CEMEX makes significant progress towards investment grade
PRESS RELEASE
CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE: CX) announced today significant progress in its initiatives to bolster the company's path to regain an investment-grade capital structure.
These initiatives include several transactions and efforts intended to strengthen CEMEX's EBITDA and cash flow generation as well as to reduce debt, which are expected to dampen the effects of continued market volatility. CEMEX's key financial and strategic milestones are the following:
- Year to date, CEMEX has announced divestments of close to U.S.$2 billion, about half of which have been completed and the rest are expected to close by early next year. As such, CEMEX will be able to meet its U.S.$1.5 to U.S.$2 billion 2017 asset disposal target ahead of schedule.
- With the proceeds from asset divestments, as well as free cash flow generation and cash on hand, CEMEX has reduced total debt plus perpetual securities by more than U.S.$2 billion year to date, in line with this year's target. Taking into account this reduction in debt, as well as expected additional debt payments before year end, CEMEX is on target to reach its leverage ratio target of about 4.25 times by the end of this year.
- With the proceeds from pending asset divestments, as well as continued favorable free cash flow generation, CEMEX is also well on track to reach its debt reduction target of U.S.$3 to U.S.$3.5 billion by the end of 2017.
- CEMEX is also currently on course to reach its initiatives to increase free-cash-flow by U.S.$670 million by the end of this year. In addition, the company expects to meet its cost-and-expense reduction target of U.S.$150 million which has contributed to CEMEX's improvement in profitability during 2016.
Furthermore, CEMEX has increased its flexibility to optimize its use of proceeds from asset sales and free cash flow by enlarging its revolving credit facility under its facilities agreement, and now has no significant maturities until March 2018.
"Despite challenging market conditions, working on the variables we can control has allowed us to be well on our way to significantly strengthen our capital structure, and we expect to continue to be able to do so in the near future," said Fernando A. Gonzalez, CEO of CEMEX.
CEMEX is a global building materials company that provides high quality products and reliable service to customers and communities in more than 50 countries. Celebrating its 110th anniversary, CEMEX has a rich history of improving the well-being of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future.
For more information on CEMEX, please 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 herein described to be materially different from those expressed or implied in this release, including not consummating pending divestitures and not achieving the targets, goals, and milestones described in this press release. 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.
CEMEX Contact Information
Media Relations Jorge Pérez +52 (81) 8888-4334 | Investor Relations Eduardo Rendón +52 (81) 8888-4256 | Analyst Relations Lucy Rodriguez +1 (212) 317-6007 |
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Infrastructure (Mexico)
The Mexican government will deliver more than 500 road infrastructure works with a broad social focus: Nuño Lara
More than 8 thousand km of roads and paths have been built, which is equivalent to traveling a distance from Chetumal to Alaska.
FINSA announces the first closing of its new FINSA V Investment Fund of up to US$600mn that will strengthen the Mex...
FINSA announces the closing of the first stage of the FINSA V Investment Fund for a total of US$340mn on December 29, 2023 with a term of 10 years.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Infrastructure (Mexico)
Get critical information about thousands of Infrastructure projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: 0910 Cruise Terminal in Ensenada, Baja California
- Current stage:
- Updated:
1 year ago
- Project: Remodeling Luis Donaldo Colosio Boulevard
- Current stage:
- Updated:
2 weeks ago
- Project: Cancún Airport Junction Modernization
- Current stage:
- Updated:
2 weeks ago
- Project: Mi Macro Periférico Expansion
- Current stage:
- Updated:
2 weeks ago
- Project: Expansion and remodeling of the Mérida international airport (Lic. Manuel Crescencio Rejón y Alcalá airport)
- Current stage:
- Updated:
2 weeks ago
- Project: Durango - Mazatlán Railway
- Current stage:
- Updated:
2 weeks ago
- Project: University Hospital Campus II Autonomous University of Chihuahua
- Current stage:
- Updated:
3 weeks ago
- Project: La Gloria - Colombia Highway
- Current stage:
- Updated:
3 weeks ago
- Project: Trolleybus Chalco - Santa Martha
- Current stage:
- Updated:
3 weeks ago
- Project: Valleys - Tamazunchale Highway Modernization
- Current stage:
- Updated:
3 weeks ago
Other companies in: Infrastructure (Mexico)
Get critical information about thousands of Infrastructure companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Ingeniería y Gestión Hídrica S.C
- Company: Acces Ingeniería, S.A. de C.V.
- Company: Haskell Mexico
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: MSI Grupo
- Company: DR51 Construrentas S.A. de C.V.