... de C.V.'s (Elementia) cash flow and profitability are supported by a diversified revenue base, wide distribution network and product offerings, and the contribution of its cement division, its highest-margin business. In addition, in its metal segment, the company applies a cost-plus margin formula, allowing it to pass through metal price variations to end customers. High Leverage Constrains Rating: Elementia's leverage has been historically volatile, partly due to greenfield investments in the company's cement division as well as asset acquisitions and dispositions within the company's business portfolio. During the last eight quarters, Elementia's net leverage on a LTM basis has fluctuated between a peak of 3.4x in September 2013 and a low of 1.5x in September 2014. As of March 2015, net leverage was 2.7x, above management's long-term target of 2.0x, primarily due to the purchase of Lafarge assets. Negative FCF in 2015¡2016: During 2014,...
