SOURCE: Wall Street Equity Research

Wall Street Equity Research

January 03, 2011 08:32 ET

Analyst Study on CEMEX S.A.B. de C.V. and Eagle Materials Inc. - Cement Producers Struggle in the US and Mexico

JOHANNESBURG, SOUTH AFRICA--(Marketwire - January 3, 2011) - www.wallstreetequityresearch.com brings investors market knowledge on the aspects moving the cement stocks, and offers complete analytical research on companies like CEMEX S.A.B. de C.V. (NYSE: CX) and Eagle Materials Inc. (NYSE: EXP). Register with www.wallstreetequityresearch.com today to gain full access to our complimentary research on these cement stocks.

Cement producers in the US and in Mexico continue to struggle as government infrastructure spending declines in both countries. Mexican cement producers are concerned over its government's recent activity while US producers are concerned over its government's inactivity. Visit us at http://www.wallstreetequityresearch.com/ to understand the catalysts and forces driving or affecting companies in the cement industry.

www.wallstreetequityresearch.com is a specialized website where investors can have specific access to complimentary reports on cement industry; traders looking for analysis on CEMEX S.A.B. de C.V., Eagle Materials Inc. and other players in the industry are welcomed to sign up for free at http://www.wallstreetequityresearch.com/.

Mexico requested the expansion of its International Monetary Fund credit line from $47 billion over 1 year to $73 billion over two years. The move is particularly concerning to cement manufacturers in the region which fear the credit line expansion is an indication that infrastructure spending will continue to decline. Anti-trust investigations have also been problematic for some Mexican cement producers like CEMEX S.A.B. de C.V. lately. Investors can register today at http://wallstreetequityresearch.com/January032011CEMEXS.A.B.deC.V.(CX)030111.php to download the full report on CEMEX S.A.B. de C.V.

In the US, Congress postponed voting on a multi-year transportation bill and domestic cement producers have been adversely affected. Government funded highway and infrastructure projects account for a significant portion of major cement producers' revenues. As an example, Eagle Materials Inc. gets up to 50% of its revenue from this highway construction projects. The current extension of highway funds expired last week on December 31st. Cement makers had hoped Congress would pass a new bill or at least pass an extension prior to its expiration. Without an extension, state governments are unable to put new contracts up for bid. The decrease in government contracts makes the non-government market much more competitive. As a result, companies must bid higher and make less money on the materials they produce. Investors can access free research on Eagle Materials Inc. now by signing up at http://wallstreetequityresearch.com/January032011EagleMaterialsInc.(EXP)030111.php.

Overall, the outlook for cement producers above and below the Rio Grande is bleak at the moment. An increase in non-government construction projects could allay some of the government project related losses though. Passage of a new transportation bill in the US could also help cement producers turn revenues around. 

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