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Cemex expects further asset sales till year end

After Cemex on Monday announced that its subsidiary Cemex USA finalized the sale of a 8,500 acre property to a group of local land trust for a consideration of USD 30 mn, yesterday it released that it expects further asset sales of USD 100 mn until year-end. The statements are in line with the guidance provided during the Q3 conference call, when Cemex stated that it aims for asset disposals of c. USD 100-200 mn till year end.

Most analysts do not believe Cemex will breach its FY 2011 covenants, yet levels tighten in H1 FY 2012. With c. USD 18.5 bn of total debt and net leverage of c. 7.8x, much work is required to bring Cemex on more sound footing. Many believe that the company should be able to improve its performance in the US, nonetheless the industry outlook remains challenging.