Cemex 1997 Annual Report Download - page 42

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36
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
UNITED STATES
Sales
CEMEX USA’s Net Sales rose 7% to US$435 mil-
lion, principally driven by increases in the selling
price of cement and ready-mix, as well as improve-
ment in non-cement operations.
Prices and Volumes
CEMEX USA’s cement sales volume decreased by
3% in 1997 versus 1996, mostly because of distri-
bution problems associated with third-party trans-
portation services which negatively affected sales
volumes in Texas. Nevertheless, ready-mix sales
volume increased 2% during the year, while
aggregates volumes remained flat. The average
realized cement price grew 4% during the year,
while the price of ready-mix increased 1%.
Gross Margin
Gross Margin decreased from 15.3% in 1996 to
13.5% in 1997, on gross income of US$59 mil-
lion, mainly due to volume decreases, the compa-
ny’s sales and markets mix.
ÒCEMEX Ð with satellite links, expert
systems and a computer in every truck
- is confounding old ideas about the
lines that separate the worldÕs info
haves and have-notsÓ
Peter Katel, Wired Magazine, 7/97.
CEMEX Colombia
Although net sales for CEMEXÕ
Colombian operations increased
in constant terms, they decreased
slightly in dollar terms.
The integration program gener-
ated a remarkable increase in
operating efficiencies.
Net sales
EBITD
millions of dollars
CEMEX USA
Cement and ready-mix price
increases fueled CEMEX USAÕs
net sales growth, while operat-
ing cash flow was affected by
decreasing cement sales vol-
umes, the sales and markets
mix.
Net sales
EBITD
millions of dollars