building a STRONGER foundation - Cemex

Mexico
Our domestic cement sales volumes from our operations in Mexico decreased approximately 4% in 2009 compared to 2008, and
ready-mix concrete sales volumes decreased approximately 14% during the same period. The residential and infrastructure sectors
continue to be the main drivers of cement demand in the country. In 2009, activity from other construction sectors softened as they
were affected by the overall challenging macroeconomic environment. Our cement export volumes from our operations in Mexico,
which represented approximately 3% of our Mexican cement sales volumes in 2009, decreased approximately 61% in 2009 compared
to 2008, primarily as a result of lower export volumes to the United States. Of our total cement export volumes during 2009 from our
operations in Mexico, 19% was shipped to the United States, 71% to Central America and the Caribbean and 10% to South America.
Our net sales from our operations in Mexico represented approximately 20% of our total net sales in 2009, in Peso terms, before
eliminations resulting from consolidation. Our average domestic sales price of cement from our operations in Mexico increased
approximately 2% in Peso terms in 2009 compared to 2008, and the average sales price of ready-mix concrete increased
approximately 1% in Peso terms over the same period. For the year ended December 31, 2009, cement represented approximately
56%, ready-mix concrete approximately 23% and our aggregates and other businesses approximately 21% of our net sales for our
operations in Mexico before intra-sector eliminations within the segment and before eliminations from consolidation, as applicable.
As a result of the decreases in domestic cement and ready-mix concrete sales volumes, partially offset by the increase in
domestic cement and ready-mix concrete sales prices, our Mexican net sales, in Peso terms, declined slightly in 2009 compared to
2008.
United States
Our domestic cement sales volumes from our operations in the U.S., which include cement purchased from our other operations,
decreased approximately 32% in 2009 compared to 2008, and ready-mix concrete sales volumes decreased approximately 38% during
the same period. The decreases in our domestic cement and ready-mix concrete sales volumes from our operations in the U.S. resulted
primarily from significantly weaker demand in all our U.S. markets, as decreased confidence and lower activity across all sectors
resulted in lower volumes. Overall construction activity weakened further as economic conditions continued to worsen and credit
availability became extremely scarce. Our operations in the United States represented approximately 19% of our total net sales in 2009
in Peso terms, before eliminations resulting from consolidation. Our average sales price of domestic cement from our operations in the
U.S. decreased approximately 6% in Dollar terms in 2009 compared to 2008, and the average sales price of ready-mix concrete
decreased approximately 8% in Dollar terms over the same period. The decreases in average prices were primarily due to decreased
demand as a result of recessionary economic conditions and tight credit availability. For the year ended December 31, 2009, cement
represented approximately 29%, ready-mix concrete approximately 29% and our aggregates and other businesses approximately 42%
of our net sales for our operations in the United States before intra-sector eliminations within the segment and before eliminations
from consolidation, as applicable.
As a result of the decreases in cement and ready-mix concrete sales volumes and average sales prices, net sales from our
operations in the United States, in Dollar terms, decreased approximately 40% in 2009 compared to 2008. The decrease in net sales in
the United States during 2009 compared to 2008 resulted from weaker demand in our U.S. markets, the recessionary economic
conditions and tight credit availability.
Spain
Our domestic cement sales volumes from our operations in Spain decreased approximately 40% in 2009 compared to 2008,
while ready-mix concrete sales volumes decreased approximately 44% during the same period. The decreases in domestic cement and
ready-mix concrete sales volumes were the result of the country’s continued challenging economic environment. Overall economic
activity continues to worsen and has negatively affected overall cement demand. No particular segment in the construction sector is
experiencing growth. Additionally, infrastructure projects continue to be on hold given the lack of liquidity and overall tighter credit
conditions. Our 2009 net sales from our operations in Spain represented approximately 5% of our total net sales in Peso terms, before
eliminations resulting from consolidation. Our cement export volumes from our operations in Spain, which represented approximately
14% of our cement sales volumes in 2009 from our operations in Spain, increased by approximately 77% in 2009 compared to 2008,
primarily as a result of lower domestic sales and higher export volumes to Africa. Of our total cement export volumes in 2009 from
our operations in Spain, 7% was shipped to Europe and the Middle East, 90% to Africa, and 3% to other countries. Our average
domestic sales price of cement from our operations in Spain decreased approximately 10% in Euro terms in 2009 compared to 2008,
and the average price of ready-mix concrete decreased approximately 8% in Euro terms over the same period. For the year ended
December 31, 2009, cement represented approximately 59%, ready-mix concrete approximately 22% and our aggregates and other
businesses approximately 19% of net sales for our operations in Spain before intra-sector eliminations within the segment and before
eliminations from consolidation, as applicable.
As a result of the decreases in domestic cement sales volumes and ready-mix concrete sales volumes, our net sales from our
operations in Spain, in Euro terms, decreased approximately 44% in 2009 compared to 2008.
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