Mexico's Cemex seen posting narrower quarterly loss

Cemex is expected to cut its first-quarter losses by more than half from a year ago, helped by higher sales and a strong share price gain during the period.

A Reuters poll among seven analysts showed Cemex would likely post a net loss of US$112m in the January-to-March period, compared with a loss of US$276m in the 1Q11.

Quarterly sales are expected to have grown 3.7% due to stronger demand from the United States, Cemex's top market outside Mexico, and higher prices in that market. Europe, Colombia and the Caribbean operations are also likely to post good results.

"Cemex benefits from an early start of the construction season in developed markets thanks to a mild winter," HSBC said in a report.

Analysts also expect Cemex to realise some gains from trading in derivatives linked to its stock performance. The company's shares jumped about 38% in the first quarter.

Despite stronger revenue and the lift from derivatives, heavy debt continues to haunt Cemex. Cemex is due to report its results before markets open on Thursday.