With the continuing weakening of Mexican building activity, Cemex is expecting its domestic cement deliveries to decline by around 5% this year in spite of forecasting an increase in civil engineering activity. Thanks to the better outlook for infrastructure spending, ready-mixed concrete deliveries are expected to decline by just 2%.
Without assuming any effect that the recently announced public spending programme in the United States might have later in the year, Cemex’ US cement deliveries are forecast by the group to decline by approximately 14%, with a similar percentage reduction being expected for aggregates, while ready-mixed concrete deliveries are expected to be slightly worse hit and suffer a 16% volume reduction.
In Europe, cement shipments are expected to fall by around 20% in Spain, by 16% in Great Britain and by 15% in Germany, while ready-mixed concrete volumes are forecast to drop by 27% in Spain, by 14% in Great Britain and by 12% in France. Aggregates deliveries should perform slightly better with declines of 16% in Spain and 10% in Great Britain.
In Australia, volumes are forecast to decline by around 10% in ready-mixed concrete deliveries and by some 13% in aggregates. In cement, Cemex is expecting around a 5% drop in Colombia, but a 1% improvement in Egypt. In total, the 2009 EBITDA is currently forecast to emerge at around US$3,600m, suggesting a 17% reduction over last year. During this year, Cemex hopes to reduce its net debt by around 20% to some US$14,300m