CEMEX: Neck-Deep in Trouble – Analyst Blog
Zacks Market Commentaries (July 29th, 2009) Writes:
On July 28, debt-laden Mexican cement maker CEMEX, S.A. de C.V. (CX) posted weak results for the second quarter of 2009. Net debt at the end of the second quarter was $18,272 million, representing an increase of $238 million during the quarter. Consolidated net sales decreased to $4,188 million, representing a decrease of 34%, compared to the second quarter of 2008 due to lower volumes from U.S. and Spanish operations, which was partially mitigated by price inelasticity. EBITDA decreased 41% year over year to $812 million and EBITDA margin decreased by 220 basis points from 21.6% in the second quarter of 2008 to 19.4% at the end of June, 2009.
Operating income decreased to $411 million in the second quarter of 2009 from $899 million in the year-ago quarter. This decline was due to the increase in costs and expenses on lower volumes both in the U.S. and Spain.
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