CEMEX Announces 19% Increase in Fourth Quarter EBITDA and 10% Growth in Cement Volumes

CEMEX reports strong fourth-quarter results with a 19% increase in EBITDA and a 10% rise in cement volumes, showcasing significant momentum and cost savings under the "Operation Resilience" program.

CEMEX Announces 19% Increase in Fourth Quarter EBITDA and 10% Growth in Cement Volumes
Photo by rc.xyz NFT gallery / Unsplash

CEMEX, S.A.B. de C.V. (CEMEX) (NYSE: CX), a global leader in the building materials industry, announced impressive results for the fourth quarter of 2020. The company experienced a 19% increase in operating EBITDA to US$644 million and a 10% growth in cement volumes, driven by robust performance across most regions. Consolidated net sales rose by 9% to US$3.5 billion during the quarter, marking the highest sales reported for a fourth quarter since 2014. This growth is attributed to significant momentum in cement volumes and effective cost savings achieved through the "Operation Resilience" program.

The increase in EBITDA was complemented by a 9% growth in free cash flow after maintenance capital expenditures, reaching US$575 million. Additionally, CEMEX saw a controlling interest net income of US$70 million in the fourth quarter of 2020, a significant improvement from a loss of US$238 million in the same quarter of 2019. Despite the challenges posed by COVID-19, CEMEX made substantial progress toward its deleveraging goal, reducing net debt plus perpetuals by US$1,027 million in 2020.

CEMEX's CEO, Fernando A. González, highlighted 2020 as a challenging yet remarkable year that tested the company's strengths and strategic initiatives. The company's efforts to adjust protocols and work safely during the pandemic were recognized, although it mourned the loss of valued colleagues to the virus.

The report also detailed geographical market highlights for the fourth quarter of 2020, with significant sales increases in Mexico, the United States, Europe, the Middle East, Africa, Asia, and the South, Central America, and the Caribbean region. CEMEX's strategic focus on improving the well-being of those it serves through sustainable building solutions and its commitment to achieving carbon neutrality underscore its role as a forward-thinking leader in the construction materials industry.