Cemex 2012 Annual Report Download - page 30

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infrastructure spending at very low levels. Economic
uncertainty, high unemployment, limited credit avail-
ability, and high inventories negatively affected the
performance of the residential sector. The industrial-
and-commercial sector was adversely impacted by
weak domestic demand and tight credit. We continue
to export from Spain to other countries to mitigate
the decline in domestic volumes. During 2012, these
exports accounted for about a third of our volumes.
In Egypt, our operations’ domestic gray cement
volumes decreased 10% in 2012. The decline in our
volumes reflects the increase in cement capacity in the
country. The informal residential sector was the main
driver of demand for the year. Construction activity
from the industrial-and-commercial sector remained
stagnant. The challenging macroeconomic and political
environment led to minimal infrastructure spending.
South, Central America and the Caribbean
In 2012, our net sales in the region grew 20% to
US$2.1 billion, while operating EBITDA increased 43%
to US$703 million. As a whole, our regional opera-
tions’ domestic gray cement, ready-mix concrete, and
aggregates volumes improved 6%, 5%, and 6%, respec-
tively, for the year.
Our Colombian operations’ domestic gray cement
volumes increased 5% in 2012. Construction activ-
ity for the year was driven by the residential sector,
which benefited from stable interest rates, controlled
inflation, and favorable economic conditions. The
industrial-and-commercial sector saw a recovery in
building permits during the second half of the year.
The infrastructure sector continued as the most im-
portant driver of growth for the country.
CEMENT PRODUCTION CEMENT CEMENT LAND
CAPACITY (MILLION PLANTS PLANTS READY-MIX AGGREGATES DISTRIBUTION MARINE
METRIC TONS/YEAR) CONTROLLED MINORITY PART. PLANTS QUARRIES CENTERS TERMINALS
Mexico 29.3 15 3 323 16 78 7
United States 17.1 13 5 421 74 43 4
Northern Europe1 11.9 7 1 838 222 39 24
Mediterranean2 12.0 7 3 121 17 23 11
South, Central America and
the Caribbean3 18.8 12 0 179 38 25 19
Asia4 5.7 3 0 17 4 13 4
Total 94.8 57 12 1,899 371 221 69
as of December 31, 2012
1 Includes operations in Austria, Czech Republic,
Finland, France, Germany, Hungary, Ireland,
Latvia, Lithuania, Norway, Poland, Sweden, and
the United Kingdom
2 Includes operations in Croatia, Egypt, Israel,
Spain, and the United Arab Emirates
3 Includes operations in Argentina, Colombia,
Costa Rica, Dominican Republic, El Salvador,
Guatemala, Nicaragua, Panama, Peru, Puerto
Rico, as well as other operations in the
Caribbean region
4 Includes operations in Bangladesh, China,
Malaysia, the Philippines, and Thailand
Global capacity
growth in operating
EBITDA in our South,
Central America and
the Caribbean region
43%
The Point Residential Building, Panama
30
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