building a STRONGER foundation - Cemex

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