UPDATE 2-Mexico’s Cemex sees EBITDA up 50 pct after RMC buy
Mexico’s Cemex, the world’s No. 3 cement maker, said on Monday it saw third-quarter earnings before interest, depreciation and amortization
(EBITDA) close to $1 billion, up 50 percent from a year earlier on higher sales.
Cemex (CX.N: Quote, Profile, Research) (CEMEXCPO.MX: Quote, Profile, Research) said revenues would reach $4.4 billion in the July-September period, up 115 percent and largely boosted by income from the $5.8 billion acquisition of Britain’s RMC Group, the world’s largest ready-mix concrete maker.
Cemex did not mention any impact of the expected massive reconstruction program in the United States from the devastation caused by Hurricane Katrina, which has pushed up its stock price in recent sessions.
Analysts expect that the Mexican company’s sales and earnings in future quarters will be boosted by Katrina, with roads and housing needed to be rebuilt after the storm and Cemex in an ideal position as the top U.S. cement maker and concrete player.
Cemex shares closed down 1.29 percent on Monday at 54.24 pesos, not far from 12-month highs. Its American Depositary Receipts (ADSs) dropped 1.2 percent to $50.86.
“Revenues and EBITDA (for the third quarter) are expected to be in line with those of the second quarter 2005,” said Cemex, giving guidance for its upcoming third-quarter earnings.
“Our strong year to date performance puts us on track to achieve our stated full-year EBITDA guidance and to increase our estimates for free cash flow, which is now expected at $1.9 billion in 2005,” CFO Rodrigo Trevino said in a statement.
Trevino said Cemex expected to reach its so-called “cruising speed” ratio of 2.7 times net debt to EBITDA by the end of the quarter and about 2.5 times by the end of the year.
Reaching that ratio would be well ahead of schedule and could allow Cemex to go back on the acquisition trail again following a period concentrated on buying back debt in the wake of the RMC purchase, which halted the decade-long spending spree that made it a global powerhouse.
Domestic sales volumes are expected to be flat in the third quarter and sales in the United States are expected to increase 2 percent in the July-September period.
In Spain, cement volumes are expected to be flat and in Britain cement volumes are seen down 3 percent, from a decline in spending in infrastructure, maintenance and repairs.
Cemex said its derivatives position has improved $281 million since the end of June and that more than 95 percent of the improvement will be on its third-quarter income statement.
Separately, Cemex said it intends to make a global public offering of 27 million ADSs, plus up to another 3.99 million ADSs to cover over-allotments.
“This transaction will not increase the number of shares outstanding and thus will not dilute existing shareholders,” Cemex said.
The shares are being offered in connection with the unwinding of several forward contracts between several banks and Cemex, the company said.
Source: today.reuters.com
Mexico's Cemex sees Q4 EBITDA up 63 pct
Mexico's Cemex, the world's third biggest cement maker, expects a 63 percent rise in fourth-quarter earnings before interest, tax, depreciation and amortization to $950 million after a major acquisition boosted sales, the company said on Friday.
Cemex (CX.N: Quote, Profile, Research) (CEMEXCPO.MX: Quote, Profile, Research) said revenues would be above $3.9 billion in the October-December period, up 95 percent following the $5.8 billion purchase of Britain's RMC Group, the world's largest ready-mix concrete producer.
The acquisition of RMC, the biggest ever by a Mexican company, doubled Cemex's revenue base and handed it new markets in
UPDATE 3-Mexico's Cemex net profit almost doubles on RMC buy
Mexico's Cemex (CX.N: Quote, Profile, Research), the world's No. 3 cement maker, almost doubled its net profit in the third quarter from higher sales after the consolidation of its acquisition of Britain's ready-mix concrete giant RMC.
Cemex (CEMEXCPO.MX: Quote, Profile, Research) said on Friday its July-September net profit was $675 million, lower than market forecasts, but up from $361 million a year earlier.
A Reuters' survey of six analysts had yielded an average forecast that net profit for Cemex, which operates in more than 50 countries, would come in at $783
UPDATE 3-Mexico's Cemex net profit almost doubles on RMC buy
Mexico's Cemex (CX.N: Quote, Profile, Research), the world's No. 3 cement maker, almost doubled its net profit in the third quarter from higher sales after the consolidation of its acquisition of Britain's ready-mix concrete giant RMC.
Cemex (CEMEXCPO.MX: Quote, Profile, Research) said on Friday its July-September net profit was $675 million, lower than market forecasts, but up from $361 million a year earlier.
A Reuters' survey of six analysts had yielded an average forecast that net profit for Cemex, which operates in more than 50 countries, would come in at $783
RMC acquisition to boost profit for Mexico's Cemex
Mexico's Cemex, the
world's No. 3 cement maker, is expected to almost triple its
second-quarter net profit from the takeover of Britain's ready-
mix concrete producer RMC and from foreign exchange gains.
A Reuters survey of six analysts forecast, on average, that
Cemex (CX.N: Quote, Profile, Research) (CEMEXCPO.MX: Quote, Profile, Research) would report a net profit of $634
million for the April-to-June period, up from $247 million in
the same period a year earlier.
In March Cemex bought RMC, the world's largest ready-mix
concrete maker, for $5.8 billion, which strengthened its
business base in Europe and doubled sales.
"Above and beyond
Mexico sees growth slowing to 3.5 pct in 2007
Mexicos economic growth will slow to an insufficient rate of about 3.5 percent next year, the central bank said on Monday, adding that increased productivity and competitiveness were vital to job creation.
Guillermo Guemez, the central banks deputy governor and a voting member of its five-man monetary policy board, said a slowdown in the United States and the wider global economy would affect Mexicos growth under President-elect Felipe Calderon, who begins his six-year term on Dec. 1.
Mexican gross domestic product expanded 5.1 percent in the first half of this year and is
Reuters Summit-Mexico's Pemex sees output flat to 2007
Mexican state oil monopoly Pemex sees crude oil production staying roughly flat this year and next, Chief Financial Officer Juan Jose Suarez said Friday.
Suarez said he saw Pemex's 2007 crude oil output averaging 3.45 million barrels per day, up only a whisker from estimated average production of 3.42 million bpd this year.
"It should be around 3.45 million," he told the Reuters Latin America Investment Summit in Mexico City.
Pemex, one of the top three suppliers of crude oil to the United States, saw its oil production dip to 3.33 million bpd in 2005, partly
UPDATE 2-US cuts duty rate on Mexico cement maker Cemex
The United States said on Thursday it was cutting anti-dumping duties on Mexico's leading cement maker, a routine administrative move that could proceed a deal soon to end a 15-year fight over cement trade.
The U.S. construction industry has long battled to remove the duty, which they claim has contributed to shortages of cement in many U.S. states. That effort picked up steam after Hurricane Katrina rampaged across the U.S. Gulf Coast.
U.S. and Mexican negotiators held their latest round of the talks on the issue earlier this week in Mexico City
Mexico's Cemex prices $1.3 billion share offer
Mexico's Cemex, the world's No. 3 cement maker, said late on Tuesday it priced a $1.3 billion offer of American Depositary Receipts at $49.50 per receipt.
Part of the offer was placed in local shares, 10 of which make up one American Depositary Receipt, or ADR. The equivalent offer price in local shares was 53.89 pesos per share.
Cemex's ADRs (CX.N: Quote, Profile, Research) closed on Tuesday at $50.14 while its Mexico-traded stock (CEMEXCPO.MX: Quote, Profile, Research) finished at 54.44 pesos.
Source: today.reuters.com
RMC buy to double Mexico's Cemex net profit
Mexico's Cemex, the world's No. 3 cement maker, is seen doubling its third-quarter net profit from higher sales in the consolidation of Britain's ready-mix concrete giant RMC and financial gains.
A Reuters survey of six analysts forecast, on average, a July-September net profit for Cemex of $783 million, up 117 percent from a year earlier.
The survey forecast that Cemex's (CX.N: Quote, Profile, Research) (CEMEXCPO.MX: Quote, Profile, Research)
revenues will jump 114 percent in the quarter, largely boosted by income from its $5.8 billion acquisition of RMC, the world's largest ready-mix concrete maker.
Financial gains from
UPDATE 1-Mexico central bank sees 2006 growth near 3.5 pct
Mexico's central bank governor Guillermo Ortiz said on Thursday the economy will grow close to 3.5 percent this year, a lukewarm performance with presidential elections looming in July.
Ortiz said he expected gross domestic product to rise between 3 and 3.5 percent. "It looks more likely that we will be in the upper end of the range," he told reporters.
President Vicente Fox pledged before taking office in 2000 to deliver growth rates approaching 7 percent a year, but his proposals for tax, labor and energy reforms have been blocked by the opposition-dominated
