CEMEX - 2Q16 RESULTS

Mexican cement maker Cemex has published solid 2Q16 results, reporting its highest Q2 EBITDA since 2008. The story has been the same for many quarters now as Cemex continues its operational recovery on the back of favorable trends in its two major markets: Mexico (22% of revenues; 39% of EBITDA) and the US (28% of revenues; 22% of EBITDA). In Q2, LFL sales rose by 6% to USD 3.68bn driven by higher sales volumes and increased selling prices for the three core products. EBITDA increased by 16% on a LFL basis, or 6% to USD 771m (margin: +130 bps to 19.6%) despite a USD -69m FX impact (still suffering from the depreciation of the MXN, EUR and COP against the USD). Margins benefited from cost reduction initiatives, lower energy costs and operating leverage.​