Cemex says first quarter looks steady
One of the world’s largest cement producers, Monterrey, Mexico-based Cemex, has said it expects a first quarter in line with expectations despite a drop in U.S. home building. The company expects to see “in excess” of $5.3 billion in sales in the first quarter, up 24 percent compared with last year.
“Despite continued weakness in some of our markets, our fundamentals remain unchanged,” said Rodrigo Trevino, CFO for Cemex. “This is also despite the U.S. residential sector downturn and softening demand in markets like Spain and the U.K. Our geographic diversification continues to mitigate the impact of individual countries in our portfolio.”
Decreases in ready-mix sales particularly are expected due to weakness in the residential sector, the company said, “which makes comparisons in the current quarter on a like-to-like basis unfavorable versus prior year.” In addition, adverse weather conditions in many regions of the country, including Florida, California, Arizona and Nevada, affected Cemex’s sales during the quarter, according to the company.
Cemex provides residential and commercial building materials in 50 countries worldwide.