Here's one for fans of irony: Mexican cement provider Cemex (CX) is likely to be one of the biggest beneficiaries of Donald Trump's planned $1 trillion investment in U.S. infrastructure, according to analysis by French broker Exane BNP.
The San Pedro Garza Garcia-based group could add about 35% to its earnings per share by 2020 if the President-elect delivers on his plan to overhaul the U.S.'s creaking bridges, overstretched airports and potholed roads.
The project would also provide a major boost to European building products groups, notably Greece's Titan Cement (TITCF) , where earnings per share could rise by just under 50% by 2020, Italy's Buzzi Unicem (BZZUF) , up more than 30% and Ireland's CRH (CRH) up by just over 20%, noted Exane BNP.
Trump's plan "could theoretically increase U.S, infrastructure capex from $200 billion to $450 billion per annum," wrote Exane's Paul Roger, Yassine Touahri and Yves Bromehead. "If delivered, it could materially boost building materials demand and support much higher prices in an already-tight market."
Details of the plan remain vague. Trump's website cites the headline $1 trillion figure but offers no breakdown of spending. Comment on the investment plan were also missing from the Republican's first video outlining his immediate priorities.
Taking the promised injection at face value, and adding it to the "FAST Act" investment in U.S. highways (which will boost infrastructure spending by about 4% a year until 2020), could mean an increase in building material sales volumes of 5% next year, 8% in 2018 and 10% in 2019 and 2020, according to Exane BNP.