Cemex

Cemex' turnover declined by 3.3% in 2010 to US$14,069.4m, while in Mexican peso terms the turnover came down by a more pronounced 9.9%. The EBITDA was down by 12.9% to US$2313.8m and the trading profit fell by 26.5% to US$855.8m. The net charge interest rose by 22.9% to US$1252.06m, but the cost of 'other' expenses was reduced though the pre-tax loss still jumped by 156.5% to US$904.1m. Rather than a tax credit, as in the previous year, a US$355.9m tax charge had to be borne, giving a net loss for the year of US$1303.6m compared with a US$103.6m net profit in 2009. Net debt was reduced by 7.5% to US$17,729m, giving a gearing level of 118.5%. Capital expenditure was 14.6% lower at US$549m. Group cement shipments edged ahead by 0.9% to 65.65Mt, but sales of aggregates were down by 5.7% to 158.46Mt and ready-mixed concrete deliveries declined by 5.4% to 51.00Mm³.

Mexican turnover rose by 10.2% to US$3434.8m, though in local currency the increase was a more modest 3%, and the EBITDA was off by 0.6% to US$1152.8m, though on an underlying basis the decline was more noticeable at 7%. Last year 49.8% of the group EBITDA was still generated in Mexico. Domestic cement deliveries declined by 4% as housebuilding volume came off by 1.5% and commercial and industrial building activity by 4%. Aggregates shipments were off by 1%, but did improve by 30% in the final quarter, while ready mixed concrete deliveries declined by 4%. Local currency prices were largely unchanged in cement, but improved by 11% in aggregates and by 3% in ready-mixed concrete.

US turnover declined by 11.8% to US$2490.9m and the EBITDA dropped into a US$44.9m loss compared with a US$142.80m profit, and the trading loss widened by 43.6% to US$655.4m. In spite of poor weather in December, the group did a bit better than expected and the under-spending to date of public funds suggest better volumes in 2011. Cement deliveries were unchanged in the year, while average prices declined by some 8%. Deliveries of aggregates were off by some 5% and the average price achieved declined by 4%, while in ready-mixed concrete, the volume came down by 7% and prices deteriorated by 11%.

Across Europe, turnover came down by 10.6% to US$4793.2m and the EBITDA fell by 27.1% to US$434.2m, with cement volumes declining by 8% and prices by 5%. Cemex's European operations managed to achieve a record usage of alternative fuels during 2010. Aggregates volumes came off by a similar percentage, but prices did improve by 1%. In ready-mixed concrete, volumes came down by 7% but prices only came off by 1%. Spain deteriorated further, with cement deliveries falling by 22%, ready-mixed concrete deliveries by 20% and aggregates volume by 14%. Spanish prices declined by 7% in cement, and by 9% in ready-mixed concrete, but improved by 2% in aggregates. British group cement deliveries improved by 1%, but aggregates volumes came down by 2% and ready-mixed concrete deliveries by 3%. Prices declined by 4% in both cement and aggregates. German domestic cement deliveries were off by 2% and prices by 1%, while in aggregates volumes came off by 7% but prices improved by 3% and ready-mixed concrete volumes dropped by 10% while prices were off by just 1%. In Poland, cement volumes were off by 1% and prices by 4%, but in aggregates volumes rose by 7% and prices by 1%, while in ready-mixed concrete volumes rose by 10% though prices dropped by a similar percentage. In France, aggregates deliveries declined by 4% but the average price improved by 3% and ready-mixed concrete volume was up by 1% on a price that came off by 1%.

In South America, Central America and Caribbean, Cemex produced a turnover just 0.1% lower at US$1443.8m, but the EBITDA was down by 9.9% to US$460.2m. This still made the region the second largest profit earner for the group behind Mexico. Cement deliveries declined by 3% and prices were 1% lower, with aggregates volume up 40%, but prices being down by 9%. In ready-mixed concrete, volumes came off by 2% and prices by 6%. In Colombia, now the largest market, cement volume rose by 5%, but prices were off by 6%, while in aggregates prices came off by 13% as volumes declined by 5%.

The African and the Middle Eastern operations saw turnover decline by 1.3% to US$1034.8m, but the EBITDA rose by 11.0% to US$369.5m. While cement deliveries in the region were off by 1% and ready-mixed concrete deliveries by 4%, the aggregates volume rose by 7%. Egypt is the largest single contributor and the growth in Egypt offset the volume reductions in the United Arab Emirates. The Egyptian cement volume rose by 2% and the price improved by 5% in local currency and by 3% in US dollars. Egyptian aggregates and ready-mixed concrete volumes rose by 2% and 11% respectively, while local prices improved by some 3%.

In Asia, turnover rose by 8.8% to US$515.3m and the EBITDA improved by 6.9% to US$122.6m. Cement volumes increased by 9% last year and prices averaged a 1% increase. In aggregates, volumes rose by 3% and prices by 7%, while in ready-mixed concrete volumes declined by 2%, but prices were 1% higher. In the Philippines, the biggest market, cement deliveries improved by around 8% and prices by 2%.