Cemex (CX – NYSE) produces, distributes, markets, and sells cement, ready-mix concrete, aggregates, and clinker worldwide. It delivers its products through direct sales and distribution channels to the residential, industrial, commercial, and public sectors.
Cemex has higher profit margins than its competitors and is reducing its debt. Management is focused on putting its excess cash flow into expansion and optimization projects instead of acquisitions. Cemex is also modernizing plants in Europe to optimize efficiency of existing operations.
Cemex has more exposure than other cement companies to the expected growth in emerging markets. Over 60% of Cemex’s earnings are from emerging markets where cement demands will be increasing more than in developed countries. In addition there is high growth in the construction sectors in U.S. and Mexico.
In addition to Cemex’s exposure to emerging markets the company has increased its participation in the Eastern European market through its acquisition of RMC. In addition, Cemex’s dependence on Mexico has decreased; last year Mexico made up 32% of sales vs. 21% in the first quarter of this year.
Cemex has a strong expressed commitment to sustainable development, and has undertaken a broad range of social and environmental initiatives to address its impacts. The company won the World Environment Center’s Gold Medal for International Corporate Achievement in 2002. The company has pledged to cut its CO2 emissions per unit of cement produced 25% from 1990 baseline levels by 2015.