Q3 2024 Cemex SAB de CV Earnings Call Transcript
Key Points
- Cemex SAB de CV (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.
- The company's growth strategy, primarily focused on the US, contributed 13% of EBITDA in the quarter, showcasing its effectiveness.
- Net income showed exceptional strength, growing over 200% year-over-year.
- Cemex SAB de CV (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.
- The aggregates business in the US is now the largest contributor to profitability, accounting for 36% of EBITDA with margins in excess of 30%.
- The company's financial results were significantly impacted by extraordinary weather events, with an estimated $33 million impact on EBITDA.
- Consolidated volumes declined between low to mid-single digits due to adverse weather conditions and a slowdown in construction activity in key markets.
- Free cash flow after maintenance CapEx declined due to a one-off $306 million tax payment related to a Spanish tax penalty.
- The Mexican peso's significant depreciation posed a headwind to EBITDA.
- Electricity costs in Mexico rose by 30% due to transitioning power supply sourcing, impacting margins.
Good morning. Welcome to the Cemex third quarter 2024 conference call and webcast. My name is Adam, and I will be your operator for today. (Operator Instructions)
And now I will turn the conference over to Lucy Rodriguez, Chief Communications Officer. Please proceed.
Good morning. Thank you for joining us today for our third quarter 2024 conference call and webcast. We hope this call finds you in good health. I am joined today by Fernando Gonzalez, our CEO; and Maher Al-Haffar, our CFO. As always, we will spend a few minutes reviewing the business, and then we will be happy to take your questions.
I would like to remind you that during third quarter, we announced the sale of our Dominican Republic and Guatemala operations as well as the remaining minority stake in [Neuris]. This is in addition to the anticipated sale of our Philippines operations, which we announced in April. All of these operations have been
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