Exchange: cement-sanctioned - July 8, 2010
Hard times for cement? This seems to believe the stock exchange operators on Wednesday. Every sector is affected by falls in Europe. The Stoxx Construction Materials lost 1.08% to 2550 points. This is the largest sectoral decline in Europe. A wind blowing across the cement concern since the Irish HRC issued a warning on its sales in 2010.
The Irish group announced Wednesday that its sales in 2010 would be affected more severely than expected by the consequences of fiscal consolidation in the euro area and slowing the pace of recovery in the United States. The penalty is immediate Dublin Stock Exchange: securities lost 8.76% to 15.62 euros to 10.40.
Meanwhile in Paris, his rival Lafarge signs the worst performance of the CAC 40.Titles unleash 3.32% to 40.18 euros on a market down by 1.55%.
Bond issue
Furthermore, the stock reacts to the bond issue launched by the French cement. Lafarge announced on Wednesday will raise 550 million dollars (about 437 million euros) from an "institutional investors in the United States. The program will last five years and will focus on a fixed coupon of 5.5%.
The funds raised are expected to refinance part of the group's debt, which on 31 March, amounted to 14.58 billion euros. The settlement and issuance of bonds are scheduled for July 9, 2010.
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