Building The Next 100 Years
CEMEX 2006 Annual Report and Shareholders Meeting
Monterrey, Mexico, April 26, 2007
"This year is the beginning of CEMEX's second century. The world, as well as our company, is ever more complex. We will certainly face new challenges.
Producing the kind of results to which you have become accustomed will require redoubled effort and reaffirmed commitment."
Lorenzo H. Zambrano
2006 Annual Report Letter to Shareholders
The 2006 Annual Shareholders Meeting focused on last year's positive results, while maintaining a
forward-looking vision for an even more promising, yet challenging, future. In addressing CEMEX´s shareholders,
CEO, Lorenzo H. Zambrano, stated, "We produced good results, confirming the value of our diversification strategy
in a year when the world economy performed unevenly."
Both the 2006 Annual and Sustainability Reports were released at the meeting, and
Mr. Zambrano highlighted other important points during his shareholder message.
These points included the progress made on the integration of new operations in Europe
and the United States, the resulting achievement of key synergies, and the fulfillment
of the 10% return on capital employed expected from the acquisition of RMC.
Shareholders were also informed that CEMEX produced record sales, EBITDA, and free cash
flow in 2006, and regained the financial flexibility to take advantage of new investment opportunities.
The company's 100th anniversary was recognized as a milestone celebration for our
operations worldwide. Most of the presentation was dedicated to a review of our business context,
our results by region, our progress in international trading, our advances in customer service and
product distribution, our growth investments, and importantly, our continuing effort to make good
decisions for a sustainable future-from energy consumption to relationships with our communities.
Mr. Zambrano closed the meeting by expressing his profound pride in everything CEMEX has achieved
to date and his belief that we can and will do even better in the future.
Did you know?
Information available in the 2006 Annual Report
- CEMEX received over 2,600 ideas from our US operations in the "Your Opinion Counts" campaign during 2006.
- Thanks to CEMEX´s restoration efforts, a spent quarry now produces 1,000 metric tons of fruit per year.
- Alternative fuels now comprise 25 percent of the total fuels used in CEMEX´s European cement plants.
- CEMEX´s community offices have served more than 160,000 families through the Patrimonio Hoy program.
In millions of US dollars1, except per-ADS data
| Net sales1 |
18,249 |
15,321 |
19 |
| Operating income |
2,945 18 |
2,487 |
18 |
| EBITDA |
4,138 |
3,557 |
16 |
| Consolidated net income |
2,488 |
2,167 |
15 |
| Earnings per ADR2 |
3.31 |
3.05 |
8 |
| Free cash flow after maintenance capital expenditures |
2,689 |
2,198 |
22 |
| Total assets |
29,972 |
26,763 |
12 |
| Net debt |
5,811 |
8,665 |
(33) |
| Stockholder's equity, majority interest |
12,859 |
9,825 |
31 |
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