building a STRONGER foundation - Cemex

On December 26, 2008, we sold our Canary Islands operations (consisting of cement and ready-mix concrete assets in
Tenerife and 50% of the shares in two joint-ventures, Cementos Especiales de las Islas, S.A. (CEISA) and Inprocoi, S.L.)
to several Spanish subsidiaries of Cimpor Cimentos de Portugal SGPS, S.A. for €162 million (approximately U.S.$227
million).
During 2008, we sold in several transactions our operations in Italy consisting of four cement grinding mill facilities for
an aggregate amount of approximately €148 million (approximately U.S.$210 million), generating a gain of
approximately €8 million (U.S.$12 million), which was recognized within “Other expenses, net.”
On January 11, 2008, in connection with the assets acquired from Rinker, and as part of our agreements with Ready Mix
USA, Inc., or Ready Mix USA, CEMEX contributed and sold to Ready Mix USA LLC, our ready-mix concrete joint
venture with Ready Mix USA, certain assets located in Georgia, Tennessee and Virginia, which had a fair value of
approximately U.S.$437 million. We received U.S.$120 million in cash for the assets sold to Ready Mix USA LLC, and
the remaining assets were treated as a U.S.$260 million contribution by us to Ready Mix USA LLC. As part of the same
transaction, Ready Mix USA contributed U.S.$125 million in cash to Ready Mix USA LLC, which in turn received bank
loans of U.S.$135 million. Ready Mix USA LLC made a special distribution in cash to us of U.S.$135 million. Ready
Mix USA manages all the assets acquired. Following this transaction, Ready Mix USA LLC continues to be owned
50.01% by Ready Mix USA and 49.99% by CEMEX.
Selected Consolidated Statement of Operations Data
The following table sets forth our selected consolidated statement of operations data for each of the three years ended
December 31, 2008, 2009 and 2010 expressed as a percentage of net sales.
86
2008
Year Ended
December 31,
2009 2010
Net sales............................................................................................................. 100.0 100.0 100.0
Cost of sales....................................................................................................... (68.2) (70.6) (72.0)
Gross profit .............................................................................................. 31.8 29.4 28.0
Administrative and selling expenses ........................................................ (14.3) (14.5) (14.5)
Distribution expenses ............................................................................... (5.9) (6.9) (7.4)
Total operating expenses ................................................................................... (20.2) (21.4) (21.9)
Operating income............................................................................................... 11.6 8.0 6.1
Other expenses, net............................................................................................ (9.5) (2.8) (3.7)
Comprehensive financing result:
Financial expense..................................................................................... (4.6) (6.8) (9.1)
Financial income ...................................................................................... 0.2 0.2 0.2
2008
Year Ended
December 31,
2009 2010
Results from financial instruments................................................................. (6.7) (1.1) (0.5)
Foreign exchange result ................................................................................. (1.7) (0.1) 0.5
Monetary position result................................................................................. 0.2 0.2 0.1
Net comprehensive financing result...................................................... (12.6) (7.6) (8.8)
Equity in income of associates................................................................................. 0.4 0.1 (0.3)
Loss before income tax............................................................................................ (10.1) (2.3) (6.7)
Income taxes ............................................................................................................ 10.2 5.3 (2.5)
Income (loss) before discontinued operations ......................................................... 0.1 3.0 (9.2)
Discontinued operations .......................................................................................... 0.9 (2.2) —
Consolidated net income (loss)................................................................................ 1.0 0.8 (9.2)