Cemex 2012 Annual Report Download - page 28

Download and view the complete annual report

Please find page 28 of the 2012 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 160

  • 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
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

Global
review of
operations
Mexico
In 2012, our Mexican operations’ net sales decreased
3% year over year to US$3.4 billion, and operating
EBITDA remained flat at US$1.2 billion. Our domestic
gray cement and ready-mix concrete volumes de-
creased 1% and 2%, respectively, while our aggregates
volumes increased 2% for the year.
Construction activity for the year was driven mainly
by robust performance from the non-residential sec-
tor. In the formal residential sector, homebuilders
faced working capital constraints, which translated
into weak cement demand. Lower than expected
government spending adversely impacted the infra-
structure sector.
United States
Our U.S. operations’ net sales increased 17% year over
year to US$3.1 billion in 2012. Operating EBITDA rose
to US$43 million, from a loss of US$89 million a year
ago. Our U.S. operations’ domestic gray cement, ready-
mix concrete, and aggregates volumes increased 14%,
20%, and 13%, respectively, for 2012. On a like-to-like
basis for the ongoing operations, ready-mix concrete
and aggregates volumes increased 14% and 12%, re-
spectively, for the year.
Sales volumes for the year reflected improved demand
in most of our markets and regions. Residential con-
struction sector activity continued its positive trend,
supported by favorable dynamics in the housing mar-
ket. The industrial-and-commercial sector performed
positively, driven by the manufacturing, lodging, oce,
and commercial segments. The infrastructure sector
displayed the slowest growth of the three sectors in
2012, resulting from the uncertainty surrounding the
reauthorization of the highway bill earlier in the year,
as well as the concern regarding the potential fiscal cliff.
Northern Europe
Our Northern European operations’ net sales decreased
13% year over year to US$4.1 billion, and operating
EBITDA declined 2% to US$404 million for 2012. Our
Northern European operations’ domestic gray cement,
ready-mix concrete, and aggregates volumes decreased
13%, 8%, and 6%, respectively, for the year.
Our UK operations’ domestic gray cement, ready-mix
concrete, and aggregates volumes decreased 7%, 12%,
and 11%, respectively, in 2012. The economic slow-
down, as well as cuts in public spending and lending
restrictions, negatively affected construction activity
for the year. In addition, adverse weather conditions,
including severe flooding in some areas, detrimentally
impacted demand during the first half of the year.
In France, our operations’ ready-mix concrete and ag-
gregates volumes decreased 5% and 3%, respectively,
for 2012. The economic slowdown, as well as adverse
weather conditions, negatively affected the country’s
construction activity for the year. Diculty obtaining
household credit and the elimination of tax incentives
led to a decline in the residential sector during the sec-
ond half of the year. The infrastructure sector’s perfor-
mance remained stable, supported by ongoing projects,
17%
14%
growth in net sales
of our U.S. operations
increase in U.S. do-
mestic gray cement
volumes
28
< previous I contents I next >