Cemex SAB de CV (ADR) (NYSE:CX) has started to move down, after the company announced the divestment of its operations in Hungary and Austria. As per company reports, the company has agreed to sale its assets in the region to the Rohrdorfer Group, for an estimated price of €160.1 million. However, the company has also shifted its attention towards Nicaragua. Recently, Cemex announced that one of its subsidiaries has recently completed the first phase of construction of its new cement grinding plant. So far, the company has invested a total of $30 million in the plant.
Cemex operations in Austria had been responsible for net sales of $241 million during 2014, while the Hungary operations were responsible for $47 million in sales. Furthermore, Cemex also stated that the returns from the sales of these operations would be utilized in reducing company debt and for corporal operations. However, the transaction is still subject to the fulfillment of regulations by the two parties and the two companies expect to meet these requirements and proceed with the transaction in the 4Q2015.
The phase 1 of the company’s new cement grinding plant consists of the first grinding mill and is expected to produce 220,000 tons of cement annually. A second phase, which includes an additional grinding mill, has been proposed for phase 2, but the construction is not expected to be completed until the end of 2017. The second mill, if installed, will have a production capacity of 860,000 tons annually, but will require an investment of another $25 million for the project.
Analysts at the Street Ratings have awarded CX a hold rating, based on its recent decisions. CX had been improving on its EPS for the past 2-years and analysts believe that this trend would continue in the coming months.
Cemex SAB de CV (ADR) (NYSE:CX) recorded a decline of 4.18% in its share value, during the September 22 session. The stock was subjected to a trade volume of 11.4 million shares during the session, before reaching a close at $7.34.