Mexico's Cemex resumes forecasts after 3 years, shares up
MEXICO CITY |
MEXICO CITY (Reuters) - Mexican cement maker Cemex issued its first results guidance in more than three years on Thursday, forecasting higher earnings before interest, taxes, depreciation and amortization, sending its shares up 4.2 percent in the local bourse to levels not since January 2011.
Cemex (CMXCPO.MX), which last provided a results outlook in February 2009, recently wrapped up a $7.2 billion refinancing that gave it much needed breathing room to push back looming debt payments for up to four years.
The Monterrey-based company was swamped by the 2008 U.S. housing meltdown shortly after paying out $16 billion to buy Australian peer Rinker. It has been working its way out of deep debt obligations for the past three years.
Cemex said it expects third-quarter EBITDA to rise 9 percent from a year earlier, in dollar terms, but expects a 2 percent decline in sales.
The company is due to report full quarterly results later this month. Its shares rose 4.2 percent 11.39 pesos. Its New York-traded shares (CX.N) gained 4.32 percent to $8.93.
As part of the refinancing agreement with lenders, the company, which has operations in more than 50 countries, swapped debt and has committed to pay down $1 billion in March 2013. It also revised some financial covenants.
Cemex is also close to listing its Cemex Latam Holdings unit in Colombia, a deal that could bring in $750 million to $1 billion to help it meet the payment next March.
(Reporting By Cyntia Barrera, additional reproting by Michael O'Boyle; editing by John Wallace; Editing by Gerald E. McCormick)
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