Sources: Cemex S.A.B. de C.V., Monterrey, Mexico
In an upbeat second quarter earnings report, Cemex assures investors that asset prioritizing and debt reduction are top of mind. “With the objective of accelerating our path to investment grade and enhancing total shareholder return, we are announcing ‘A Stronger Cemex,’” says Chief Executive Fernando Gonzalez. “During the next 2.5 years, we will work to optimize our portfolio by focusing on markets with the greatest long-term growth potential and selling between $1.5 billion and $2 billion of assets.
“We will also implement actions to achieve $150 million in cost savings as an opportunity to continue improving our profitability. Furthermore, we will reduce total debt by $3.5 billion by the end of 2020, and return capital to shareholders through an annual cash dividend starting in 2019,” he adds.
U.S. operations have proved top performers in the Cemex portfolio this year. Cement, ready mixed and aggregate sales reached $989 million in the second quarter, up 9 percent year-over-year. “Our operations in the U.S. indicate a strong sequential growth in volumes resulting from strong demand and pent-up activity after adverse weather conditions in the first quarter, as well as improved pricing dynamics,” Gonzalez affirms.