Sep 3 2010
www.stockcall.com/ offers investors comprehensive research on the cement industry and has completed analytical research on CEMEX S.A.B. de C.V. (NYSE: CX) and Eagle Materials Inc. (NYSE: EXP).
Good cement requires carefully measured and balanced ingredients. A successful cement industry requires similarly balanced ingredients. At the moment a poor housing market, rising prices for construction materials, high unemployment, reduced consumer spending and a stalled economic recovery have blended together to halt growth almost completely. All of the aforementioned factors essentially lead to the same problem for the cement industry - little to no construction.
www.stockcall.com/ is an online platform where investors doing their due-diligence on the cement industry can have easy and free access to our analyst research and opinions on CEMEX S.A.B. de C.V. and Eagle Materials Inc.; all investors need to do is register for a complimentary membership at https://stockcall.com/development/stockcall/page.php?name=register.html
Current economic conditions are not at all favorable to construction, and in turn, not at all favorable to cement producers. The rising price of construction materials is one of the more troubling omens for the cement industry. Currently, construction materials are expected to go up as much as 6% this year while inflation is only 1%.
Aside from construction materials, the success of the cement industry is often closely connected to the success of the housing industry. Buyer confidence is already low and is being compounded by the expiration of the homebuyer's tax credit. Visit www.stockcall.com/ to see how companies in this industry have grown over the past years and how they are expected to perform in the future.
A litany of detrimental issues plague cement producers at the moment but there is reason for some optimism. While the cement industry may be debt laden at the moment, restructuring and asset selling are helping to lessen money owed and position the industry for a rebound in 2011.
During this quarter, CEMEX S.A.B. de C.V. recorded a 3% decline in sales to $3.8 billion with operating income falling by 23%.
Conversely, Eagle Materials Inc. posted revenues of $130.8 million and earnings per diluted share of $0.24.