Cemex is expected show improvement in its second-quarter results as recovering US operations offset weakness in Europe, although a stronger US dollar is likely to limit sales in dollar terms and contribute to a net loss for the period.
The company will probably report sales of US$4.03bn for the April-June quarter, according to the median estimate of six equities analysts consulted by Dow Jones, little changed from US$4.09bn in the year-ago period.
EBITDA probably increased to US$669m from US$615m, helped by improvement in the US and by cost-cutting and energy savings. Cemex ran up Ebitda losses in the U.S. in 2010 and 2011, and investors are watching closely for a turnaround this year.
Cemex's net loss is expected to narrow to US$155m from a loss of US$294m in the second quarter of 2011, while several of the analysts predicted a small net profit for the most recent quarter.
Deutsche Bank said in a report that recovering sales volumes in the US, and a strong performance in Mexico and elsewhere in the Americas, likely offset weak economic conditions in northern Europe. "A stronger US dollar should also have a negative impact on consolidated revenues as about 80% of Cemex's sales are generated in regions outside the US," Deutsche Bank said.
Cemex plans to report its second-quarter results later today.
