In light of the current extraordinary market conditions, CEMEX S.A.B. de
C.V. (NYSE: CX) would like to take this opportunity to assure the market
that our business model continues to be intact and the capital structure
of the company remains unchanged. We wish to reaffirm to the market that
we have slightly exceeded our guidance for third quarter and that we
remain in compliance at the end of the third quarter with our financial
covenant test. As of September 30th, 2008, our
net debt to EBITDA ratio was reduced to 3.4:1, due to a significant
reduction in net debt during the quarter from about US$17.6 billion to
about US$16.4 billion.
With regard to our derivatives strategy, we continue to employ
derivatives only to execute our financing plan and to partially hedge
our capital investment in our foreign subsidiaries. The mark to market
of our derivatives position as of September 30th,
2008 was a positive US$100 million for all of our derivatives including
our perpetual securities. This represents a US$400 million decline from
the date of our mid quarter guidance on September 11th,
2008. The decline from September 11th, 2008 is
primarily explained by the realization of close to US$300 million in
gains in our capital hedge program which was used primarily to reduce
net debt. Currently, and as a result of the recent high volatility in
the foreign exchange and equity capital markets, the aggregate mark to
market is approximately negative US$500 million (including our perpetual
securities). We continue to have cash on hand to meet all of our
operational and financial requirements. We will be addressing all of
these issues in more detail in our third quarter conference call on
Wednesday, October 22nd, 2008.
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.
CEMEX
Media Relations:
Jorge Pérez,
(52-81) 8888-4334
or
Investor Relations:
Eduardo
Rendón, (52-81) 8888-4256
or
Analyst
Relations:
Luis Garza, (52-81) 8888-4136
