Sales for the first half of 2003 for Paris-based CIMENTS FRANÇAIS (an Italcementi Group) were 1.42 billion euros (US$1.54 billion), down 1.4% as compared to the same period in 2002, but up 2.7% on a like-for-like basis. The company attributed the trend to shrinking business in France and the United States and expects it to continue for the second half of the year.

Operating income was slightly smaller in the first half, down 4.4% to 229.9 million euros (US$249.3 million), while net income remained stable at 80.5 million euros (US$87.3 million), up 0.6% from 2002. Overall, the group's financial debt came down to 1.578 billion euros (US$ 1.711 billion).

CEMEX, S.A. de C.V. announced that it expects EBITDA for the quarter ending Sept. 30 of about US$560 million, an increase of 11% versus the year-earlier period, while operating income is expected to reach about US$400 million. EBITDA for the first nine months of 2003 is expected to exceed US$1.55 billion.

For the third quarter, CEMEX expects to achieve revenue of about US$1.8 billion, while free cash flow is expected to exceed US$330 million, resulting in about US$810 million of free cash flow for the first nine months of 2003, an increase of 23% versus 2002 figures.

For the third quarter, Cemex Mexico's domestic gray cement volume is expected to grow about 3% versus the same quarter a year ago and is expected to be 5% higher for the first nine months of the year as compared to the same period in 2002. Cement demand from the public works and social housing sectors continues to drive growth, while the self-construction sector continues to provide moderate growth.

Cement sales volumes for Cemex's U.S. operations are expected to increase 2% versus the same quarter in 2002, or a decrease of about 1% for the first nine months. Cement demand is being driven mainly by construction in the residential sector as well as spending in public works.