Construction and Housebuilding

Cemex: Input cost inflation means small EBITDA miss for Q4; 2019 outlook for steady growth

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Abbey OUTPERFORM 30/06/09 N/A N/A 1400c
Barratt Developments plc NEUTRAL 24/03/14 Outperform 10/09/13 553p
Bellway plc OUTPERFORM 24/03/14 Neutral 10/09/13 2797p
Berkeley Group UNDERPERFORM 10/09/13 Under Review 21/05/13 3758p
Bovis Homes plc OUTPERFORM 10/09/13 Under Review 21/05/13 1022p
Buzzi Unicem OUTPERFORM 04/04/16 Neutral 05/08/15 1635c
CRH OUTPERFORM 23/05/12 Neutral 12/01/12 2625c
Geberit NEUTRAL 08/05/14 Underperform 09/11/12 39000chf
Grafton Group OUTPERFORM 15/12/15 Neutral 07/09/15 729p
HeidelbergCement AG OUTPERFORM 16/06/17 Neutral 05/02/14 5906c
Kingspan Group OUTPERFORM 12/05/11 Neutral 30/06/09 3774c
LafargeHolcim NEUTRAL 09/01/19 Underperform 17/11/15 4761chf
Persimmon plc UNDERPERFORM 10/09/13 Under Review 21/05/13 2378p
Redrow plc NEUTRAL 10/09/13 Under Review 21/05/13 582p
Saint-Gobain Group NEUTRAL 09/01/19 Outperform 07/09/15 3138c
SIG plc NEUTRAL 01/07/16 Outperform 15/12/15 121p
Taylor Wimpey plc OUTPERFORM 10/09/13 Under Review 21/05/13 164p
Travis Perkins plc UNDERPERFORM 01/07/16 Neutral 20/10/14 1209p
Wienerberger OUTPERFORM 09/05/18 Neutral 09/01/17 2010c
Howden Joinery OUTPERFORM 29/01/15 N/A N/A 497p
Kingfisher NEUTRAL 20/08/18 Outperform 02/10/17 227p
Cairn Homes OUTPERFORM 26/08/15 N/A N/A 127c
Ibstock plc NEUTRAL 04/08/17 Outperform 19/08/16 234p
Forterra plc NEUTRAL 19/08/16 N/A N/A 271p
Breedon Group NEUTRAL 25/10/17 Outperform 06/03/17 67.4p
Glenveagh Properties OUTPERFORM 10/11/17 N/A N/A 81.4c
Ferguson NEUTRAL 10/11/17 N/A N/A 5276.0p

DAVY VIEW

Increased energy costs and adverse weather are well-versed explanations for EBITDA misses at this stage for Q4. In addition to results, Cemex delivered a positive 2019 volume outlook with robust volume growth in all markets with the potential exception of UK cement. Cemex also cited traction in raising prices in the US and is optimistic on following up with European price increases. This upbeat outlook has positive implications for Cemex’s peers, CRH and HeidelbergCement.

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Feb 8 2019, 07:18 GMT

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