Cemex expects to report a second quarter operating income of US$840m, a 12 per cent increase over the same quarter in 2005, according to a company press release. "We are increasingly confident that we will exceed our target Ebitda of US$4bn [for the year] and free cash flow after maintenance capital expenditures of US$2.5bn," CFO Rodrigo Treviño said.
The expected Q2 increase in operating income comes as the result of increased sales in Mexico and Spain, which Cemex expects to outweigh decreased sales in Great Britain and the US.
For the second quarter, Cemex believes cement and ready-mix sales volumes in Mexico will increase five per cent and 20 per cent, respectively, when compared with 2Q05. It expects cement and ready-mix sales to improve six per cent and 24 per cent, respectively, in Spain.
The company also believes its cement and ready-mix sales volumes in the US will decrease three per cent and 24 per cent, respectively - mainly due to a softer residential construction sector and bad weather conditions in western states - and will fall nine per cent and three per cent, respectively, in the UK.