building a STRONGER foundation - Cemex

Operating income from our operations in Egypt increased approximately 20%, from approximately Ps3.5 billion in 2009 to
approximately Ps4.1 billion in 2010 in Peso terms, primarily as a result of improved results in our cement operations. Our operations
in the Rest of Africa and the Middle East decreased approximately 73%, from an operating income of Ps830 million in 2009 to an
operating income of Ps228 million in 2010 in Peso terms. The decrease in operating income in the Rest of Africa and the Middle East
resulted primarily from weaker results in the UAE, particularly in cement.
Asia
Our operating income from our operations in Asia decreased approximately 11%, from approximately Ps1.1 billion in 2009 to
approximately Ps982 million in 2010 in Peso terms. The decrease in operating income resulted primarily from weaker operating
results in China and Malaysia, along with exchange rate effects.
Our operating income from our operations in the Philippines decreased approximately 9%, from approximately Ps996 million in
2009 to approximately Ps909 million in 2010 in Peso terms. The decrease in operating income resulted primarily from exchange rate
effects.
Others
Operating loss in our Others segment improved by approximately 35%, from a loss of approximately Ps4.9 billion in 2009 to a
loss of approximately Ps3.2 billion in 2010 in Peso terms, primarily explained by a substantial increase in our worldwide cement,
clinker and slag trading operations.
Other Expenses, Net. Our other expenses, net, increased, from approximately Ps5.5 billion in 2009 to approximately Ps6.7
billion in 2010, primarily due to higher asset impairments and loss on the sale of assets, as well as amortization of fees related to the
early redemption of debt.
The most significant items included under this caption in 2009 and 2010 are as follows:
96
2009 2010
(in millions of Pesos)
Impairment losses...................................................................................... Ps (889) Ps (1,904)
Restructuring costs.................................................................................... (1,100) (897)
Charitable contributions............................................................................ (264) (385)
Results from sales of assets and others, net............................................... (3,276) (3,486)
Ps (5,529) Ps (6,672)
Comprehensive Financing Result. Pursuant to MFRS, the comprehensive financing result should measure the real cost (gain) of
an entity’s financing, net of the foreign currency fluctuations and the inflationary effects on monetary assets and liabilities. In periods
of high inflation or currency depreciation, significant volatility may arise and is reflected under this caption. Comprehensive financing
income (expense) includes:
financial or interest expense on borrowed funds;
financial income on cash and temporary investments;
appreciation or depreciation resulting from the valuation of financial instruments, including derivative instruments and
marketable securities, as well as the realized gain or loss from the sale or liquidation of such instruments or securities;
foreign exchange gains or losses associated with monetary assets and liabilities denominated in foreign currencies; and
beginning in 2008, gains and losses resulting from having monetary liabilities or assets exposed to inflation (monetary
position result) in countries under high inflation environments.
Year Ended December 31,
2009 2010
(in millions of Pesos)
Comprehensive financing result:
Financial expense ........................................................................ Ps (13,513) Ps (16,302)
Financial income.......................................................................... 385 439
Results from financial instruments .............................................. (2,127) (956)
Foreign exchange result............................................................... (266) 926
Monetary position result.............................................................. 415 266
Comprehensive financing result......................................... Ps (15,106) Ps (15,627)