Cemex sees higher revenues despite US downturn

Cemex sees higher revenues despite US downturn
Published: 19 June 2007

Cemex said it sees second-quarter revenues of above US$4.9bn, about six per cent more than in the same period a year ago.  
 
Cemex  also forecast quarterly earnings before interest, taxes, depreciation and amortization, or EBITDA, of $1.12bn, a two per cent decrease on the year-ago period.  
 
The company reiterated an EBITDA forecast of $4.3bn for all of 2007, compared to $4.1bn in 2006 and $3.6bn in 2005.  
 
That is despite a downturn in its top U.S. market, where higher interest rates and the failure of some borrowers to repay their mortgages have slowed real estate construction.  
 
In the United States, the company sees an 11 per cent fall in its second-quarter cement sales volume and a 22 per cent slide in ready-mix concrete sales volume.  
 
For all of 2007, Cemex sees its US cement sales volume falling four per cent compared to 2006, a greater decrease than the company predicted in March due to lower demand from the residential construction sector.  
 
"The results for the quarter reflect the ongoing correction in the residential sector in the United States, which is partially mitigated by a strong operating performance in most of our other markets," Chief Financial Officer Rodrigo Trevino said.  
 
Cemex, which is based in the northern Mexican city of Monterrey, sees its Mexican cement volumes rising 3 percent in the quarter and its concrete volumes climbing 10 percent.