On 15 June 2009, Cemex S.A.B. de C.V. (Cemex) finalized an agreement to sell its Australian operations to Holcim Group for approximately A$2.02 bn; the proceeds are to be used to pay down debt and fund capital expenditure. However, as these operations represent only a small proportion of the company’s revenues, our fundamental outlook remains unchanged. Therefore, although the target price derived in our last update report does not support a HOLD, we maintain our 6-12 month…

Cemex S.A.B. de C.V.’s (Cemex) net sales and operating income fell below expectations in 1Q 09, although a large tax benefit led to higher-than-expected earnings. Although we expect Cemex to benefit from infrastructure development provisions in the US government’s recent stimulus package, the residential and commercial construction sectors remain hard-hit by the global economic downturn. Therefore, we maintain our 6-12 month HOLD rating for the ADR. We will reassess our ADR…

CLICK VIEW REPORT TO READ FREE REPORT

On 04 February 2009, Cemex provided sales guidance for FY 2009. The company expects volumes to decline across the majority of its operating geographies and product segments, reflecting the global downturn in the real estate and construction sectors. The company also provided its FY 2009 EBITDA guidance, which is below our expectation. However, we believe that Management’s guidance is conservative…