Cemex sees slow US economic recovery

Cemex sees slow US economic recovery
Published: 22 September 2010

Cemex said demand in the United States is not growing as fast as expected but that it would maintain its 2010 growth projections for now.

Fernando Gonzalez, Cemex’s executive vice president for planning and finance, told reporters on Tuesday that the US market has been growing since March.

"We had hoped .... for a relatively quick recovery but that is not happening. So the estimates that called for double-digit growth in 2010, 2011 and 2012 have been cut somewhat but are still positive," he said.

Cemex shares have faced selling pressure in recent weeks as investors reassess the company’s prospects amid a slower-than-anticipated economic recovery in the United States, its largest market.
The company has twice cut its goal for growing its earnings before interest, taxes, depreciation and amortization (EBITDA) this year. Since July Cemex has forecast EBITDA of US$2.65bn for 2010, down from its original projection of US$2.9bn.

Gonzalez said Cemex was not considering a further reduction in its EBITDA goal at this time.