Cemex 2009 Annual Report Download - page 20

GLOBAL REVIEW OF OPERATIONS
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In 2009 our Mexican operations’ net sales were US$3.1
billion, a decrease of 19% compared with those of 2008,
and EBITDA declined 20% to US$1.2 billion.
Cement and ready-mix concrete volumes declined 4%
and 14%, respectively, for the year. The decline re-
flected the challenging macroeconomic environment,
which negatively affected construction sector activity.
The main driver of demand for the year was the infra-
structure sector.
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Our U.S. operations’ net sales decreased 40% year over
year to US$2.8 billion in 2009. EBITDA was US$143 mil-
lion, representing an 80% decline from that in 2008.
Our U.S. operations’ cement, ready-mix concrete, and
aggregates volumes decreased 32%, 38%, and 36%,
respectively, for 2009. Overall construction activity
weakened considerably as a result of the country’s
economic slowdown. The industrial-and-commercial
sector continued its downward trend throughout the
course of the year. Main indicators from the residential
construction sector showed signs of stabilization during
the second half of the year. In the fourth quarter, eco-
nomic stimulus funds began being disbursed, setting
the groundwork for the initiation of new infrastructure-
related projects in 2010.
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Our net sales in Spain decreased 47% year over year to
US$831 million in 2009. EBITDA was US$204 million,
down 56% from that in 2008.
Cement and ready-mix concrete volumes decreased
40% and 44%, respectively, for the year. On a like-to-like
basis, adjusting for the divestitures during 2008, cement
and ready-mix concrete volumes declined 30% and 37%,
respectively, for the year. The country continued to face a
challenging economic environment and tight credit condi-
tions, negatively affecting overall construction activity.
The infrastructure sector was the main driver of demand,
supported by the government’s stimulus plan and fueled
by the initiation of new projects.
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Although our UK operations’ net sales decreased 31%
year over year to US$1.2 billion, our EBITDA increased
62% to US$43 million in 2009.
For the year, cement, ready-mix concrete, and aggregates
volumes decreased 19%, 25%, and 19%, respectively. Con-
struction activity remained muted as a result of the challeng-
ing macroeconomic environment. The infrastructure sector
outperformed all of the other construction sectors, sup-
ported by the initiation of projects under the government’s
stimulus programs. However, this performance did not offset
the declines from other sectors, particularly the private non-
residential and industrial-and-commercial sectors.
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In the rest of our European operations, net sales de-
creased 23% year over year to US$3.3 billion, and EBITDA
declined 34% to US$349 million for 2009. As a whole, our
regional operations’ domestic cement, ready-mix con-
crete, and aggregates volumes decreased 17%, 17%, and
13%, respectively, for the year.
In Germany, our domestic cement volumes decreased
18% for the year. Although there were some indicators
of economic recovery, the overall economic environment
remained difficult. While activity in the non-residential
sector was weak, the residential sector showed signs of
stabilization during the second half of the year. Govern-
ment programs to stimulate infrastructure spending
were the main drivers of demand for building materials.
In France, our ready-mix concrete and aggregates vol-
umes decreased 18% and 16%, respectively, for the year.
Construction activity remained weak as a result of the
challenging macroeconomic environment.
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Our net sales in the region decreased 32% year over year
to US$1.4 billion, and EBITDA declined 25% to US$494
million in 2009. As a whole, our regional operations’
domestic cement, ready-mix concrete, and aggregates
volumes decreased 30%, 34%, and 40%, respectively, for
the year.
Our Colombian operations’ cement volumes decreased
6% for 2009. Weakness in the residential and industrial-
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