CEMEX reported its global results for 2017 this week with highlights as follows
- Net income reached US$806 million in 2017, from US$750 million in 2016, and was the highest net income generation since 2007.
- Free cash flow after maintenance CAPEX for the full year was US$1.3 billion and conversion of EBITDA into free cash flow after maintenance CAPEX reached 50%.
- Total debt plus perpetual notes was reduced by US$2.1 billion during 2017, on a pro-forma basis.
CEMEX announced that, on a like-to-like basis for the ongoing operations and adjusting for currency fluctuations, consolidated net sales increased by 4% during the fourth quarter of 2017 to US$3.4 billion, and increased 3% for the full year 2017 to US$13.7 billion versus the comparable periods in 2016. Operating EBITDA on a like-to-like basis decreased by 7% during the fourth quarter of 2017 to US$625 million and decreased by 6% for the full year to US$2.6 billion versus 2016.
Fernando A. Gonzalez, Chief Executive Officer of CEMEX, said: “Although 2017 was a challenging year, our two largest markets, Mexico and the United States, performed well with like-to-like increases in their EBITDA. We also generated free cash flow after maintenance CAPEX of close to US$1.3 billion, with a 50% EBITDA-to-free-cash-flow conversion rate and which, together with our asset-divestment initiatives, resulted in pro-forma debt reduction of close to US$2.1 billion during the year. We had important headwinds during the year: underperformance in Colombia, Egypt and the Philippines as well as increased energy costs, mainly in Mexico. As we have done in the past, we focused on the variables we control to dampen these headwinds and we continued to deliver solid results.”