CEMEX Weak Results Continue - Analyst Blog
CEMEX (CX) is a leading global producer of cement and ready-mix products, with operations concentrated in major cement markets of four continents. CEMEX serves clients ranging from individual homebuilders to large industrial contractors.
We are keeping our Sell rating on CEMEX. The company posted weak results in the third quarter of 2008 together with a 74% year-over-year decline in net income. The continued weak cement volumes in Spain and U.S. are problematic.
The short-term outlook for the company remains highly uncertain based on the downtrend in the residential, industrial/commercial sector and the infrastructure sector as well due to the fall in the real estate prices throughout the world. Moreover, the current credit crunch and the recession in U.S. is a matter of huge concern. We believe that the government takeover of the Venezuela subsidiary is also troublesome.
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