Cemex reverts losses betting on rates

Cemex reverts losses betting on rates
Published: 07 September 2005

Rodrigo Treviño, Finance manager at Cemex S.A., had losses of US$467m  two years ago, because of betting on an interest rate rise in the United Sates. Currently, the company is reverting that loss with the same strategy.

The official actually increased the profits of the company in US$370m during the last three quarters, by using interest rate swap contracts that helped to reduce Cemex’s financing costs.This recovery made the securities of the world’s third cement producer to raise 36 per cent this year.