building a STRONGER foundation - Cemex
building a STRONGER foundation - Cemex
building a STRONGER foundation - Cemex
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Operating Income. For the reasons mentioned above, our operating income decreased approximately 32%, from approximately<br />
Ps15.8 billion in 2009 to approximately Ps10.8 billion in 2010. As a percentage of net sales, operating income decreased from<br />
approximately 8% in 2009 to approximately 6% in 2010. Additionally, set forth below is a quantitative and qualitative analysis of the<br />
effects of the various factors affecting our operating income on a geographic segment basis.<br />
Mexico<br />
Our operating income from our operations in Mexico decreased approximately 11%, from approximately Ps14.0 billion in 2009<br />
to approximately Ps12.4 billion in 2010 in Peso terms. The decrease in operating income was primarily attributable to the decreases in<br />
domestic cement and ready-mix concrete sales volumes, partially offset by the increase in ready-mix concrete average sales prices<br />
explained above.<br />
United States<br />
Our operating loss from our operations in the U.S. increased approximately 23%, from an operating loss of Ps7.3 billion in 2009<br />
to an operating loss of Ps9.0 billion in 2010 in Peso terms. As mentioned above, the increase in operating loss resulted primarily from<br />
a slower than expected economic recovery and decreases in our local average cement and ready-mix concrete average sales prices.<br />
Spain<br />
Our operating income from our operations in Spain decreased approximately 41%, from approximately Ps1.7 billion in 2009 to<br />
Ps984 million in 2010 in Peso terms. The decrease in operating income resulted primarily from decreases in cement and ready-mix<br />
concrete sales volumes and average sales prices given the depressed Spanish economy, as well as cuts in the national budget.<br />
United Kingdom<br />
Our operating loss from our operations in the United Kingdom decreased approximately 9%, from a loss of Ps859 million in<br />
2009 to a loss of Ps780 million in 2010 in Peso terms. The decrease in the operating loss of our operations in the United Kingdom<br />
during 2010 compared to 2009 resulted primarily from our cost reduction initiatives.<br />
Germany<br />
Our operating income from our operations in Germany decreased approximately 96%, from Ps658 million in 2009 to Ps26<br />
million in 2010 in Peso terms. The decrease resulted primarily from a decrease in cement sales volumes due to lower demand for<br />
<strong>building</strong> materials, which were also affected by poor winter weather conditions.<br />
France<br />
Our operating income from our operations in France decreased approximately 72%, from approximately Ps786 million in 2009<br />
to approximately Ps221 million in 2010 in Peso terms. The decrease resulted primarily from lower aggregates sale volumes and lower<br />
ready-mix and aggregates average sales prices, along with higher energy costs.<br />
Rest of Europe<br />
Our operating income from our operations in the Rest of Europe decreased approximately 59%, from approximately Ps976<br />
million in 2009 to approximately Ps399 million in 2010 in Peso terms. The decrease in our operating income from our operations in<br />
the Rest of Europe resulted from lower sales volumes in our ready-mix and aggregates sectors, along with higher energy costs.<br />
South America, Central America and the Caribbean<br />
Our operating income from our operations in South America, Central America and the Caribbean decreased approximately 18%,<br />
from approximately Ps5.5 billion in 2009 to approximately Ps4.4 billion in 2010 in Peso terms. The decrease in operating income was<br />
primarily attributable to the decreases in domestic cement and ready-mix concrete sales volumes.<br />
In Colombia, operating income decreased approximately 17%, from approximately Ps2.7 billion in 2009 to approximately Ps2.2<br />
billion in 2010 in Peso terms. The decrease resulted primarily from higher energy costs and sale expenses.<br />
Africa and the Middle East<br />
Our operating income from our operations in Africa and the Middle East increased approximately 2%, from approximately<br />
Ps4.3 billion in 2009 to approximately Ps4.4 billion in 2010 in Peso terms. The increase in operating income resulted primarily from<br />
our Egyptian operations due to an increase in domestic cement sales volumes, partially offset by weaker operating results in the UAE.<br />
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