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