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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: July 27, 2010
CEMEX, S.A.B. de C.V.
(Exact name of Registrant as specified in its charter)
CEMEX PUBLICLY TRADED STOCK CORPORATION WITH VARIABLE CAPITAL
(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
Contents
1. Press release, dated July 27, 2010, announcing second quarter 2010 results for CEMEX, S.A.B. de C.V. (NYSE:CX).
2. Second quarter 2010 results for CEMEX, S.A.B. de C.V. (NYSE:CX).
3. Presentation regarding second quarter 2010 results for CEMEX, S.A.B. de C.V. (NYSE:CX).
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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||
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(Registrant)
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Date:
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July 27, 2010
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By:
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/s/ Rafael Garza
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||
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Name: Rafael Garza
Title: Chief Comptroller
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Exhibit Index
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EXHIBIT NO.
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DESCRIPTION
|
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1.
|
Press release, dated July 27, 2010, announcing second quarter 2010 results for CEMEX, S.A.B. de C.V. (NYSE:CX).
|
|
2.
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Second quarter 2010 results for CEMEX, S.A.B. de C.V. (NYSE:CX).
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3.
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Presentation regarding second quarter 2010 results for CEMEX, S.A.B. de C.V. (NYSE:CX).
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Exhibit 1
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Media Relations
Jorge Pérez
(52-81) 8888-4334
mr@cemex.com
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Investor Relations
Eduardo Rendón
(52-81) 8888-4256
ir@cemex.com
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Analyst Relations
Luis Garza
(52-81) 8888-4136
ir@cemex.com
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CEMEX REPORTS SECOND QUARTER 2010 RESULTS
MONTERREY, MEXICO, July 27, 2010 – CEMEX, S.A.B. de C.V. (NYSE: CX), announced today that consolidated net sales decreased 3% in the second quarter of 2010 to approximately US$3.8 billion versus the comparable period in 2009. Operating EBITDA decreased 13% in the second quarter of 2010 to US$664 million versus the same period of 2009. Consolidated cement sales volume increased 3% versus the same period in 2009, while ready-mix and aggregates sales volumes decreased 5% and 4%, respectively.
CEMEX’s Consolidated Second Quarter Financial and Operational Highlights
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·
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Lower sales in the quarter were primarily attributable to a lower contribution from our U.S. and European operations.
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·
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The infrastructure and residential sectors were the main drivers of demand in most of our markets.
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·
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Operating income decreased 23% during the quarter compared with the same period last year, reaching US$295 million.
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·
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Free cash flow, after maintenance capital expenditures, for the quarter was US$187 million, down 59% from US$456 million in the same quarter of 2009.
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Fernando A. Gonzalez, Executive Vice President of Planning and Finance, said: "During this quarter we continued to make significant progress in our objective of reducing our debt. To this end, we paid close to US$650 million of our debt ahead of schedule. Also, despite the prevailing headwinds, we believe that economic conditions in most of our markets have stabilized or reached inflection points, as evidenced by positive cement sales volume performance in several of our markets. Our ongoing cost reduction and rightsizing efforts throughout our operations will allow us to take advantage of the economy as it recovers.”
Consolidated Corporate Results
Net income from continuing operations was a loss of US$301 million in the second quarter of 2010 versus income of US$173 million in the second quarter of 2009 due to lower operating income, higher financial expenses, a higher loss on financial instruments and a foreign exchange loss, which was partially mitigated by a gain in financial income.
Total debt plus perpetual notes decreased US$1,581 million, reflecting prepayments under the Financing Agreement, a positive conversion effect during the quarter, as well as a reduction in debt resulting from the exchange of a substantial portion of our perpetual debentures for new senior secured notes.
1
Geographical Markets Second Quarter Highlights
Net sales in our operations in Mexico increased 8% in the second quarter of 2010, to US$923 million, compared with US$853 million in the second quarter of 2009. Operating EBITDA decreased 2%, to US$321 million versus the same period of last year.
CEMEX’s operations in the United States reported net sales of US$684 million in the second quarter of 2010, down 8% from the same period in 2009. Operating EBITDA decreased 76%, to US$17 million, from US$70 million in the second quarter of 2009.
In Europe, net sales for the quarter decreased 10%, to US$1.3 billion, compared with US$1.5 billion in the second quarter of 2009. Operating EBITDA decreased 22%, to US$158 million, from US$204 million in the second quarter of 2009.
CEMEX’s operations in South/Central America and the Caribbean reported net sales of US$360 million during the second quarter of 2010, representing a decline of 4% over the same period of 2009. Operating EBITDA was flat at $128 million versus the same period in 2009.
Second-quarter net sales in Africa and the Middle East were US$262 million, down 2% from the same quarter of 2009. Operating EBITDA decreased 2%, to US$88 million for the quarter versus the comparable period in 2009.
Operations in Asia reported a 17% increase in net sales, to US$142 million, versus the second quarter of 2009, and Operating EBITDA was US$40 million, up 21% from the same period in the previous year.
CEMEX is a 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, changes in business strategy, and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove inco
rrect, actual results may vary materially from those described herein. CEMEX assumes no obligation to update or correct the information contained in this press release.
Operating EBITDA is defined as operating income plus depreciation and amortization. Free Cash Flow is defined as Operating 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. Net debt does not include the perpetual debentures. The net debt to Operating EBITDA ratio is calculated by dividing net debt at the end of the quarter by Operating EBITDA for the last twelve months. Financial ratios are calculated according to formulas established in the Fin
ancing Agreement. All of the above items are presented in US Dollars based on our Peso financial statements prepared under Mexican Financial Reporting Standards. Operating 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. Operating 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.
2
Exhibit 2
Exhibit 3
Forward looking information
This presentation contains certain forward-looking statements and information relating to CEMEX, S.A.B. de C.V. and
its subsidiaries (collectively, “CEMEX”) that are based on its knowledge of present facts, expectations and projections,
circumstances and assumptions about future events. Many factors could cause the actual results, performance or
achievements of CEMEX to be materially different from any future results, performance or achievements that may be
expressed or implied by such forward-looking statements, including, among others, the global financial crisis, changes
in general economic, political, governmental, and business conditions globally and in the countries in which CEMEX
operates, CEMEX’s ability to comply with the terms and obligations of the financing agreement entered into with major
creditors, changes in interest rates, changes in inflation rates, changes in exchange rates, the cyclical activity of
construction sector generally, changes in cement demand and prices, CEMEX’s ability to benefit from government
economic stimulus plans, changes in raw material and energy prices, changes in business strategy, changes in the
prevailing regulatory framework, natural disasters and other unforeseen events 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 as anticipated, believed, estimated, expected or targeted. Forward-looking
statements are made as of the date hereof, and CEMEX does not intend, nor is it obligated, to update these forward-
looking statements, whether as a result of new information, future events or otherwise.
its subsidiaries (collectively, “CEMEX”) that are based on its knowledge of present facts, expectations and projections,
circumstances and assumptions about future events. Many factors could cause the actual results, performance or
achievements of CEMEX to be materially different from any future results, performance or achievements that may be
expressed or implied by such forward-looking statements, including, among others, the global financial crisis, changes
in general economic, political, governmental, and business conditions globally and in the countries in which CEMEX
operates, CEMEX’s ability to comply with the terms and obligations of the financing agreement entered into with major
creditors, changes in interest rates, changes in inflation rates, changes in exchange rates, the cyclical activity of
construction sector generally, changes in cement demand and prices, CEMEX’s ability to benefit from government
economic stimulus plans, changes in raw material and energy prices, changes in business strategy, changes in the
prevailing regulatory framework, natural disasters and other unforeseen events 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 as anticipated, believed, estimated, expected or targeted. Forward-looking
statements are made as of the date hereof, and CEMEX does not intend, nor is it obligated, to update these forward-
looking statements, whether as a result of new information, future events or otherwise.
UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS,
BASED ON OUR MEXICAN FRS FINANCIAL STATEMENTS
BASED ON OUR MEXICAN FRS FINANCIAL STATEMENTS
Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
2
www.cemex.com
2Q10 RESULTS
2Q10 RESULTS
July 2010
July 2010
2Q10 messages
§ Deleveraging continues to be the focus of our financial strategy
§ Despite the impact of the current debt crisis in Europe, we still believe
that economic conditions in most of our markets have stabilized and /
or bottomed out; despite this, visibility is still not where we would like
it to be
that economic conditions in most of our markets have stabilized and /
or bottomed out; despite this, visibility is still not where we would like
it to be
§ We expect to be in compliance with our financial covenants
4
2Q10 results highlights
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January - June
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Second Quarter
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||||||
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2010
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2009
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% var
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l-t-l
% var |
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2010
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2009
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% var
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l-t-l
% var |
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||
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Net sales
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6,804
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7,243
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(6%)
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(9%)
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3,762
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3,877
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(3%)
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(2%)
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Gross profit
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1,948
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2,156
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(10%)
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(14%)
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1,128
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1,196
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(6%)
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(6%)
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Operating income
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443
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678
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(35%)
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(42%)
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295
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383
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(23%)
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(27%)
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Operating EBITDA
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1,179
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1,425
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(17%)
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(22%)
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664
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762
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(13%)
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(14%)
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Free cash flow after
maintenance capex |
16
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560
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(97%)
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187
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456
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(59%)
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Millions of US dollars
5
§ Infrastructure and housing were the main drivers of demand for our products in the
quarter
quarter
§ We believe that the second half of the year will continue to show operating EBITDA
growth and recovery, though potentially at a slower pace than originally expected
growth and recovery, though potentially at a slower pace than originally expected
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Ready mix
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Volume (l-t-l1)
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(10%)
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(5%)
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26%
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Price (USD)
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(4%)
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(6%)
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(4%)
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||
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Price (l-t-l1)
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(5%)
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(4%)
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0%
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Aggregates
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Volume (l-t-l1)
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(6%)
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(2%)
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33%
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Price (USD)
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0%
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(2%)
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(4%)
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||
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Price (l-t-l1)
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0%
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1%
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0%
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6M10 vs. 6M09
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2Q10 vs. 2Q09
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2Q10 vs. 1Q10
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Domestic gray
cement |
Volume (l-t-l1)
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(4%)
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(1%)
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21%
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Price (USD)
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1%
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(2%)
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(3%)
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||
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Price (l-t-l1)
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(1%)
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(3%)
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(1%)
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6
Consolidated volumes and prices
1 Like-to-like prices adjusted for investments/divestments and, in the case of prices, foreign-exchange fluctuations
www.cemex.com
REGIONAL
HIGHLIGHTS
HIGHLIGHTS
REGIONAL
HIGHLIGHTS
HIGHLIGHTS
July 2010
July 2010
Mexico
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6M10
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6M09
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% var
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l-t-l
% var |
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2Q10
|
2Q09
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% var
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l-t-l
% var |
|
|
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Net Sales
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1,665
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1,624
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3%
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(6%)
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|
923
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853
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8%
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3%
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Op. EBITDA
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579
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613
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(5%)
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(14%)
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321
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326
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(2%)
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(6%)
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% sales
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34.8%
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37.7%
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(2.9pp)
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34.8%
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38.3%
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(3.5pp)
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|
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|
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Volume
|
6M10 vs.
6M09 |
2Q10 vs.
2Q09 |
2Q10 vs.
1Q10 |
|
|
Cement
|
(8%)
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(5%)
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13%
|
|
|
Ready mix
|
(16%)
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(10%)
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11%
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|
|
Aggregates
|
(13%)
|
(12%)
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14%
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|
|
Price (LC)
|
6M10 vs.
6M09 |
2Q10 vs.
2Q09 |
2Q10 vs.
1Q10 |
|
|
Cement
|
(1%)
|
0%
|
1%
|
|
|
Ready mix
|
1%
|
3%
|
3%
|
|
|
Aggregates
|
12%
|
14%
|
3%
|
8
§ Construction during the first half of
2009 was strong, driven by special
government programs, making a
difficult comparison this year
2009 was strong, driven by special
government programs, making a
difficult comparison this year
§ Even though total investment in
infrastructure is expected to drop by
about 1%, we expect investment in
cement-intensive projects will drop by
about 17%, from a high level last year
infrastructure is expected to drop by
about 1%, we expect investment in
cement-intensive projects will drop by
about 17%, from a high level last year
§ Investment in the residential sector
expected to decrease slightly during the
year
expected to decrease slightly during the
year
§ Industrial and commercial sector
expected to show mid-single-digit
growth in 2010
expected to show mid-single-digit
growth in 2010
Millions of
US dollars
United States
|
|
|
6M10
|
6M09
|
% var
|
l-t-l
% var |
|
2Q10
|
2Q09
|
% var
|
l-t-l
% var |
|
|
|
Net Sales
|
1,236
|
1,472
|
(16%)
|
(16%)
|
|
684
|
746
|
(8%)
|
(8%)
|
|
|
|
Op. EBITDA
|
(7)
|
102
|
N/A
|
N/A
|
|
17
|
70
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(76%)
|
(76%)
|
|
|
|
% sales
|
(0.6%)
|
6.9%
|
N/A
|
|
|
2.4%
|
9.4%
|
(7.0pp)
|
|
|
|
|
Volume
|
6M10 vs.
6M09 |
2Q10 vs.
2Q09 |
2Q10 vs.
1Q10 |
|
|
Cement
|
(1%)
|
8%
|
31%
|
|
|
Ready mix
|
(6%)
|
3%
|
16%
|
|
|
Aggregates
|
(6%)
|
(2%)
|
17%
|
|
|
Price (LC)
|
6M10 vs.
6M09 |
2Q10 vs.
2Q09 |
2Q10 vs.
1Q10 |
|
|
Cement
|
(8%)
|
(7%)
|
(2%)
|
|
|
Ready mix
|
(14%)
|
(13%)
|
(2%)
|
|
|
Aggregates
|
(4%)
|
(1%)
|
0%
|
9
§ Volumes in the second quarter showed
the first year-over-year increase since
1Q06; aggregates volumes on a like-to-
like basis for the ongoing operations
increased by 3% for the quarter and
decreased by 2% year to date
the first year-over-year increase since
1Q06; aggregates volumes on a like-to-
like basis for the ongoing operations
increased by 3% for the quarter and
decreased by 2% year to date
§ Weak housing data following the
expiration of the homebuyer tax credit;
housing starts expected to increase
from last year’s level
expiration of the homebuyer tax credit;
housing starts expected to increase
from last year’s level
§ Contract awards for streets and
highways up 3% year over year in real
terms through June driven in part by
ARRA funds; as of May, SAFETEA-LU
funds pending obligation before
September 30 totaled about US$24B
highways up 3% year over year in real
terms through June driven in part by
ARRA funds; as of May, SAFETEA-LU
funds pending obligation before
September 30 totaled about US$24B
Millions of
US dollars
Europe
|
|
|
6M10
|
6M09
|
% var
|
l-t-l
% var |
|
2Q10
|
2Q09
|
% var
|
l-t-l
% var |
|
|
|
Net Sales
|
2,274
|
2,522
|
(10%)
|
(10%)
|
|
1,311
|
1,464
|
(10%)
|
(4%)
|
|
|
|
Op. EBITDA
|
163
|
241
|
(32%)
|
(32%)
|
|
158
|
204
|
(22%)
|
(16%)
|
|
|
|
% sales
|
7.2%
|
9.5%
|
(2.3pp)
|
|
|
12.0%
|
13.9%
|
(1.9pp)
|
|
|
|
|
Volume
|
6M10 vs.
6M09 |
2Q10 vs.
2Q09 |
2Q10 vs.
1Q10 |
|
|
Cement
|
(13%)
|
(6%)
|
64%
|
|
|
Ready mix
|
(10%)
|
(4%)
|
51%
|
|
|
Aggregates
|
(9%)
|
(4%)
|
58%
|
10
|
|
Price (LC)1
|
6M10 vs.
6M09 |
2Q10 vs.
2Q09 |
2Q10 vs.
1Q10 |
|
|
Cement
|
(5%)
|
(5%)
|
(4%)
|
|
|
Ready mix
|
(2%)
|
(2%)
|
(4%)
|
|
|
Aggregates
|
2%
|
1%
|
(6%)
|
1 Volume-weighted, local-currency average prices
§ Positive volume growth in the region
partially offset by continued weak
volumes in Spain and heavy rains and
floods in Poland during the quarter
partially offset by continued weak
volumes in Spain and heavy rains and
floods in Poland during the quarter
§ In most countries in the region,
infrastructure continues to be the main
driver for volume demand
infrastructure continues to be the main
driver for volume demand
§ Some leading indicators have
weakened in response to the debt crisis
in the region
weakened in response to the debt crisis
in the region
§ Impact of debt crisis on individual
countries will depend on their
underlying conditions; Germany, UK,
France, and Poland expected to have
positive volume growth in the year
countries will depend on their
underlying conditions; Germany, UK,
France, and Poland expected to have
positive volume growth in the year
Millions of
US dollars
South/Central America and the Caribbean
|
|
|
6M10
|
6M09
|
% var
|
l-t-l
% var |
|
2Q10
|
2Q09
|
% var
|
l-t-l
% var |
|
|
|
Net Sales
|
712
|
728
|
(2%)
|
(9%)
|
|
360
|
375
|
(4%)
|
(8%)
|
|
|
|
Op. EBITDA
|
254
|
261
|
(3%)
|
(10%)
|
|
128
|
128
|
(0%)
|
(5%)
|
|
|
|
% sales
|
35.7%
|
35.9%
|
(0.2pp)
|
|
|
35.6%
|
34.2%
|
1.4pp
|
|
|
|
|
Volume
|
6M10 vs.
6M09 |
2Q10 vs.
2Q09 |
2Q10 vs.
1Q10 |
|
|
Cement
|
(1%)
|
(2%)
|
1%
|
|
|
Ready mix
|
(8%)
|
(6%)
|
1%
|
|
|
Aggregates
|
3%
|
20%
|
20%
|
11
|
|
Price (LC)1
|
6M10 vs.
6M09 |
2Q10 vs.
2Q09 |
2Q10 vs.
1Q10 |
|
|
Cement
|
(3%)
|
(3%)
|
(0%)
|
|
|
Ready mix
|
(9%)
|
(8%)
|
(1%)
|
|
|
Aggregates
|
(10%)
|
(5%)
|
3%
|
1 Volume-weighted, local-currency average prices
§ Cement volume during the quarter
mainly driven by operations in Colombia
mainly driven by operations in Colombia
§ In Colombia, the expectations after the
recent presidential election are positive;
the recently elected government has
been very vocal in its support of the
housing sector to face the current
housing deficit in the country
recent presidential election are positive;
the recently elected government has
been very vocal in its support of the
housing sector to face the current
housing deficit in the country
§ Domestic gray cement volume for the
region is expected to remain flat during
the year
region is expected to remain flat during
the year
Millions of
US dollars
Africa and Middle East
|
|
|
6M10
|
6M09
|
% var
|
l-t-l
% var |
|
2Q10
|
2Q09
|
% var
|
l-t-l
% var |
|
|
|
Net Sales
|
525
|
532
|
(1%)
|
(4%)
|
|
262
|
267
|
(2%)
|
(4%)
|
|
|
|
Op. EBITDA
|
172
|
178
|
(3%)
|
(5%)
|
|
88
|
90
|
(2%)
|
(2%)
|
|
|
|
% sales
|
32.7%
|
33.4%
|
(0.7pp)
|
|
|
33.8%
|
33.6%
|
0.2pp
|
|
|
|
|
Volume
|
6M10 vs.
6M09 |
2Q10 vs.
2Q09 |
2Q10 vs.
1Q10 |
|
|
Cement
|
0%
|
(1%)
|
1%
|
|
|
Ready mix
|
(8%)
|
(6%)
|
4%
|
|
|
Aggregates
|
12%
|
10%
|
2%
|
12
|
|
Price (LC)1
|
6M10 vs.
6M09 |
2Q10 vs.
2Q09 |
2Q10 vs.
1Q10 |
|
|
Cement
|
5%
|
4%
|
1%
|
|
|
Ready mix
|
(15%)
|
(13%)
|
(2%)
|
|
|
Aggregates
|
2%
|
2%
|
(1%)
|
1 Volume-weighted, local-currency average prices
§ In the region, year-over-year growth in
cement volume in Egypt was offset by a
volume decline in the UAE
cement volume in Egypt was offset by a
volume decline in the UAE
§ In Egypt, infrastructure and informal
housing will continue to be the main
drivers of cement consumption.
housing will continue to be the main
drivers of cement consumption.
§ Egyptian government focusing on public
-private partnerships to speed up
infrastructure in areas such as roads,
railways, ports, hospitals, and
wastewater treatment
-private partnerships to speed up
infrastructure in areas such as roads,
railways, ports, hospitals, and
wastewater treatment
Millions of
US dollars
Asia
|
|
|
6M10
|
6M09
|
% var
|
l-t-l
% var |
|
2Q10
|
2Q09
|
% var
|
l-t-l
% var |
|
|
|
Net Sales
|
266
|
238
|
12%
|
7%
|
|
142
|
121
|
17%
|
12%
|
|
|
|
Op. EBITDA
|
73
|
61
|
19%
|
14%
|
|
40
|
33
|
21%
|
16%
|
|
|
|
% sales
|
27.4%
|
25.8%
|
1.6pp
|
|
|
28.3%
|
27.4%
|
0.9pp
|
|
|
|
|
Volume
|
6M10 vs.
6M09 |
2Q10 vs.
2Q09 |
2Q10 vs.
1Q10 |
|
|
Cement
|
22%
|
23%
|
6%
|
|
|
Ready mix
|
(10%)
|
(15%)
|
21%
|
|
|
Aggregates
|
1%
|
(5%)
|
16%
|
13
|
|
Price (LC)1
|
6M10 vs.
6M09 |
2Q10 vs.
2Q09 |
2Q10 vs.
1Q10 |
|
|
Cement
|
0%
|
2%
|
2%
|
|
|
Ready mix
|
(0%)
|
2%
|
1%
|
|
|
Aggregates
|
8%
|
8%
|
(3%)
|
1 Volume-weighted, local-currency average prices
§ Quarterly increase in cement volumes
in the region, driven mainly by growth in
the Philippines
in the region, driven mainly by growth in
the Philippines
§ In the Philippines, construction
spending is expected to continue to be
strong following a new wave of
optimism after the elections
spending is expected to continue to be
strong following a new wave of
optimism after the elections
§ The housing sector in the Philippines is
expected to continue to be supported
by increased remittances
expected to continue to be supported
by increased remittances
Millions of
US dollars
www.cemex.com
2Q10 RESULTS
2Q10 RESULTS
July 2010
July 2010
Operating EBITDA, cost of sales and SG&A
|
|
|
January - June
|
|
Second Quarter
|
|
||||||
|
2010
|
2009
|
% var
|
l-t-l
% var |
|
2010
|
2009
|
% var
|
l-t-l
% var |
|
||
|
|
Net sales
|
6,804
|
7,243
|
(6%)
|
(9%)
|
|
3,762
|
3,877
|
(3%)
|
(2%)
|
|
|
|
Operating EBITDA
|
1,179
|
1,425
|
(17%)
|
(22%)
|
|
664
|
762
|
(13%)
|
(14%)
|
|
|
|
% sales
|
17.3%
|
19.7%
|
(2.4pp)
|
|
|
17.7%
|
19.6%
|
(1.9pp)
|
|
|
|
|
Cost of sales
|
4,856
|
5,088
|
(5%)
|
|
|
2,634
|
2,681
|
(2%)
|
|
|
|
|
% sales
|
71.4%
|
70.2%
|
1.2pp
|
|
|
70.0%
|
69.2%
|
0.8pp
|
|
|
|
|
SG&A
|
1,505
|
1,477
|
2%
|
|
|
834
|
813
|
3%
|
|
|
|
|
% sales
|
22.1%
|
20.4%
|
1.7pp
|
|
|
22.2%
|
21.0%
|
1.2pp
|
|
|
15
§ Performance during the quarter was affected by declining volumes in some of our
markets and weaker prices, especially in the United States and Spain
markets and weaker prices, especially in the United States and Spain
§ Increase in SG&A as a percentage of sales resulting from lesser economies of scale
due to lower volumes and higher transportation costs, partially offset by savings from
cost-reduction initiatives
due to lower volumes and higher transportation costs, partially offset by savings from
cost-reduction initiatives
Millions of US dollars
Free Cash Flow
|
|
|
January - June
|
|
Second Quarter
|
|
||||
|
2010
|
2009
|
% var
|
|
2010
|
2009
|
% var
|
|
||
|
|
Operating EBITDA
|
1,179
|
1,425
|
(17%)
|
|
664
|
762
|
(13%)
|
|
|
|
- Net Financial Expense
|
542
|
401
|
|
|
267
|
203
|
|
|
|
|
- Maintenance Capex
|
92
|
87
|
|
|
64
|
46
|
|
|
|
|
- Change in Working Cap
|
376
|
445
|
|
|
48
|
126
|
|
|
|
|
- Taxes Paid
|
146
|
117
|
|
|
97
|
51
|
|
|
|
|
- Other Cash Items (net)
|
7
|
(69)
|
|
|
1
|
(49)
|
|
|
|
|
- Free cash flow D.O.
|
0
|
(116)
|
|
|
0
|
(72)
|
|
|
|
|
FCF after Maint Capex
|
16
|
560
|
(97%)
|
|
187
|
456
|
(59%)
|
|
|
|
- Expansion Capex
|
54
|
281
|
|
|
26
|
131
|
|
|
|
|
- Expansion Capex D.O.
|
0
|
6
|
|
|
0
|
2
|
|
|
|
|
Free Cash Flow
|
(38)
|
274
|
N/A
|
|
161
|
323
|
(50%)
|
|
16
D.O. = Discontinued Operations
Millions of US dollars
Other income statement items
§ Increase in financial expenses during the quarter reflects the terms of
Financing Agreement , as well as the substitution of bank debt with
bonds issued in December and January
Financing Agreement , as well as the substitution of bank debt with
bonds issued in December and January
§ Foreign-exchange loss for the quarter of US$101 million, due mainly
to the depreciation of the euro against the US dollar
to the depreciation of the euro against the US dollar
§ Loss on financial instruments of US$43 million resulting mainly from
the equity derivatives related to CEMEX and Axtel shares
the equity derivatives related to CEMEX and Axtel shares
§ Other expenses, net, of US$96 million during the quarter resulting
mainly from a loss in sale of assets, severance payments, and the
amortization of fees related to early redemption of debt
mainly from a loss in sale of assets, severance payments, and the
amortization of fees related to early redemption of debt
17
www.cemex.com
DEBT
INFORMATION
INFORMATION
DEBT
INFORMATION
INFORMATION
July 2010
July 2010
Debt-related activity in the quarter
§ In May, we completed the exchange of a substantial portion of our
perpetual debentures for new senior secured notes resulting in a
reduction in net debt of US$437 million
perpetual debentures for new senior secured notes resulting in a
reduction in net debt of US$437 million
§ Prepayment of about US$330 million under the Financing Agreement
during the quarter
during the quarter
§ Early payment of about US$317 million in Certificados Bursátiles
§ After the quarter ended, we announced an agreement to sell some
non-core assets in the US to Bluegrass Materials Company for
US$90 million
non-core assets in the US to Bluegrass Materials Company for
US$90 million
19
US$ million
Consolidated debt maturity profile
Total debt excluding perpetual debentures as of 2Q10
US$ 16,587
Fixed Income
Financing Agreement Amortizations
Other bank / WC debt
485
358
2,367
7,853
613
20
1,296
1,234
622
1,759
APPENDIX
APPENDIX
Additional information on debt
and perpetual notes
and perpetual notes
|
|
|
||||
|
2010
|
2009
|
% Var.
|
2010
|
||
|
|
Total debt
|
16,587
|
19,098
|
(13%)
|
16,472
|
|
|
Short-term
|
3%
|
30%
|
|
5%
|
|
|
Long-term
|
97%
|
70%
|
|
95%
|
|
|
Perpetual notes
|
1,290
|
3,024
|
(57%)
|
2,986
|
|
|
Cash and cash equivalents
|
748
|
921
|
(19%)
|
1,467
|
|
|
Net debt plus perpetual notes
|
17,129
|
21,201
|
(19%)
|
17,991
|
|
|
Consolidated Funded Debt / EBITDA2
|
7.19
|
N/A
|
|
N/A
|
|
|
Interest Coverage2
|
2.00
|
N/A
|
|
N/A
|
22
U.S.
dollar
dollar
67%
Euro
23%
Mexican
peso
peso
9%
Variable
63%
Fixed
37%
Millions of US dollars
Other
1%
1 Excluding perpetual notes.
2 Starting in the second quarter of 2010, calculated in accordance with our contractual obligations under our Financing Agreement.
Currency denomination1
Interest rate1
6M10 volume and price summary:
Selected countries
Selected countries
|
|
|
Domestic gray cement
6M10 vs. 6M09 |
|
Ready mix
6M10 vs. 6M09 |
|
Aggregates
6M10 vs. 6M09 |
||||||
|
Volumes
|
Prices
(USD) |
Prices
(LC)
|
|
Volumes
|
Prices
(USD) |
Prices
(LC) |
|
Volumes
|
Prices
(USD) |
Prices
(LC)
|
||
|
|
Mexico
|
(8%)
|
9%
|
(1%)
|
|
(16%)
|
11%
|
1%
|
|
(13%)
|
22%
|
12%
|
|
|
U.S.
|
(1%)
|
(8%)
|
(8%)
|
|
(6%)
|
(14%)
|
(14%)
|
|
(6%)
|
(4%)
|
(4%)
|
|
|
Spain
|
(27%)
|
(8%)
|
(6%)
|
|
(25%)
|
(10%)
|
(8%)
|
|
(11%)
|
(2%)
|
0%
|
|
|
UK
|
(1%)
|
(5%)
|
(5%)
|
|
(8%)
|
(5%)
|
(6%)
|
|
(2%)
|
(5%)
|
(6%)
|
|
|
France
|
N/A
|
N/A
|
N/A
|
|
(6%)
|
(4%)
|
(1%)
|
|
(8%)
|
1%
|
3%
|
|
|
Germany
|
(5%)
|
(3%)
|
2%
|
|
(11%)
|
(5%)
|
(1%)
|
|
(10%)
|
2%
|
7%
|
|
|
Poland
|
(7%)
|
0%
|
(6%)
|
|
10%
|
(8%)
|
(14%)
|
|
4%
|
(3%)
|
(8%)
|
|
|
Colombia
|
12%
|
10%
|
(9%)
|
|
(2%)
|
6%
|
(10%)
|
|
4%
|
13%
|
(8%)
|
|
|
Egypt
|
4%
|
8%
|
7%
|
|
13%
|
(3%)
|
(4%)
|
|
1%
|
1%
|
0%
|
|
|
Philippines
|
21%
|
7%
|
2%
|
|
N/A
|
N/A
|
N/A
|
|
N/A
|
N/A
|
N/A
|
23
2Q10 volume and price summary:
Selected countries
Selected countries
|
|
|
Domestic gray cement
2Q10 vs. 2Q09 |
|
Ready mix
2Q10 vs. 2Q09 |
|
Aggregates
2Q10 vs. 2Q09 |
||||||
|
Volumes
|
Prices
(USD) |
Prices
(LC)
|
|
Volumes
|
Prices
(USD) |
Prices
(LC) |
|
Volumes
|
Prices
(USD) |
Prices
(LC)
|
||
|
|
Mexico
|
(5%)
|
5%
|
0%
|
|
(10%)
|
8%
|
3%
|
|
(12%)
|
19%
|
14%
|
|
|
U.S.
|
8%
|
(7%)
|
(7%)
|
|
3%
|
(13%)
|
(13%)
|
|
(2%)
|
(1%)
|
(1%)
|
|
|
Spain
|
(23%)
|
(14%)
|
(6%)
|
|
(21%)
|
(15%)
|
(7%)
|
|
(5%)
|
(6%)
|
3%
|
|
|
UK
|
4%
|
(10%)
|
(5%)
|
|
(5%)
|
(9%)
|
(4%)
|
|
1%
|
(10%)
|
(4%)
|
|
|
France
|
N/A
|
N/A
|
N/A
|
|
2%
|
(10%)
|
(2%)
|
|
(4%)
|
(5%)
|
3%
|
|
|
Germany
|
5%
|
(10%)
|
(2%)
|
|
(2%)
|
(10%)
|
(2%)
|
|
0%
|
(5%)
|
3%
|
|
|
Poland
|
(6%)
|
(6%)
|
(6%)
|
|
15%
|
(14%)
|
(14%)
|
|
14%
|
(6%)
|
(6%)
|
|
|
Colombia
|
6%
|
3%
|
(8%)
|
|
(4%)
|
2%
|
(10%)
|
|
39%
|
9%
|
(4%)
|
|
|
Egypt
|
3%
|
6%
|
6%
|
|
14%
|
(6%)
|
(5%)
|
|
14%
|
2%
|
2%
|
|
|
Philippines
|
23%
|
8%
|
3%
|
|
N/A
|
N/A
|
N/A
|
|
N/A
|
N/A
|
N/A
|
24
Definitions
6M10 / 6M09: results for the first six months of the years 2010 and 2009,
respectively.
respectively.
Cement: When providing cement volume variations, refers to domestic gray
cement operations (starting in 2Q10, the base for reported cement volumes
changed from total domestic cement including clinker to domestic gray
cement)
cement operations (starting in 2Q10, the base for reported cement volumes
changed from total domestic cement including clinker to domestic gray
cement)
Operating EBITDA: Operating income plus depreciation and operating
amortization
amortization
Expansion capital expenditures: consist of expansion spending on our
cement, ready-mix, and other core businesses in existing markets
cement, ready-mix, and other core businesses in existing markets
LC: Local currency
Like-to-like percentage variation (l-t-l % var): Percentage variations adjusted
for investments/divestments and currency fluctuations
for investments/divestments and currency fluctuations
Maintenance capital expenditures: consist of maintenance spending on our
cement, ready-mix, and other businesses in existing markets
cement, ready-mix, and other businesses in existing markets
pp: percentage points
26
Contact information
|
Investor Relations
|
|
§ In the United States
+1 877 7CX NYSE § In Mexico
+52 81 8888 4292 § ir@cemex.com
|
|
Calendar of Events
|
||
|
|
October 26, 2010
|
Third quarter 2010 financial results and
conference call |
|
Stock Information
|
|
§ NYSE (ADS): CX
§ Mexican Stock Exchange:
CEMEXCPO § Ratio of CEMEXCPO to
CX:10 to 1 |
27