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