Global Cement: Key Views Playing Out
BMI View : Our core views for the global cement industry are playing out, with the four largest cement producers remaining reliant on developed markets for growth, whilst their exposure to emerging markets hurts their bottom line. We are maintaining our views and continue to highlight Cemex as best placed to mitigate industry headwinds.
We are maintaining our core views for the global cement majors, following a realisation of the major trends we highlighted in November 2013 (see, 'Cement Producers Face Uncertainty As Asian Woes Offset European Recovery', November 14 2013).
We believe global cement majors will continue to benefit from an accelerating recovery in the European construction industry, as well as stable demand from the United States. However, offsetting this will be sustained challenges in emerging markets over the 6-12 month time horizon, especially currency costs for the European majors. In this mixed operating environment, we expect companies to continue to focus on debt reduction, consolidation and cost efficiencies.
|Cemex Outperformance On Currency Advantage|
|Cemex, Holcim, Lafarge, Heidelberg Share Prices, Rebased: 100 = 01/01/2013|