Cemex 2009 Annual Report Download - page 22
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and-commercial sectors negatively affected demand for
the year. Nonetheless, infrastructure spending, as part
of the government’s stimulus program, showed modest
growth through public and private investments.
Although net sales from our operations in Africa and the
Middle East declined 2% year over year to US$1.0 billion,
EBITDA increased 12% to US$333 million in 2009. As a
whole, our regional operations’ domestic cement volumes
increased 22%, while our ready-mix concrete and aggre-
gates volumes decreased 14% and 10%, respectively, for
the year.
In Egypt, our operations’ cement volumes grew 13% in
2009. The country’s encouraging business and investment
environment positively affected construction activity during
the year. The positive trends in the informal residential and
infrastructure sectors led to higher demand for building
materials.
Although our regional operations’ net sales declined 4%
year over year to US$474 million, our EBITDA grew 25% to
US$116 million in 2009. As a whole, our regional domestic
cement volumes remained flat, while our ready-mix con-
crete and aggregates volumes decreased 18% and 15%,
respectively, for the year.
In the Philippines, our operations’ cement volumes
increased 9% in 2009. Overall, the primary drivers of
demand for the year were the residential and public infra-
structure sectors, supported by strong remittances and
the government’s stimulus package.
Our global trading network is one of the largest in the
industry. Our trading operations help us to optimize our
worldwide production capacity, deliver excess cement
to where it is most needed, and explore new markets
without the necessity of making immediate capital invest-
ments. Our worldwide network of strategically located
marine terminals and broad third-party customer base also
provide us with the added flexibility to fully place contract-
ed supplies in an optimal way.
In 2009 we had trading relationships in 96 countries. Our
trading volume totaled almost 8.3 million metric tons of
cementitious materials—including approximately 7.3 mil-
lion metric tons of cement and clinker. We also maintained
a sizeable trading position of 1.0 million metric tons of
granulated blast furnace slag, a non-clinker cementitious
material.
In 2009 our trading network continued to rapidly redirect
excess capacity from our operations affected by reduced
local demand. It also enabled us to promptly adjust our
product purchases from third parties in light of declining
cement and clinker import requirements.
Freight rates, which have been extremely volatile in
recent years, account for a large share of our total import
supply cost. However, we have obtained significant sav-
ings by timely contracting maritime transportation and by
using our own and chartered fleets—which transported
approximately 31% of our cement and clinker import
volume in 2009.
In addition, we provide freight service to third parties
when we have spare fleet capacity. This not only provides
us with valuable shipping market information, but also
generates additional profit for our operations.
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