Cemex 1999 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 1999 Cemex annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 75

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75

1999 CONSOLIDATED RESULTS
Nineteen ninety-nine was a strong year for CEMEX in terms of oper-
ating performance, financial flexibility, and investments. The consoli-
dated operating performance exceeded the company’s expectations at
the beginning of the year.
Net sales grew 12% during the year compared to 1998, reaching
US$4.828 billion, despite weak performance in CEMEX’s South
American and Asian operations. This increase is attributable to
stronger cement market conditions in the company’s North American
and Europe operations.
Gross profit increased 17% in 1999 versus 1998, to US$2.138 billion.
Gross margin increased to 44.3% in 1999 from 42.2% in 1998, due
primarily to better pricing in most subsidiaries, accompanied by a
decline in energy-related costs.
Selling, general, and administrative expenses totaled US$702 mil-
lion, a 9% increase in dollar terms over 1998, but remained stable as a
percentage of net sales. This was due to the continuing focus on devel-
oping CEMEX’s cement brands and strengthening relationships with
customers and distributors.
Operating income in 1999 increased 22% in dollar terms over 1998,
reaching US$1.436 billion. The operating margin increased to 29.8%
in 1999 from 27.3% in 1998.
30
92
EBITDA MARGIN
40
35
30
25
20
15
10
93 94 95 96 97 98 99
OPERATING MARGIN
Operating and EBITDA margin
percentage
CEMEX's diversification strategy continues to
deliver stable and high operating margins.
Distribution of EBITDA
percentage
Branded cement sales account for a high
percentage of CEMEX's cash flow.
Distribution of sales
percentage
CEMEX is a pure cement and ready-mix play in
the markets it serves.
Cement 76.9
Ready-mix 19.4
Aggregates 2.4
Others 1.3
Cement 90.7
Ready-mix 7.7
Aggregates 1.2
Others 0.4