Cement Americas

APR 2019

Cement Americas provides comprehensive coverage of the North and South American cement markets from raw material extraction to delivery and tranportation to end user.

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4 CEMENT AMERICAS • Spring 2019 • www.cementamericas.com CEMENTSCOPE "The changes are part of long-term succession planning," said HeidelbergCement Supervisory Board Chairman Fritz-Jürgen Heckmann. "Since assuming office in 2005, Dr. Scheifele has decisively shaped the group and successfully moved it into new dimensions both operationally and stra- tegically. By introducing effective management process- es and a lean organization, he significantly increased the competitiveness of HeidelbergCement, propelling us to the forefront of the industry. He has also overseen expansion of our geographic footprint and the scope of our core activ- ities and made HeidelbergCement the leading vertically integrated building materials company globally." Other transitions noted in the succession plan: In August 2019, Ernest Jelito, currently head of Poland activities, will succeed Dr. Albert Scheuer as member of the managing board in charge of the Northern and Eastern Europe-Central Asia group. Chris Ward, whose currently responsible for the Canada region, will be promoted to the managing board and take on responsibility for North America from Morrish, effective Feb. 1, 2020. The supervisory board has extended the contract of Chief Financial Officer Dr. Lorenz Näger until May 2022 and appointed him as deputy chairman of the managing board effective Feb. 1, 2020 Cemex Net Sales Increase 6 Percent in 2018 Cemex announced that, on a like-to-like basis for the ongo- ing operations and adjusting for currency fluctuations, con- solidated net sales increased by 4 percent during the fourth quarter of 2018 to $3.5 billion, and increased 6 percent for the full-year 2018 to $14.4 billion versus the comparable periods in 2017. Operating EBITDA, also on a like-to-like basis, remained flat during the fourth quarter of 2018 at $604 million and increased by 1 percent for the full year to $2.6 billion versus 2017. The increase in quarterly consolidated net sales on a like- to-like basis was due to higher prices of the company's products, in local currency terms in all of its regions, as well as higher volumes mainly in the ready-mix and aggregates businesses in Mexico and the United States. "We are pleased with our 6 percent top-line growth during 2018, supported by higher consolidated volumes and pric- es in our three core products. Operating EBITDA grew by 1 percent on a like-to-like basis in this period," said Fernando A. Gonzalez, chief executive officer of Cemex. Gonzalez continued, "During 2018, we generated more than $900 million in free cash flow after maintenance capex, with a strong EBITDA-to-free-cash-flow conver- sion rate, which allowed us to reduce our total debt by 8 percent, or close to $1 billion. We also made significant advances under our 'A Stronger Cemex' plan during the sec- ond half of last year and are on track to achieve our 2019 and 2020 targets under this program." Net sales in operations in Mexico, on a like-to-like basis, increased 5 percent in the fourth quarter of 2018 to $776 million. Operating EBITDA, on a like-to-like basis remained flat at $265 million in the quarter, versus the prior-year period. Cemex's operations in the United States reported net sales of $905 million in the fourth quarter of 2018, an increase of 8 percent on a like-to-like basis from the same period in 2017. Operating EBITDA increased by 6 percent on a like- to-like basis to US$168 million versus prior-year period. Net sales in operations in South, Central America and the Caribbean were $425 million during the fourth quarter of 2018, a decline of 6 percent on a like-to-like basis over the same period of 2017. Operating EBITDA decreased by 8 percent on a like-to-like basis to $93 million in the fourth quarter of 2018, from $105 million in the pri- or-year period. Executive Order Prioritizes Domestic Materials for Infrastructure Projects President Donald Trump signed an executive order late last month promoting – and potentially requiring – expanded use of U.S.-made materials including cement on federally-fi- nanced infrastructure projects. The directive strengthens the administration's "Buy American, Hire American" stance. "We want American roads, bridges and railways and every- thing else to be built with American iron, American steel,

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