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Today's Research on CEMEX and Texas Industries: Growth Projection for 2013 Cement Consumption Revised Upwards



  Today's Research on CEMEX and Texas Industries: Growth Projection for 2013
                      Cement Consumption Revised Upwards

  PR Newswire

  LONDON, January 24, 2013

LONDON, January 24, 2013 /PRNewswire/ --

The Portland Cement Association (PCA) expects strong growth in cement
consumption in 2013 due to improving economic fundamentals, pent-up demand and
diminished economic uncertainty. The strong growth in cement consumption
should benefit companies such as CEMEX S.A.B. de C.V. (NYSE: CX) and Texas
Industries Inc. (NYSE: TXI). Analysts at StockCall.com released two
comprehensive research reports on CEMEX and Texas Industries which can be
accessed for free by signing up now at
http://www.stockcall.com/technicalanalysis  

Cement Consumption Growth to be driven by Residential Construction  

The PCA, which represents cement companies in the U.S. and Canada, forecasts
an 8.1% growth in cement consumption in 2013. The growth forecast has been
upwardly revised after the recent fiscal cliff deal, which ended a great deal
of uncertainty. Improving economic fundamentals and bullish outlook for
residential construction activity in the U.S. also led to the upward revision
in cement consumption growth forecasts.

Residential construction activity in the U.S., in fact, is expected to be the
biggest driver of growth in 2013 cement consumption. According to a report
released by the Commerce Department last week, housing starts rose 12.1% to a
seasonally adjusted annual rate of 954,000 units in December, which is the
highest level since June 2008. Given the ongoing improvement in the housing
market, it is no surprise that the outlook for cement consumption is bullish.

The PCA excepts cement consumption growth to pick up in the second quarter.
For 2014, cement consumption growth is forecast at 8.3%.

Recent economic data from China, including last week's better-than-forecast
GDP numbers, is also a good sign for cement companies. However, the biggest
concern is Europe. According to data released by Eurostat, construction output
in the euro zone fell 0.4% in November. Construction output in the European
Union, meanwhile, fell 0.9%.

Weakness in Europe a Worry for CEMEX

Weakness in Europe is a major concern for CEMEX as the company derives a
significant portion of its revenue from the region. While robust economic
growth in Mexico, CEMEX's home market, and the U.S. augur well for the
company, Europe remains a worry. StockCall technical report on CEMEX S.A.B. de
C.V. is accessible for free at http://www.StockCall.com/CX012413.pdf

Another concern for CEMEX is the company's debt load. The company has already
taken steps to address this issue though. Last month, CEMEX announced that it
completed its financial plan for 2012. Under the plan, the company refinanced
and/or prepaid debt scheduled to mature through 2014.

Fernando Gonzalez, Executive Vice President of Finance and Administration,
last month said that during 2012, the company took decisive steps to improve
its debt maturity profile and strengthen its capital structure and the company
is now not only in a better shape financially, but also much more agile and
flexible operationally.

CEMEX will release its fourth quarter results on February 03 ^rd .

Texas Industries Narrows Loss

Earlier this month, Texas Industries Inc. [ Free Research Report for TXI ] ^[
^1 ^] reported its second quarter financial results. The company's loss in the
second quarter narrowed as sales rose.

Texas Industries reported a loss of $11.1 million, or $0.40 per share for the
second quarter, compared to a loss of $21 million, or $0.75 per share reported
for the same period in the previous year.

The company's revenue from cement business rose 18% to $91.4 million in the
quarter.

Footer:

 1. Texas Industries Inc. Technical Analysis [
    http://www.StockCall.com/TexasIndustriesInc012413.pdf ]

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