HeidelbergCement shares down as US property sales fall
Shares in HeidelbergCement are down 2.3 per cent after U.S. property data shows that sales of new homes fell to the lowest level ever in May, overshadowing the outlook for Germany’s construction industry.
The data is a disappointment for recovery hopes in the U.S. cement market," one trader says, adding that "at first glance, the impact on 2010 EBITDA should be low single-digit percentage."
Traders also point towards an announcement by the German umbrella federation of the construction trade, which warns that the industry expects to suffer when the government-funded economic stimulus package runs out next year. WestLB has cut HeidelbergCement’s rating to "neutral" from "buy".
