building a STRONGER foundation - Cemex
building a STRONGER foundation - Cemex
building a STRONGER foundation - Cemex
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Geographic Segment<br />
89<br />
Variations in<br />
Local<br />
Currency(1)<br />
Approximate<br />
Currency<br />
Fluctuations,<br />
Net of<br />
Inflation<br />
Effects<br />
Variations<br />
in Mexican<br />
Operating Income For<br />
the Year Ended<br />
December 31,<br />
Pesos 2009 2010<br />
(in millions of Pesos)<br />
North America<br />
Mexico .............................................................................................. -11% — -11% Ps13,965 Ps12,380<br />
United States(2)(3)............................................................................ -40% +17% -23% (7,290) (8,990)<br />
Europe<br />
Spain ................................................................................................. -33% -8% -41% 1,667 984<br />
United Kingdom................................................................................ +31% -22% +9% (859) (780)<br />
Germany............................................................................................ -67% -29% -96% 658 26<br />
France................................................................................................ -66% -6% -72% 786 221<br />
Rest of Europe(4).............................................................................. -46% -13% -59% 976 399<br />
South/Central America and the Caribbean<br />
Colombia........................................................................................... -23% +6% -17% 2,672 2,226<br />
Rest of South/Central America and the Caribbean(5)....................... -16% -4% -20% 2,784 2,222<br />
Africa and Middle East<br />
Egypt................................................................................................. +34% -14% +20% 3,465 4,146<br />
Rest of Africa and the Middle East(6) .............................................. -70% -3% -73% 830 228<br />
Asia<br />
Philippines ........................................................................................ -6% -3% -9% 996 909<br />
Rest of Asia(7) .................................................................................. -33% +5% -28% 102 73<br />
Others(8) ........................................................................................... +31% +4% +35% (4,912) (3,201)<br />
Operating income.............................................................................. -32% Ps15,840 Ps10,843<br />
N/A = Not Applicable<br />
(1) For purposes of a geographic segment consisting of a region, the net sales and operating income data in local currency terms for<br />
each individual country within the region are first translated into Dollar terms at the exchange rates in effect as of the end of the<br />
reporting period. Variations for a region represent the weighted average change in Dollar terms based on net sales and operating<br />
income for the region.<br />
(2) On June 15, 2009, we sold three quarries (located in Nebraska, Wyoming and Utah) and our 49% joint venture interest in the<br />
operations of a quarry located in Granite Canyon, Wyoming.<br />
(3) On August 27, 2010, we sold seven aggregates quarries, three resale aggregate distribution centers and one concrete block<br />
manufacturing facility all located in Kentucky.<br />
(4) Our Rest of Europe segment includes our operations in Croatia, Poland, Latvia, the Czech Republic, Ireland, Austria, Hungary,<br />
Finland, Norway and Sweden, as well as our other European assets.<br />
(5) Our Rest of South/Central America and the Caribbean segment includes our operations in Costa Rica, Panama, the Dominican<br />
Republic, Nicaragua, Puerto Rico, Jamaica and Argentina and our trading activities in the Caribbean.<br />
(6) Our Rest of Africa and the Middle East segment includes our operations in the UAE and Israel.<br />
(7) Our Rest of Asia segment includes our operations in Malaysia, Thailand, Bangladesh, China and other assets in the Asian<br />
region.<br />
(8) Our Others segment includes our worldwide maritime trade operations, our information solutions company and other minor<br />
subsidiaries.<br />
Net sales. Our consolidated net sales decreased approximately 10%, from approximately Ps197.8 billion in 2009 to Ps178.2<br />
billion in 2010. The decrease in net sales was primarily attributable to lower volumes and prices in our main markets. The<br />
infrastructure and residential sectors continue to be the main drivers of demand in most of our markets.