On April 23, cement producer Cemex (NYSE:CX) released first-quarter earnings for the period ended March 31.
- Excluding one-time antidumping settlement proceeds from 2006, profits rose 12%.
- While strong sales continue in Mexican and foreign markets, Cemex saw a 20% decrease in net sales in the United States.
- Cemex predicts a tough year, as inventory is beginning to build up from diminishing demand because of the subprime housing market.
- The Motley Fool CAPS community has a bullish outlook for the cement industry; they rate both Cemex and competitor Lafarge S.A. (NYSE:LR) a full five stars.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Sales |
$4,301.7 |
$3,928.7 |
9.5% |
|
Net Profit |
$400.0 |
$505.0 |
(20.8%) |
|
EPS |
$0.55 |
$0.72 |
(23.6%) |
|
Diluted Shares |
733.0 |
704.9 |
4.0% |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
34.8% |
36.0% |
(1.2) |
|
Operating Margin |
13.0% |
14.2% |
(1.2) |
|
Net Margin |
9.3% |
12.9% |
(3.6) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,187.6 |
$687.8 |
72.7% |
|
Accounts Rec. |
$1,500.5 |
$1,569.8 |
(4.4%) |
|
Inventory |
$1,322.7 |
$1,128.2 |
17.2% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Long-Term Debt |
$5,114 |
$8,463 |
(39.6%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$362 |
$505 |
(28.3%) |
|
Capital Expenditures |
$297 |
$179 |
65.9% |
|
Free Cash Flow |
$65 |
$326 |
(80.1%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
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