What: It probably comes as little surprise for investors that shares of CEMEX, S.A.B. de C.V. (NYSE:CX) are plunging more than 11% during early Friday trading after the Brexit has driven global markets to a sell-off.
So what: While some stocks and markets in general are selling off due to broader uncertainty facing the European and global economies, companies such as CEMEX with a global presence are feeling more direct pain. CEMEX operates in over 50 countries and has trade relationships in roughly 108 nations.
Further, it operates two cement plants in the United Kingdom, one cement mill, 196 ready-mix plants, 53 aggregate quarries, and four cement import terminals. CEMEX is the leading provider of building materials in the U.K., and the Brexit is clearly going to have a direct impact on strategic investment decisions and financial results moving forward.
Now what: With that said, it's important for investors to realize that CEMEX generates about 7.1% of its total net sales in Europe, as of the most recent quarter, so this sell-off seems a bit harsh in that light. Ultimately, there will be a long period of time to figure out how to minimize the impact of U.K.'s decision to leave the European Union, and chances are we'll all be fine in the long run.