building a STRONGER foundation - Cemex

As a result of the decreases in domestic cement and ready-mix concrete sales prices and sales volumes, net sales in the Rest of
Europe, in Euro terms, decreased approximately 29% in 2009 compared to 2008.
South America, Central America and the Caribbean
Our operations in South America, Central America and the Caribbean in 2009 consisted of our operations in Colombia, Costa
Rica, the Dominican Republic, Panama, Nicaragua, Puerto Rico, Jamaica and Argentina, as well as several cement terminals and other
assets in other Caribbean countries and our trading operations in the Caribbean region. Most of these trading operations consist of the
resale in the Caribbean region of cement produced by our operations in Mexico.
Our domestic cement sales volumes from our operations in South America, Central America and the Caribbean decreased
approximately 30% in 2009 compared to 2008, and ready-mix concrete sales volumes decreased approximately 34% over the same
period. The decrease in domestic cement and ready-mix concrete sales volumes is primarily attributable to lower economic activity
and the consolidation of the results of operations from our operations in Venezuela for the seven-month period ended July 31, 2008
(prior to its expropriation by the Venezuelan government). For the year ended December 31, 2009, our operations in South America,
Central America and the Caribbean represented approximately 10% of our total net sales in Peso terms, before eliminations resulting
from consolidation. Our average domestic sales price of cement from our operations in South America, Central America and the
Caribbean increased approximately 8% in Dollar terms in 2009 compared to 2008, while the average sales price of ready-mix concrete
decreased approximately 8% in Dollar terms over the same period. As a result of the decreases in domestic cement and ready-mix
concrete sales volumes, net sales in our operations in South America, Central America and the Caribbean, in Dollar terms, decreased
approximately 32% in 2009 compared to 2008. For the year ended December 31, 2009, cement represented approximately 71%,
ready-mix concrete approximately 22% and our aggregates and other businesses approximately 7% of net sales for our operations in
South America, Central America and the Caribbean before intra-sector eliminations within the segment and before eliminations from
consolidation, as applicable.
Our cement volumes from our operations in Colombia decreased approximately 6% in 2009 compared to 2008, and ready-mix
concrete sales volumes decreased approximately 17% during the same period. The decreases in sales volumes resulted primarily from
lower economic activity, especially in the self-construction and low income sectors. For the year ended December 31, 2009, Colombia
represented approximately 3% of our total net sales in Peso terms, before eliminations resulting from consolidation. Our average
domestic sales price of cement from our operations in Colombia increased approximately 10% in Colombian Peso terms in 2009
compared to 2008, while the average price of ready-mix concrete decreased approximately 6% in Colombian Peso terms over the
same period. 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, net sales of our operations in Colombia, in Colombian Peso terms, decreased
approximately 9% in 2009 compared to 2008. For the year ended December 31, 2009, cement represented approximately 65%, readymix
concrete approximately 25% and our aggregates and other businesses approximately 10% of net sales for our operations in
Colombia before intra-sector eliminations within the segment and before eliminations from consolidation, as applicable.
Our cement volumes from our operations in our Rest of South and Central America and the Caribbean segment decreased
approximately 40% in 2009 compared to 2008, and ready-mix concrete sales volumes decreased approximately 43% during the same
period, mainly as a result of the expropriation of CEMEX Venezuela in 2008. For the year ended December 31, 2008, our net sales
from our operations in the Rest of South and Central America and the Caribbean included the results of operations from our operations
in Venezuela for the seven-month period ended July 31, 2008 (prior to its expropriation by the Venezuelan government). For the year
ended December 31, 2009, the Rest of South and Central America and the Caribbean represented approximately 7% of our total net
sales in Peso terms, before eliminations resulting from consolidation. Our average domestic sales price of cement from our operations
in the Rest of South and Central America and the Caribbean increased approximately 8% in Dollar terms in 2009 compared to 2008,
and the average sales price of ready-mix concrete increased approximately 6% in Dollar terms over the same period. For these
reasons, net sales of our operations in the Rest of South and Central America and the Caribbean, in Dollar terms, decreased
approximately 39% in 2009 compared to 2008. For the year ended December 31, 2009, cement represented approximately 74%,
ready-mix concrete approximately 21% and our other businesses approximately 5% of our net sales of our operations in the Rest of
South and Central America and the Caribbean 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 mentioned above, revenues in our
operations in South America, Central America and the Caribbean, in Dollar terms, decreased approximately 32% in 2009 compared to
2008.
103