Shares of Mexican cement and building materials maker Cemex fell 19% Thursday as dismal results from a debt exchange spurred investors to take profits following a big rally earlier in the week.
Bloomberg reports: “The company yesterday exchanged about 17 percent of the debt it had offered to refinance, a result that is “bad news,†said Francisco Suarez, head of equity research at brokerage Actinver SA in Mexico City. Cemex has more than $6 billion in debt coming due by the end of 2009.” It’s total debt is $16 billion.
Read Cemex Falls on Debt Swap ‘Bad News,’ Profit Concerns .
There is still hope that Obama’s economic package may stimulate demand for concrete. However, Cemex has a huge debt load after buying Rinker in 2007. Also Venezuelan President Hugo Chavez expropriated Cemex’s assets in his country last August and has rejected Cemex’s call for $1.3 billion in compensation.