Cement Producers Face Uncertainty As Asian Woes Offset European Recovery
BMI View: Weak European construction has long been the major drag on the world's largest cement producers. However, just as we anticipate Europe's construction industry to stabilise and recover, operations in higher growth emerging markets are hitting speed bumps. A combination of currency fluctuations and inflation, particularly in Asia, is undermining improving margins and an ameliorating European picture. Overall, companies will continue to focus their efforts on cost efficiencies, debt reduction and streamlining operations to mitigate an uncertain operating environment.
Following the nine month financial results from the world's largest cement producers, a number of key trends can be highlighted:
Flat to weak growth outlook for the year overall.
Coming Down From A High Cement Majors, Net Debt, EURmn