* WHAT: Cement maker Cemex second-quarter results
* WHEN: Friday, July 22
* REUTERS FORECAST: net loss of $64 mln
By Gabriela Lopez
MONTERREY, Mexico, July 19 Mexican cement maker
Cemex is expected to post a smaller second-quarter net loss as
revenue gets a lift from higher prices, although concerns over
the company's debt situation linger.
Monterrey-based Cemex (CX.N) (CMXCPO.MX) will likely post a
$64 million loss in the three-month period ending in June,
compared to a $306 million loss in the second quarter of last
year, according to a Reuters poll of seven analysts.
"In our opinion, the weak results in the second quarter had
already been priced in by the market in the face of the slow
recovery in Europe and weak housing indicators in the United
States," said Santander analyst Gonzalo Fernandez.
Revenue is seen rising 8.6 percent to $4.09 billion on a
combination of higher prices and a better exchange rate of the
peso, the pound and the euro against the dollar during the
However, sales volumes in the United States and Europe, two
of its key markets, may have declined.
With operations in more than 50 countries, Cemex is seen
posting only slight increases in operating results pressured by
weak demand and higher energy costs, dampening the company's
ability to generate enough cash to pay its heavy debt burden.
Cemex has had to refinance its debt on several occasions to
avoid interest payments from climbing further.
So far this year, Cemex has placed $4.1 billion in bonds
and convertibles, and analysts expect the company to continue
tapping international debt markets before $8.3 billion in debt
comes due in 2014.
Following is a table with the average expectations provided
by analysts. All figures in dollars.
2011 2010 PERCENTAGE
APRIL-JUNE APRIL-JUNE CHANGE
Revenue 4.086 bln 3.762 bln +8.61 pct
EBITDA 668 mln 664 mln +0.60 pct
Operating profit 296 mln 295 mln +0.34 pct
Net loss 64 mln Net loss 306 mln N/A
($1 = 11.71 pesos at end June)
(Reporting by Gabriela Lopez; Editing by Derek Caney)