Arab Today, arab today cemex ibm sign outsourcing pact
Last Updated : GMT 21:22:07
Arab Today, arab today
Arab Today, arab today

Cemex, IBM sign outsourcing pact

Arab Today, arab today

Arab Today, arab today Cemex, IBM sign outsourcing pact

Mexico City - Agencies

Mexico’s top cement maker Cemex is outsourcing jobs worldwide to International Business Machines Corporation (IBM) in a deal that will help it save $1 billion over 10 years, the latest bid by the company to trim costs and boost its financial health. Cemex, which was swamped by the collapse of the US housing market after paying out some $16 billion to buy Australian peer Rinker, has been working its way out of a deep debt hole for the past three years. Cemex Chief Financial Officer Fernando Gonzalez told Reuters that the outsourcing deal with International Business Machines Corporation would likely affect between 1,500 and 2,000 jobs, which he said was a preliminary estimate. Some of those jobs may be absorbed by IBM, Gonzalez said. Cemex will start passing jobs to IBM from September, and the entire transition should be complete by December 2013. The company declined to give specifics about the types of jobs that would be outsourced or say where it would take place. Monterrey-based Cemex, employs about 42,000 people worldwide and has operations in over 50 countries. It was not clear if jobs in Mexico would be affected. “Starting 2014 is when we will have a full year of savings that we hope should be of more than $100 million per year,” Gonzalez said, adding that final numbers for the outsourcing plan would not be public until later this year. The contract is IBM’s largest outsourcing deal with a Mexican company and ranks among the biggest IBM has agreed in Latin America, said Bob Hoey, general manager for IBM’s integrated technology services business. “While $1 billion sounds pretty attractive, and it is definitely good news for the company, we won’t see the real benefits until they get reflected in their profits,” said Norma Lopez, an analyst with brokerage Multivalores. By cutting costs and its debt burden, Cemex is getting back on its feet. Two weeks ago, the company posted its highest quarterly operating core profit in nearly three years on a pickup in its US business. IBM will provide Cemex with business process and information technology services. It will also include finance and accounting, and human resources back-office services. Mexico has kept labor costs in check over the past decade and manufacturing has helped to power the economy, which last year outperformed Brazil for the first time in years. Latin America’s second-biggest economy is expected to grow faster than Brazil again in 2012, and Mexico has been attracting new factories as rising Chinese wages make Mexico, with its proximity to the United States, more attractive. Cemex is extending the maturity on a big chunk of its debt, which would help it dodge a maturity tsunami of $7.25 billion in early 2014, as it struggles with a stagnant construction market. Cemex has proposed a debt exchange to lenders -selling assets, a pre-payment and revised financial covenants to gain breathing space. The proposal, announced in late June, has been negotiated with half of the creditors. The exchange offer is due on Aug.20. So far, Cemex has reported strong participation by lenders. Gonzalez said Cemex was reviewing operations worldwide to spot the ones that could be sold entirely, but it is open to unloading minority stakes, too. He declined to comment on which operations were being reviewed. The largest cement maker in the Americas, boosted US sales to the highest level in more than three years, fueling share gains even as revenue fell in Mexico and Europe. “We are very positive on the evolution of the market in the US - finally, after so many years,” said Fernando Gonzalez, on a conference call with analysts and investors. Cemex has reported 11 straight quarterly net losses, having suffered during a US construction recession after the $14.2 billion acquisition in 2007 of Rinker Group, which generated more than 80 per cent of its sales in the US During 2010, 2011 and the first three months of this year, the US was the company’s only regional market that lost money in Ebitda terms. “There’s a long way to go in the US, but it finally returned to positive territory,” said Esteban Polidura, an analyst at Deutsche Bank in Mexico City, who has a buy rating on Cemex shares. From gulftoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today cemex ibm sign outsourcing pact Arab Today, arab today cemex ibm sign outsourcing pact

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday