Cemex sees 2004 EBITDA up 11%

Cemex sees 2004 EBITDA up 11%
Published: 02 July 2004

Cemex expects an 11% surge in its earnings before interest, taxes, depreciation and amortization this year as the global economic growth picks up and cost-cutting initiatives sent profit margins higher.  In a news statement, Cemex,said it announced during its annual analyst and investor meeting in Norwalk, Connecticut Thursday that its EBITDA will likely total $2.35bn this year. Revenue is expected to reach close to $7.5bn and free cash flow to total $1.35bn. Operating income is projected at $1.7bn.

"This year is shaping up to be a better year for Cemex, reflecting the gathering global economic momentum which is translating into robust top line growth in most of our markets and higher profit margins resulting from our investments in cost-saving initiatives," chief executive officer Lorenzo Zambrano said in a statement.  Cemex chief financial officer Rodrigo Trevino also said the Monterrey-based company has taken a new syndicated bank loan of $800 million and is using some of its free cash flow to prepay debt and reduce borrowing costs.

Trevino said Cemex has terminated a $300m US commercial paper program ahead of scheduled and is prepaying $550m of a $1.5bn loan denominated in several currencies.