Cemex forecasts an EBITDA of some US$3,600m for 2005

Cemex forecasts an EBITDA of some US$3,600m for 2005
Published: 16 December 2005

In announcing its expectations for the final quarter of 2005, Cemex is indicating a turnover for the full year of in excess of US$15,200m.  This includes RMC Group for 10 months and represents an increase of around 88% on what the group achieved in 2004. The management expects the EBITDA to rise by some 42% to approximately US$3,600m, based on forecasts of increases of EBITDA and turnover in the fourth quarter of some 63% and 95% respectively. For 2006, the group is suggesting that the EBITDA will be in the region of US$4,00m, as the benefits from the acquisition of RMC flow through and more than outweigh the expected increase in transport costs.
 
Cement deliveries in Mexico have improved and are showing a 2% increase in the fourth quarter, compared with a 1% decline during the period to the end of September, helped by increased demand from the civil engineering industry.  In the United States, cement shipments are expected to be ahead by some 5%, in line with the year to date, which represents a 7% increase on an underlying basis, as two cement plants were sold to Votorantim and one US cement plant was added with RMC. 
 
In Spain, group cement volumes are expected to show a 3% advance over the full year, though fourth quarter shipments are expected to be slightly below the exceptionally strong level seen in the final quarter of last year.  Underlying British cement deliveries are expected to be down by 3% for the year and by some 5% in the fourth quarter, largely reflecting lower spending by the public sector.