building a STRONGER foundation - Cemex
building a STRONGER foundation - Cemex
building a STRONGER foundation - Cemex
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
South America, Central America and the Caribbean<br />
Our operating income from our operations in South America, Central America and the Caribbean decreased approximately 2%,<br />
from Ps5.5 billion in 2008 to Ps5.4 billion in 2009 in Peso terms. The decrease in operating income was primarily attributable to the<br />
decreases in domestic cement and ready-mix concrete sales volumes, which was primarily attributable to lower economic activity and<br />
the consolidation of the results of operations from our operations in Venezuela for the seven-month period ended July 31, 2008 (prior<br />
to its expropriation by the Venezuelan government).<br />
In Colombia, operating income increased approximately 26%, from Ps2.1 billion in 2008 to Ps2.6 billion in 2009 in Peso terms.<br />
The increase resulted primarily from our cost reduction efforts to adjust our operations to the existing market conditions.<br />
Africa and the Middle East<br />
Our operating income from our operations in Africa and the Middle East increased approximately 57%, from Ps2.7 billion in<br />
2008 to Ps4.3 billion in 2009 in Peso terms. The increase in operating income resulted primarily from the increase in domestic cement<br />
and ready-mix concrete sales prices and sales volumes in our operations in Egypt.<br />
Operating income from our operations in Egypt increased approximately 59%, from Ps2.1 billion in 2008 to Ps3.5 billion in<br />
2009, primarily as a result of increases in the average domestic cement and ready-mix concrete sales prices and sales volumes. Our<br />
operations in the Rest of Africa and the Middle East increased approximately 49%, from an operating income of Ps558 million in<br />
2008 to an operating income of Ps830 million in 2009 in Peso terms. The increase in operating income in the Rest of Africa and the<br />
Middle East resulted primarily from a decrease in cost of sales and operating expenses in Israel and UAE.<br />
Asia<br />
Our operating income from our operations in Asia increased approximately 88%, from Ps585 million in 2008 to Ps1.1 billion in<br />
2009 in Peso terms. The increase in operating income resulted primarily from the increase in our net sales of our operations in the<br />
Philippines, while cost of sales remained flat and operating expenses decreased 8% in Dollar terms as a result of our global costreduction<br />
efforts.<br />
Our operating income from our operations in the Philippines increased approximately 89%, from Ps528 million in 2008 to<br />
Ps996 million in 2009 in Peso terms.<br />
On October 1, 2009, we completed the sale of our operations in Australia to a subsidiary of Holcim Ltd. for approximately<br />
$2.02 billion Australian Dollars (approximately U.S.$1.7 billion). Our consolidated statement of operations present the results of our<br />
operations in Australia, net of income tax, for the nine-month period ended September 30, 2009 and the twelve-month period ended<br />
December 31, 2008 in a single line item as “Discontinued operations.” Accordingly, our consolidated statement of cash flows for the<br />
year ended December 31, 2008 was reclassified. See note 3B to our consolidated financial statements included elsewhere in this<br />
annual report.<br />
Others<br />
Operating loss in our Others segment increased approximately 101%, from a loss of Ps2.4 billion in 2008 to a loss of Ps4.9<br />
billion in 2009 in Peso terms, primarily explained by a decrease in operating income of 83% in our worldwide cement, clinker and<br />
slag trading operations.<br />
Other Expenses, Net. Our other expenses, net, decreased significantly, from Ps21.4 billion in 2008 to Ps5.5 billion in 2009,<br />
primarily due to the 2008 impairment losses of goodwill and other long-lived assets in the amount of approximately Ps21.1 billion as<br />
described in notes 10 and 11B to our consolidated financial statements included elsewhere in this annual report.<br />
The most significant items included under this caption in 2008 and 2009 are as follows:<br />
107<br />
2008 2009<br />
Impairment losses.................................................................................... Ps<br />
(in millions of Pesos)<br />
(21,125) Ps (889)<br />
Restructuring costs.................................................................................. (3,141) (1,100)<br />
Charitable contributions.......................................................................... (174) (264)<br />
Current and deferred ESPS ..................................................................... 2,283 (8)<br />
Results from sales of assets and others, net............................................. 754 (3,268)<br />
Ps (21,403) Ps (5,529)