Lorenzo Zambrano says he’s confident Cemex will meet or beat its goal of lowering debt this year.
At a press conference, Zambrano said the sale of non-core assets would include some that were acquired along with RMC Group (RMC) of the UK, which Cemex bought for US$5.8bn in cash and debt.
The RMC acquisition raised Cemex’s debt to US$10.44bn, or 3.2 times 12-months trailing earnings before interest, taxes, depreciation and amortisation, or EBITDA, at the end of March.
Zambrano said Cemex doesn’t need to sell assets to meet the goal of lowering debt to 2.7 times EBITDA by the end of 2005, and that the company is likely to exceed its goal.
He reiterated that Cemex expects sales this year of US$15.8bn, and EBITDA of US$3.5bn. That includes 10 months of RMC results, which Cemex began consolidating in March.