Cemex 2012 Annual Report Download - page 31

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In Panama, our operations’ domestic gray cement vol-
umes increased 32% in 2012. The infrastructure sec-
tor was the main contributor to cement consumption
during the year. There were many projects driving this
growth such as the ongoing Canal expansion and the
Panama City metro project. The industrial-and-com-
mercial sector also grew during 2012, mainly from
the construction of oce buildings, hotels, shopping
centers, and stores.
Asia
Our regional operations’ net sales increased 7% year
over year to US$542 million, while our operating EBIT-
DA grew 21% to US$99 million in 2012. As a whole,
our regional domestic gray cement volumes increased
12%, while our ready-mix concrete and aggregates vol-
umes declined 18% and 54%, respectively, for the year.
In the Philippines, our operations’ domestic gray ce-
ment volumes increased 15% in 2012. Sales volumes
for the year benefited from the recovery of public
infrastructure spending, especially on the maintenance
of roads and highways. The residential sector showed
continued growth, supported by strong remittances. In
addition, the industrial-and-commercial sector exhibited
growth for the year.
Trading
Our global trading network is one of the largest in
the industry. Our trading operations help us to opti-
mize our worldwide production capacity, deliver ex-
cess cement to where it is most needed, and explore
new markets without the necessity of making im-
mediate capital investments. Our worldwide network
of strategically located marine terminals and broad
third-party customer base also provide us with the
added flexibility to fully place contracted supplies in
an optimal way.
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
investments.
million metric tons,
our trading volume of
cementitous materials
8.8
In 2012, we had trading relationships in 106 countries.
Our trading volume totaled almost 8.8 million metric
tons of cementitious materials, including approximately
8.0 million metric tons of cement and clinker. We also
maintained a sizeable trading position of 0.8 million
metric tons of granulated blast furnace slag, a non-
clinker cementitious material.
In 2012, our trading network continued to rapidly re-
direct 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 re-
cent years, account for a large share of our total import
supply cost. However, we have obtained significant
savings by timely contracting maritime transporta-
tion and by using our own and chartered fleets—which
transported approximately 9% of our cement and clin-
ker import volume in 2012.
In addition, we provide freight service to third par-
ties when we have spare fleet capacity. This not only
provides us with valuable shipping market information,
but also generates additional profit for our operations.
CEMEX Trading, Spain
31
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