Cemex

2598 Words Nov 28th, 2007 11 Pages
Cemex S.A.B. de C.V.
(Cemex)

Executive Summary

This paper presents fundamental and financial analysis of Cemex. The analysis is

performed by analyzing the company 's financial data for the period beginning December

2002 through December 2005. The paper introduces Cemex by presenting the company 's information and a brief

summary of its main activities. Following the introduction, the paper will perform an

extensive industry and company analysis and summarize these findings in the SWOT

analysis. This will assess Cemex 's strengths, weaknesses, opportunities, and threats.

The paper will then provide a complete financial statement analysis and ratio analysis.

In conclusion, the paper
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The Vulcan Materials acquisition was

at a 44 % premium while Cemex 's bid for Rinker was at 29% premium. This would

indicate the price to purchase Rinker has increased.

Cemex has pushed IT into the building industry. They are trying to be the low cost

leader in each industry. Cemex will grow organically and with bolt on acquisitions.

They are also focused on operational improvement as well as increasing shareholder

value.

Although the outlook for the US housing market does not look promising, growth in

the US is estimated to increase 2.5% (Concrete Products, Dec 2006). The global growth

is estimated at 8.5% (World Cement report 2007) but the majority of growth will take

place in China and India. Cemex currently has no presence in China and some in India.

Strengths, Weaknesses, Opportunities, and Threats Opportunities Threats Strengths 1. Fairly Strong Financial position 1. Economic Slowdown 2. Rapid growth… look for synergy 2. Product differentiation 3. New markets… China, Australia 3. Tariff restrictions to certain countries 4. New Product lines…Concrete pipe 4. Management…Due to growth 5. Technology leader…process is management strong enough 6. Building relationships with new 5. Exchange rates communities 6. Debt

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