release, dated October 25, 2006, announcing
results for the third quarter of 2006 for CEMEX, S.A.B.
de C.V. (NYSE: CX), including an increase in
consolidated net sales of 8% to US$4.65 billion. EBITDA
in the third quarter of 2006 grew 10% to US$1.11
billion.
Exhibit 1
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Media Relations Investor Relations Analyst Relations
Jorge Perez Eduardo Rendon Ricardo Sales
(52-81) 8888-4334 (52-81) 8888-4256 (212) 317-6008
[CEMEX GRAPHIC OMITTED]
CEMEX'S THIRD QUARTER 2006 SALES INCREASE 8%;
EBITDA UP 10%
MONTERREY, MEXICO, October 25, 2006 - CEMEX, S.A.B. de C.V. (NYSE: CX) announced
today that consolidated net sales increased 8% in the third quarter of 2006 to
US$4.65 billion. EBITDA in the third quarter of 2006 grew 10% to US$1.11
billion.
CEMEX Consolidated Third Quarter Financial and Operational Highlights
- ---------------------------------------------------------------------
o EBITDA (operating income plus depreciation and amortization) increased
to US$1.11 billion, 10% more than the US$1.01 billion achieved in the
third quarter of 2005.
o Free cash flow after maintenance capital expenditures was US$816
million, 11% more than in third quarter 2005.
o Sales increased in the majority of CEMEX's markets due to higher
cement, ready-mix, and aggregates volumes. Public infrastructure and
housing continue to be the main drivers of cement and ready-mix demand
in most of our markets.
o Operating income increased 6% during the quarter, to US$821 million in
the third quarter of 2006 from US$771 million in the third quarter of
last year.
o CEMEX's consolidated cement volume increased 3%, reaching 22.3 million
metric tons.
Hector Medina, Executive Vice President of Planning and Finance, said: "CEMEX
continues to make progress in generating profitability across the entire value
chain. In the third quarter, net sales increased in the majority of our markets,
as public infrastructure and housing continue to drive cement and ready-mix
demand. We remain confident in our ability to deliver consistent returns and
continued growth in most of our businesses."
Consolidated Corporate Results
- ------------------------------
In the third quarter of 2006, majority net income increased 24% to US$836
million from US$675 million in the third quarter of 2005. The increase in
majority net income for the quarter is primarily the result of stronger
operating performance, the recognition of the extraordinary gain from the sale
of Semen Gresik, and foreign-exchange and financial-instrument gains.
Net debt at the end of the third quarter was US$7.14 billion, representing
reductions of US$976 million during the quarter and US$3.3 billion since the end
of first quarter 2005. The net-debt-to-EBITDA ratio decreased to 1.8 times from
2.1 times at the end of the second quarter in 2006. Interest coverage reached
8.3 times during the quarter, up from 6.5 times a year ago.
Third Quarter Highlights - Major Markets
- ----------------------------------------
Net sales in our Mexican operations reached US$899 million, an increase of 15%
over those of third quarter last year. EBITDA increased 5% during the quarter
versus the same period last year, reaching US$325 million. Cement and ready-mix
volumes increased 8% and 21%, respectively, during the quarter versus the same
quarter in 2005.
CEMEX's net sales in the United States decreased 9%, reaching US$1.08 billion,
while EBITDA increased 2%, from US$329 million to US$336 million. On a
like-to-like basis for the ongoing operations during third quarter 2006, cement
volumes in the United States decreased 6%, ready-mix volumes decreased 25%, and
aggregates volumes decreased 19%, compared with the same period a year ago.
CEMEX's operations in Spain reported net sales of US$434 million, an increase of
15% over those of third quarter 2005. EBITDA increased 24%, reaching US$133
million in the quarter. Domestic cement volume increased 11% during the third
quarter of 2006 over the same quarter in 2005. Ready-mix volumes, adjusted for
the integration of the Readymix Asland assets after the termination of the joint
venture with Lafarge in December 2005, increased 5% during the third quarter
versus the comparable period a year ago.
Our operations in the United Kingdom experienced a 5% increase in net sales over
those of the third quarter of 2005, reaching US$502 million. EBITDA decreased
19% in the third quarter to US$41 million from US$50 million in the same quarter
of 2005. On a like-to-like basis, EBITDA increased 15% for the third quarter.
Rest of Europe
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Net sales in the Rest of Europe region increased 13% during the third quarter
versus the comparable period last year, reaching US$969 million. Similarly,
EBITDA grew 15%, from US$128 million to US$147 million.
South/Central America and Caribbean
CEMEX's operations in the South/Central America and Caribbean region reported
net sales of US$412 million during the third quarter of 2006, an increase of 15%
over those of the third quarter of 2005. EBITDA increased 30% versus the same
period last year, reaching US$134 million.
Africa and Middle East
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Third quarter net sales in the Africa and Middle East region were US$184
million, up 19% from the same quarter in 2005. EBITDA increased 13%, reaching
US$49 million.
Asia
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CEMEX's Asian operations experienced net sales of US$83 million, an increase of
8% over those in the third quarter of 2005. EBITDA for the region increased 44%,
reaching US$19 million, versus the comparable period last year.
CEMEX is a growing global building solutions company that provides high quality
products and reliable service to customers and communities in more than 50
countries throughout the world. Commemorating its 100th anniversary in 2006,
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.
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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 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, 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
presented under 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.