Cemex sees net loss in 1Q10

Cemex sees net loss in 1Q10
Published: 25 March 2010

Cemex said on Wednesday it sees a likely consolidated net loss in the first quarter of 2010 versus the same period a year ago, hit by the global slump and bad weather in the United States and Europe.

In a filing with the US Securities and Exchange Commission, Cemex said the global economic crisis continued to hurt demand for its cement across its markets. Cemex also blamed severe storms in its key European and U.S. markets for dampening construction in a always difficult winter season.

"It is likely that we will report a consolidated net loss in the first quarter of 2010," the company said. Cemex, which operates in more than 50 countries, is due to report its earnings in the second half of April but has not set a date for the release.

Shares in Cemex fell sharply on Wednesday as investors worried about the near-term outlook for the company. Analysts also say a $500 million convertible bond offer could dilute an already weak share price, while the Mexican peso weakened on Wednesday and sales of newly built U.S. homes fell for a fourth straight month in February.

"Fears about dilution, the (first-quarter) losses, the weakening Mexican peso and U.S. housing data all came together," said Carlos Hermosillo, an analyst at Vector brokerage.