CEMEX Says Able To Meet Its 2017 Asset Disposal Target Ahead Of Schedule

(RTTNews) - CEMEX S.A.B. de C.V. (CX) said that it will be able to meet its US$1.5 billion to US$2 billion 2017 asset disposal target ahead of schedule. Year to date, CEMEX has announced divestments of close to US$2 billion, about half of which have been completed and the rest are expected to close by early next year.

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 US$2 billion year to date, in line with this year's target.

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 US$670 million by the end of this year. In addition, the company expects to meet its cost-and-expense reduction target of US$150 million which has contributed to CEMEX's improvement in profitability during 2016.

In addition, 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.