Cemex 1997 Annual Report Download - page 4

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Consistent
growth and
returns
If there is one thing that distinguishes us
from our competitors, it is our highly adaptive
management culture and philosophy. This is
the driving force behind our ability to pro-
vide consistent growth and returns to you,
our employees, partners and customers.
This learning culture stems from our
emerging-market focus. Coming from an
emerging economy presents its own set of
distinct challenges. We constantly have to
look for new ways to capitalize on these
countries’ seemingly limitless range of prob-
lems and opportunities.
Our passion for change is, perhaps, best
exemplified by our ability to rapidly realize
the benefits of integration and efficiency. This
is where our management approach and our
investment in information technology and
skills have reaped significant returns. Most
recently, our multinational Post-Merger-
Integration (PMI) team expanded Colombia’s
cash flow to US$135 million in 1997, achieving
over US$30 million in recurring cost savings.
Quite simply, the creation of long-term
shareholder value is a must. With this in
mind, our goal is to achieve higher returns
through a mix of organic growth, efficiency
and selective external investments.
TO OUR STOCKHOLDERS
2
2.8%
22.1%
88-92
92-97
Margin volatility*
Consolidated stability
CEMEXÕ geographic diversification
has reduced the volatility of cash
flow margins.
ÒInternational diversification
has diversified cash flows. É
As a result of this broad diver-
sification, CEMEX has succeeded
in reducing the volatility of its
earnings. Reaching such levels
of diversification affords CEMEX
the financial flexibility to with-
stand individual market fluctu-
ations while continuing to capi-
talize on other expansion
opportunities É .Ó
Scott McKee, J.P. Morgan,
1/9/98 Credit Research Report
*Annual standard deviation of cash flow mar-
gins. Expressed as a percentage of the underly-
ing average cash flow margins.
After diversification
Before diversification