In This Article:
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Asset Sales: $1.4 billion in asset sales announced in the quarter, with year-to-date divestitures totaling $2.2 billion.
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EBITDA Contribution: Growth strategy contributed 13% of EBITDA.
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Net Income Growth: Over 200% year-over-year increase in net income.
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Weather Impact on EBITDA: Estimated $33 million impact due to extraordinary weather events.
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Free Cash Flow Impact: Decline due to a $306 million tax payment related to a Spanish tax penalty.
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Volume Decline: Consolidated volumes declined low to mid-single digits.
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Price Increase: Consolidated prices rose low single digits.
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EBITDA Margin: Urbanization solutions business margin rose 1.6 percentage points.
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Fuel Cost Reduction: 23% decline in fuel cost per tonne of cement year-to-date.
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Net Income for Nine Months: $891 million, 43% higher than last year.
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Leverage Ratio: Stood at 2.22 times, slightly higher due to lower EBITDA and tax payment.
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Full Year EBITDA Guidance: Adjusted to a low single-digit percentage decrease.
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CapEx Guidance: Reduced by $100 million to $1.5 billion.
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Cash Taxes Guidance: Reduced by $100 million to $900 million.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cemex SAB de CV (NYSE:CX) announced $1.4 billion in asset sales in the quarter, contributing to a total of $2.2 billion in divestitures year-to-date, aligning with their strategy to focus on developed markets.
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The company's growth strategy, primarily focused on the US, contributed 13% of EBITDA in the quarter, showcasing its effectiveness.
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Net income showed exceptional strength, growing over 200% year-over-year.
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Cemex SAB de CV (NYSE:CX) continues to make progress in decarbonization, with a 3% reduction in Scope 1 emissions year-to-date and significant advancements in carbon capture projects.
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The aggregates business in the US is now the largest contributor to profitability, accounting for 36% of EBITDA with margins in excess of 30%.
Negative Points
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The company's financial results were significantly impacted by extraordinary weather events, with an estimated $33 million impact on EBITDA.
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Consolidated volumes declined between low to mid-single digits due to adverse weather conditions and a slowdown in construction activity in key markets.
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Free cash flow after maintenance CapEx declined due to a one-off $306 million tax payment related to a Spanish tax penalty.
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The Mexican peso's significant depreciation posed a headwind to EBITDA.
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Electricity costs in Mexico rose by 30% due to transitioning power supply sourcing, impacting margins.