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Buzzi views 2009 forecasts as reasonable-source

Feb, 03 2009


Italian cement group Buzzi Unicem (BZU.MI) views analysts' estimates for 2009 EBITDA of around 700 million to 750 million euros as "reasonable," a company source told Reuters on Monday.

These estimates are 20-25 percent lower than the analyst consensus estimate for 2008 earnings before interest, tax, depreciation, and amortisation (EBITDA) of 952 million euros ($1.22 billion).

Buzzi, Italy's second-largest cement player with operations in the United States, Mexico and eastern Europe, is due to release its preliminary 2008 results on Friday and final numbers in March.

"Buzzi thinks that (such forecasts are) reasonable for the company according to the information available today," the source said on condition of anonymity.

Buzzi has not provided its own 2009 earnings forecast.

The source also highlighted that Buzzi's results "are heavily influenced by changes in the value of the U.S. dollar, the Mexican peso, and eastern Europe (currencies), which in the last few months have had enormous fluctuations."

Buzzi's Frankfurt-listed unit Dyckerhoff (DYKG.DE) earlier on Monday posted an 11 percent rise in 2008 sales and forecast lower 2009 sales and a considerable drop in results.

Buzzi Unicem shares closed down on Monday 3.52 percent at 9.45 euros.

The economic downturn has strongly hit demand for cement and building materials worldwide.

Cement makers have responded to the crisis by putting expansion plans on hold in the hope government infrastructure projects and lower fuels costs will ease pressure on margins.

Mexico's Cemex (CX.N) (CMXCPO.MX), the world's No. 3 cement maker, said it would further cut costs and focus on debt reduction after posting its first quarterly loss in a decade last week. ($1=.7827 Euro)

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