building a STRONGER foundation - Cemex

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