UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
_______________________
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or 15d-16
UNDER
THE SECURITIES EXCHANGE ACT OF 1934
_______________________
Date of
Report: March 14, 2008
CEMEX, S.A.B. de
C.V.
(Exact
name of Registrant as specified in its charter)
CEMEX
Corp.
(Translation
of Registrant's name into English)
United Mexican
States
(Jurisdiction
of incorporation or organization)
Av.
Ricardo Margáin Zozaya #325, Colonia Valle del Campestre
Garza García, Nuevo León,
México 66265
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover Form 20-F or Form 40-F.
Form 20-F
X Form
40-F ___
Indicate
by check mark whether the registrant by furnishing the information contained in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
____ No
X
If "Yes"
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
N/A
|
Media
Relations
Jorge
Pérez
(52-81)
8888-4334
|
Investor
Relations
Eduardo
Rendón
(52-81)
8888-4256
|
Analyst
Relations
Luis
Garza
(52-81)
8888-4136
|
CEMEX
PROVIDES GUIDANCE FOR
THE
FIRST QUARTER OF 2008
MONTERREY, MEXICO, March 13, 2008 - CEMEX, S.A.B. de C.V.
(NYSE: CX) announced today that it expects EBITDA for the quarter ending March
31, 2008 of around US$920 million, an increase of about 6% versus the same
period last year, while operating income is expected to be close to US$420
million, 25% lower than the same period a year ago. Sales for the first quarter
are expected to be in excess of US$5.3 billion, an increase of about 24%
versus the same period last year. Adjusting for the fewer business days versus
the same period last year as a result of the earlier occurrence of religious
holidays, which last year took place during the second quarter, sales and EBITDA
would be expected to increase by about 27% and 10%, respectively, versus first
quarter 2007.
On a
pro-forma basis for the continuing operations, adjusting for the consolidation
of Rinker, sales and EBITDA for the quarter are expected to decrease 1% and 22%,
respectively, in U.S. dollar terms, versus the same quarter last
year.
Rodrigo
Treviño, CEMEX’s Chief Financial Officer, said: “Despite continued weakness in
some of our markets, our fundamentals remain unchanged. Given our expectations
for the quarter — together with the unfavorable comparison with first
quarter 2007, which was characterized by benign weather conditions in the United
States and most of Europe — we are in line with our yearly
expectations. We maintain our full year guidance to generate EBITDA and
free cash flow after maintenance capital expenditures of about US$5.6 billion
and US$3.0 billion, respectively, given the stronger exchange rate environment.
This is also despite the U.S. residential sector downturn and softening demand
in markets like Spain and U.K. Our geographic diversification continues to
mitigate the impact of individual countries in our portfolio.”
“Additionally,
we identified and are now capturing synergies worth about $400 million from the
integration of Rinker, US$200 million of which are expected to be realized this
year. Moreover, we expect to produce cost savings to improve efficiency, that
coupled with savings from our post-merger integration effort, will reduce the
ratio of SG&A to sales by around 150 basis points this year.”
“Furthermore,
we remain committed to regain our financial flexibility. We expect to reach a
net-debt-to-EBITDA ratio of 3.0 times by the end of this year and of 2.7 times
by mid-2009.”
During
the first quarter, CEMEX expects domestic cement and ready-mix sales volumes in
Mexico, adjusted for the fewer business days during the quarter given
religious holidays, to decline about 4% and 12% respectively versus the
comparable period last year. Domestic cement and ready-mix sales volumes in
Mexico are expected to decrease by about 7% and 14%, respectively, versus the
same quarter a year ago. Volumes during the quarter have been negatively
affected by a delay in project starts from the infrastructure sector, but which
are expected to recover during the second half of the year. The formal
residential sector continued with its strong performance.
Cement,
ready-mix and aggregates volumes for CEMEX’s operations in the United States are
expected to decrease about 5%, increase about 33%, and increase about 115%,
respectively, during the first quarter, versus the same period last
year.
On a
like-to-like basis for the ongoing operations, cement volumes are expected to
decrease by about 23%, ready-mix volumes are expected to decrease by about 27%,
and aggregates volumes are expected to decrease by about 26% for the quarter
versus the comparable period last year.
The
decline in demand continues to be driven by the ongoing correction in the
residential sector which makes comparisons in the current quarter on a
like-to-like basis unfavorable versus prior year. In addition, adverse weather
conditions in many regions of the country, including Florida, California,
Arizona and Nevada, affected our volumes during the quarter.
In our
Spanish operations, and on a like-to-like basis adjusting for the fewer business
days during the quarter, cement and ready-mix volumes, are expected to
decline about 12% and 11% respectively when compared to the same period a year
ago. Cement and ready-mix volumes are expected to decrease by about 15% and
13%, respectively, during the first quarter versus the comparable period of last
year. Volumes during the quarter have been affected by the continued
deceleration in the residential sector. Growth in the civil sector has moderated
due to the general elections held at the beginning of the
month.
During
the first quarter, CEMEX expects cement volumes in the United Kingdom to
decrease by about 6%, ready-mix volumes are expected to decrease by about 11%,
and aggregates volumes are expected to remain stable versus the comparable
quarter last year. On a like-to-like basis, adjusting for the fewer business
days during the quarter and, in the case of ready-mix, the divestments done
during 2007, cement and ready-mix volumes are expected to decrease by about 1%,
and aggregates volumes are expected to increase by about 5% versus the
comparable period of last year. The volume for cementitious materials, including
cement and slag, is expected to decrease by about 5%, for the quarter
versus the comparable period of last year. Adjusting for the fewer business days
during the quarter, the volume for cementitious materials is expected to
increase by about 1% versus the same period in 2007. The industrial and
commercial sector, and to a lesser extent, the infrastructure sector, were the
main drivers of demand in the country.
Despite
the weakness in some of our major markets, our geographic diversification has
helped partially mitigate the impact of those slowdowns, which will be somewhat
offset by continuing strength in our Eastern Europe, South America and Australia
businesses.
Guidance
numbers are calculated on the basis of market close exchange rates as of March
13, 2008. Given the volatility of foreign exchange rates and the exposure of our
operations to factors beyond our control, our actual results could be materially
different from our indicative guidance.
CEMEX is
a growing global building materials company that provides high quality products
and reliable service to customers and communities in more than 50 countries
throughout the world. CEMEX has a rich history of improving the well-being of
those it serves through its efforts to pursue innovative industry solutions and
efficiency advancements and to promote a sustainable future. For more
information, visit www.cemex.com.
###
This
press release contains forward-looking statements and information that are
necessarily subject to risks, uncertainties and assumptions. Many factors could
cause the actual results, performance or achievements of CEMEX to be materially
different from those expressed or implied in this release, including, among
others, changes in general economic, political, governmental and business
conditions globally and in the countries in which CEMEX does business, changes
in interest rates, changes in inflation rates, changes in exchange rates, the
level of construction generally, changes in cement demand and prices, changes in
raw material and energy prices, weather conditions, changes in business strategy
and various other factors. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from those described herein. CEMEX assumes no obligation to
update or correct the information contained in this press release.
EBITDA
is defined as operating income plus depreciation and amortization. Free Cash
Flow is defined as EBITDA minus net interest expense, maintenance and expansion
capital expenditures, change in working capital, taxes paid, and other cash
items (net other expenses less proceeds from the disposal of obsolete and/or
substantially depleted operating fixed assets that are no longer in operation).
Net debt is defined as total debt minus the fair value of cross-currency swaps
associated with debt minus cash and cash equivalents. The net debt to EBITDA
ratio is calculated by dividing net debt at the end of the quarter by EBITDA for
the last twelve months. All of the above items are derived from generally
accepted accounting principles in Mexico. EBITDA and Free Cash Flow (as defined
above) are presented herein because CEMEX believes that they are widely accepted
as financial indicators of CEMEX's ability to internally fund capital
expenditures and service or incur debt. EBITDA and Free Cash Flow should not be
considered as indicators of CEMEX's financial performance, as alternatives to
cash flow, as measures of liquidity or as being comparable to other similarly
titled measures of other companies.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de
C.V. has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
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CEMEX,
S.A.B. de C.V.
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(Registrant)
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Date:
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March
14, 2008
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By:
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/s/
Rafael Garza
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Name: Rafael
Garza
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Title: Chief
Comptroller
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