Cemex expects to increase US sales after purchase of Australia’s Rinker Group

Cemex expects to increase US sales after purchase of Australia’s Rinker Group
Published: 23 July 2007

Cemex says it is looking to increase its U.S. sales on the back of its recent purchase of the Australian Rinker Group.

"Rinker will enhance our position as one of the world’s largest building materials companies, reduce our cash flow volatility and improve our capital structure," Hector Medina, Cemex’s executive vice-president of planning and finance, remarked to AP during a conference call Friday.

Medina said he expected US cement volume to grow for the whole year in the "mid-single-digit range compared to operations last year", adding that the company is looking to an increase of 20 per cent increase in ready-mix volumes in the US in 2007 and a 100 per cent increase in aggregate volumes.

Cemex last month lowered its prediction for sales in the struggling U.S. predicting an 11 per cent drop in cement sales for the quarter and a four per cent drop for the year.