MONTERREY: Mexico's Cemex could sell part of its business in northern Europe, the Mediterranean and Asia as it seeks to pay down debt, the cement giant's CEO told Reuters on Tuesday.
Fernando Gonzalez said the firm could also sell 5 to 10 percent of its subsidiary Cemex Latam Holdings, and set aside half of its earnings from asset sales to lower its debt burden.
The company announced a plan last week to cut costs and sell assets to boost its finances and cut liabilities, in a bid to regain its investment grade rating.
Cemex has struggled with large debts and cost-cutting since former CEO Lorenzo Zambrano's ill-timed $16 billion takeover of Australian rival Rinker in 2007, when the US housing market was already months into a downturn.
Its credit rating was downgraded by Standard & Poor's and Fitch Ratings and now stands at B-plus, which is four notches below investment grade.
Gonzalez also said the company could reach an EBITDA target of $4.7 billion in 2018, adding that he sees a rise of 10 to 12 percent in the price of its products in the United States.
Comments
Comments are closed.