building a STRONGER foundation - Cemex

Mexico
Our domestic cement sales volumes from our operations in Mexico decreased approximately 4% in 2010 compared to 2009, and
ready-mix concrete sales volumes decreased approximately 4% during the same period. Our net sales from our operations in Mexico
represented approximately 23% of our total net sales in 2010, in Peso terms, before eliminations resulting from consolidation. The
decreases in domestic cement and ready-mix concrete sales volumes were primarily attributable to a modest decline in demand from
the formal residential construction sector and the self-construction sector in 2010. Investment in cement-intensive infrastructure
projects contracted in 2010, and demand from the industrial and commercial sectors decreased, primarily during the second half of
2010. Our cement export volumes of our operations in Mexico, which represented approximately 3% of our Mexican cement sales
volumes in 2010, increased approximately 6% in 2010 compared to 2009, primarily as a result of higher export volumes to the South
America region. Of our total cement export volumes during 2010 of our operations in Mexico, 18% was shipped to the United States,
68% to Central America and the Caribbean and 14% to South America. Our average domestic sales price of cement for our operations
in Mexico remained flat in Peso terms in 2010 compared to 2009, and the average sales price of ready-mix concrete increased
approximately 3% in Peso terms over the same period. For the year ended December 31, 2010, cement represented approximately
54%, ready-mix concrete approximately 22% and our aggregates and other businesses approximately 24% of our net sales for our
operations in Mexico before intra-sector eliminations within the segment and before eliminations from consolidation, as applicable.
As a result of the increases in ready-mix concrete average sales prices, partially offset by the decrease in domestic cement and
ready-mix concrete sales volumes, our net sales in Mexico, in Peso terms, increased slightly in 2010 compared to 2009.
United States
Our domestic cement sales volumes from our operations in the U.S., which include cement purchased from our other operations,
remained flat in 2010 compared to 2009, and ready-mix concrete sales volumes decreased approximately 7% during the same period.
The decreases in our ready-mix concrete sales volumes of our operations in the U.S. resulted primarily from the slower than expected
economic recovery, slower job creation, reduced consumer confidence and weaker infrastructure spending. Also, industrial-andcommercial
construction sector activity remained depressed. Our United States operations represented approximately 17% of our total
net sales in 2010 in Peso terms, before eliminations resulting from consolidation. Our average sales price of domestic cement of our
operations in the United States decreased approximately 8% in Dollar terms in 2010 compared to 2009, and the average sales price of
ready-mix concrete decreased approximately 11% in Dollar terms over the same period. For the year ended December 31, 2010,
cement represented approximately 31%, ready-mix concrete approximately 27% and our aggregates and other businesses
approximately 42% of our net sales for our operations in the United States before intra-sector eliminations within the segment and
before eliminations from consolidation, as applicable.
As a result of the decreases in domestic cement and ready-mix concrete average sales prices and ready-mix concrete sales
volumes, net sales from our United States operations, in Dollar terms, decreased approximately 12% in 2010 compared to 2009.
Spain
Our domestic cement sales volumes from our operations in Spain decreased approximately 22% in 2010 compared to 2009,
while ready-mix concrete sales volumes decreased approximately 20% during the same period. The decreases in domestic cement and
ready-mix concrete sales volumes were the result of significantly weaker demand in all of our regions, especially Levante and Centro.
Overall economic activity continues to worsen and has negatively affected overall domestic cement demand. No particular segment in
the construction sector is experiencing growth. Additionally, infrastructure projects continue to be on hold given the lack of liquidity
and overall tighter credit conditions. Our 2010 net sales of our operations in Spain represented approximately 4% of our total net sales
in Peso terms, before eliminations resulting from consolidation. Our cement export volumes of our operations in Spain, which
represented approximately 31% of our cement sales volumes in 2010 in Spain, increased by approximately 80% in 2010 compared to
2009, primarily as a result of higher export volumes to Africa and Europe. Of our total cement export volumes in 2010 of our
operations in Spain, 10% was shipped to Europe and the Middle East, 89% to Africa, and 1% to other countries. Our average domestic
sales price of cement of our operations in Spain decreased approximately 7% in Euro terms in 2010 compared to 2009, and the
average price of ready-mix concrete decreased approximately 9% in Euro terms over the same period. For the year ended
December 31, 2010, cement represented approximately 61%, ready-mix concrete approximately 21% and our aggregates and other
businesses approximately 18% of net sales for our operations in Spain before intra-sector eliminations within the segment and before
eliminations from consolidation, as applicable.
As a result of the decreases in domestic cement and ready-mix concrete sales volumes, our net sales in Spain, in Euro terms,
decreased approximately 20% in 2010 compared to 2009.
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