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PREVIEW-Cemex seen posting smaller 2nd qtr net loss
July 19, 2011 / 2:40 PM / 6 years ago

PREVIEW-Cemex seen posting smaller 2nd qtr net loss

 * 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 (Reuters) - 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 period.
 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)  

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