Cemex 1997 Annual Report Download - page 41

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35
Operating Cash Flow
Operating Cash Flow was Bs. 102.180 billion for the
year with a margin of 43.8%. In dollar terms, oper-
ating cash flow grew 29% to US$202 million.
Operating cash flow before the cost of sales restate-
ment (a non-monetary item) grew 6% and reached
Bs. 108.725 billion, or US$215 million.
COLOMBIA
Note: The results of CEMEX Colombian operations in
1996 included only Cementos Diamante. For 1997,
Colombia includes the results from the operations of
Cementos Diamante and Samper. For comparative
purposes, the following presents an analysis of the
1997 results compared to pro-forma figures for 1996
(which in both cases include Cementos Diamante
and Samper).
Sales
Cementos Diamante’s Net Sales were $479.217 bil-
lion Colombian pesos (US$370 million), 8% higher,
in constant terms, than the pro-forma figure of
$443.027 billion Colombian pesos recorded for
1996. However, in dollar terms, sales experienced
a slight decrease due to the devaluation of the
Colombian peso versus the US dollar.
Gross Margin
Gross Margin rose to 37.0% in 1997, versus the pro-
forma 32.0% for 1996, thanks to the optimizing
process being implemented. Gross income grew 25%
in actual terms and reached $177.537 billion
Colombian pesos, or US$137 million.
In 1997, operating expenses were 15.0% of sales,
a substantial improvement over the pro-forma
18.0% in 1996.
Operating Margin
As a result, Operating Margin increased from the
pro-forma 14.0% for 1996 to 22.1% in 1997, on
operating income of $105.857 billion Colombian
pesos (US$82 million).
Operating Cash Flow
Operating Cash Flow after charges associated with
operating leases, rose to $174.185 billion Colombian
pesos in 1997, or US$135 million, as compared to
the $119.857 billion pro-forma Colombian pesos
for 1996. EBITD margin improved from 27.1%
pro-forma, in the preceding year, to 36.3% in 1997.
Operating cash flow before these charges was
$177.982 billion Colombian pesos, or US$138
million.
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Better margins
Ibagu plant, Colombia.
Thanks to the optimizing process
being implemented, 1997 operating
expenses were substantially
improved over 1996.
CEMEX Venezuela
93 94 95 96 97
0
200
100
300
500
400
95 96 97
Rising domestic cement
demand led to VenezuelaÕs
1997 sales growth. The eco-
nomic recovery and opera-
tional efficiencies increased
operating cash flow.
Net sales
Operating cash flow
millions of dollars