Cemex 2009 Annual Report Download - page 7

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As a result of our efforts, we are emerging from the crisis leaner, more agile, and
more focused on our core business operations. We are in a better position to take
advantage of the recovery of the global economy, when it comes.
As we look to the future, we expect the key drivers of demand will ultimately
come from the implementation of approximately US$1 trillion of government
infrastructure programs in our main markets, positive demographic trends, pent-
up demand for housing, and underlying economic recovery, particularly in the
United States.
The steep downturn of the U.S. construction market underscores the upside
potential of the recovery. Because the contraction was so dramatic—our pro forma
cement volumes have dropped by more than 50% from 2006 through 2009—we
expect that the U.S. market will provide significant rates of organic growth over
the medium term. Since we have substantial operating leverage in this market, we
expect to deliver accelerating cash flow growth as our volumes recover.
Our near-term priority is to regain our financial flexibility, which is the key to our
long-term success. Thus, we will continue to implement cost-reduction and right-
sizing initiatives, maintain tight discipline on our capital expenditures, and use as
much of our free cash flow as possible to reduce debt. We will also continue to
make extra efforts to anticipate and meet our customers’ changing demands and
to foster our company’s sustainable development.
Moving forward, I am confident that we are well positioned for the eventual upturn
in the business cycle. Our products are fundamental for economic growth, and we
are in the right markets with the right assets. Most importantly, the way we have
managed the crisis has reinforced our relationship with key stakeholders and proven
that CEMEX management and employees are among the best in our industry.
On behalf of the board and our management team, I thank our stockholders, em-
ployees, customers, banks, note holders, and suppliers for their continued support.
Sincerely,
Lorenzo H. Zambrano
Chairman of the Board and
Chief Executive Officer
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