Mexico’s Cemex is seen to cut its net loss in the second quarter of the year due to higher prices, although concerns over the company's debt situation linger, Reuters reported.
According to a Reuters poll of seven analysts, the giant cement maker is expected to post a $64-million loss in the April-June period, compared to a $306-million loss in the same period last year.
"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, the report said.
According to a Reuters poll of seven analysts, the giant cement maker is expected to post a $64-million loss in the April-June period, compared to a $306-million loss in the same period last year.
"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, the report said.
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