Bloomberg are reporting that Cemex SAB is staging its biggest rally in four years as the company gets a boost from cost cutting, US sales gains and a rebound in the Mexican peso.
Lower interest rates and taxes also will help the company boost free cash flow by US$350 million this year, more than the previously targeted increase of US$200 million.
While the cement maker may need a few more years to regain an investment-grade credit rating, Cemex has reduced its interest expenses and cut cash-flow needs. It’s also forging ahead with efforts to sell assets.
Cemex shares gained 27% this year through 23 March, after tumbling about a third in 2015.
As much as 85% of the growth in Cemex’s earnings before interest, depreciation, taxes and amortisation this year will come from the US. New-home construction in the US rose more than economists forecast in February, led by the strongest single-family building in more than eight years.
Edited from source by Joseph Green. Source: Bloomberg
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