Cemex aims for 4Q04 Ebitda of US$560m

Cemex plans to report more than US$560m in Ebitda fourth quarter this year, which would represent a 10% jump over the same quarter last year, Cemex said in a statement. 

Cemex expects operating income to reach US$390m and revenue to total more than US$1.9bn during the same 2004 period, while 4Q03 results came in at US$342mn for operating income and US$1.8bn for consolidated net sales. 

For the full year, the company aims for Ebitda of US$2.5bn and revenue of US$8bn, while 2003 figures totaled US$2.11bn for Ebitda and US$7.16bn for net sales. 

Cemex Mexico expects its 4Q04 gray cement volumes to grow 3% over the same year-ago quarter and 2.5% for the full year versus 2003, thanks to continued cement demand in the public works and housing sectors. 

"We expect to exceed our 2004 Ebitda guidance and to achieve our free cash flow target of US$1.4bn. For 2005, our existing operations are expected to generate organic Ebitda growth in the mid single-digit range" not including consolidation and synergies of UK-based cement maker RMC, CFO Rodrigo Trevio said. 

Cemex aims to make effective its US$5.8bn acquisition bid of RMC on January 12, 2005. In the meantime, the Mexican company is in the process of selling off non-vital assets. Brazilian conglomerate Grupo Votorantim signed a letter of intent to buy two US plants from Cemex for US$400mn. 

Experts believe Cemex will continue selling assets and use the cash flow generated to reduce its debt.