Key Company Data
CEMEX is a global building materials company that provides high-quality products and reliable service to customers and communities in more than 50 countries throughout the world, and maintains trade relationships in over 100 nations. We work hard to develop and deliver the best solutions in cement, ready-mix, and aggregates...so we can transform ideas into reality.
Key Company Figures
Worldwide Presence (As of December 31, 2015)
- Presence in more than 50 countries worldwide with approximately 43,000 employees
- Annual production capacity of approximately 93 million metric tons of cement
- 2015 annual production levels of 53 million cubic meters of ready-mix concrete and 148 million metric tons of aggregates
- 56 cement plants (plus 12 cement plants with a minority participation), 1,608 ready-mix concrete facilities, 305 aggregate quarries, 242 land-distribution centers, and 61 marine terminals
|Operating earnings before other expenses, net||1,674||1,637||2|
|Controlling interest net income(loss)||75||(507)||N/D|
|Earnings (loss) per ADS||0.06||(0.39)||N/D|
|Free cash flow after maintenance capital expenditure||881||401||120|
In millions of US dollars2, except per-ADS data
1 Based on an average of 1,353 and 1,256 million American Depository Shares (ADSs) for 2015 and 2014, respectively.
2 For the reader's convenience, figures are presented in US dollars. For statements of operations accounts, these figures result from translating the local currency amounts into US dollars at the average exchange rate for the year, which approximates a convenience translation of the Mexican peso results for 2015 and 2014 using the average exchange rates of the year of 15.98 MXN/US$ and 13.37 MXN/US$, respectively. For balance sheet accounts, US dollar figures result from translating the local currency amounts into US dollars at the closing exchange rate for the year, which approximates a convenience translation of the Mexican peso amounts at the end of each year using the end-of-year exchange rate of 17.23 MXN/US$ and 14.74 MXN/US$, respectively.
3 2015 and 2014 figures are presented under IFRS in accordance with our 2015 Audited Consolidated Financial Statements.
To achieve our mission, our strategy is to create value by building and managing a global portfolio of integrated cement, aggregates, ready-mix concrete, and related businesses. We accomplish this by making certain we:
Value our people as our main competitive advantage
Our people are our competitive advantage. That is why we hire the best and the brightest, and we take care of them. Indeed, employee health and safety is our company’s top priority. Ultimately, our goal is to achieve zero injuries each and every day.
We foster our people’s professional growth, helping them to fulfill their career ambitions. To this end, we provide continuous training and development opportunities that enhance our employees’ skills and enable them to work smartly, safely, and effectively. Moreover, we provide our employees with assignments that enhance their personal and professional growth, facilitate the exchange of best practices, and strengthen our shared corporate culture.
We also identify future leaders and foster their development: teaching them, coaching them, and empowering them to succeed. To prepare the leaders who will successfully guide our organization, we offer a portfolio of inter-connected leadership development initiatives.
We further encourage our people to speak up, to provide ideas, and to help solve problems. By truly valuing our people, we advance the culture we strive to achieve at CEMEX.
Help our customers succeed
At CEMEX, our core strategic goal is to become the most customer-oriented company in our industry. To accomplish this, we must continue to get closer to our customers, build lasting relationships, and listen carefully to understand their needs.
With this in mind, we are investing considerable time and effort to maximize our commercial excellence across our worldwide organization. We want CEMEX to be the supplier and partner of choice for our customers—whether global construction companies, governmental entities, or individuals building or expanding their family’s first home. We look to provide them with the most efficient and effective building solutions for their construction project, large or small. To this end, we help our customers succeed by delivering quality products, innovative solutions, and great customer service in all major construction segments, including the residential, commercial, industrial, and infrastructure sectors.
As a solutions-driven company, we continually do more to understand and satisfy our customers’ evolving needs. By constantly asking ourselves: What are the challenges our customers are facing? What success means to them? What are the products they need not just today, but in the future? We are all driven to drill even deeper to solve our customers’ important challenges and ensure that they succeed.
Pursue markets that offer long-term profitability
We do business in markets where we can add value for our employees, our customers, and our shareholders. We will operate only in those markets that offer long-term profitability.
Our geographically diverse portfolio of assets provides us with the opportunity for significant profitable organic growth over the medium to long term. Consequently, we will remain selective and strategic about where we do business, and will not chase growth simply for the sake of growth. We will also continue to optimize our portfolio to ensure that we are in the right businesses in the right markets with the right returns.
Leveraging our global presence and extensive operations worldwide, we will further continue to focus on what we do best: our core cement, aggregates, ready-mix concrete, and related businesses. By managing our core operations as one vertically integrated business, we not only capture a greater portion of the cement value chain, but also get closer to our customers by offering comprehensive building solutions. This strategic focus historically enables us to grow our existing businesses, particularly in high-growth markets and specialized, higher-margin products. We will only venture beyond our core strengths when it is essential to better market our products, and it is aligned with our strategy.
Ensure sustainability is fully embedded in our business
At CEMEX, we ensure sustainability is fully embedded in our business strategy and day-to-day operations. Our goal is to provide building solutions that meet the needs of a resource-constrained world, to minimize the ecological footprint of our operations, and to foster closer relationships with all of our relevant stakeholders.
Among our priorities, we look to take the lead in sustainable construction through the development of products, services, and building solutions for a low-carbon economy. We also actively participate in low-income housing programs and high-scale infrastructure projects.
Moreover, as part of our efforts to reduce our ecological footprint, we increase our use of alternative fuels and raw materials, improve our energy efficiency, and contract renewable power where feasible. Additionally, we optimize air quality, waste management, and recycling; diminish disturbances from noise and dust; and implement biodiversity action plans at our quarries.
Furthermore, we engage our key stakeholders. In particular, we place a top priority on the health and safety of our employees, our contractors, and our communities. We are committed to playing a responsible role in the social and economic development of our local communities, and we collaborate with governments, NGOs, and opinion leaders to anticipate and address emerging social demands.
Alignment with investor interests
Employee stock-ownership plan
To better align our executives’ interests with those of our shareholders, we began offering executives a new stock-ownership program in 2005. The plan moves our company’s long-term incentives from stock option grants to restricted stock awards. As of December 31, 2015, our executives held 30,056,793 restricted CPOs, representing 0.2% of our total CPOs outstanding.
We are committed to the highest standards of corporate governance. Our corporate governance practices are governed by our bylaws and all applicable provisions in both Mexican and U.S. securities laws. On a voluntarily basis, we also comply with the Mexican Code of Best Practices, which provides recommendations for better corporate practices for listed companies in Mexico. Our company’s board of directors is composed of qualified directors who provide appropriate oversight and meet the independence criteria under applicable laws. The requirement of independence of our audit committee members satisfies the independence and other requirements under applicable law, and one member of our audit committee meets the requirements of a "financial expert" as defined by the Sarbanes-Oxley Act of 2002 (SOX).
We also have designed and deployed a formal internal process to support the certification by our Chief Executive Officer and our Chief Financial Officer of the information that we present in CEMEX’s periodic reports to the U.S. Securities and Exchange Commission, as well as to the corresponding securities authorities in Mexico. Moreover, in compliance with applicable requirements under SOX, we have established: 1) a system to ensure that relevant information reaches senior management in a timely manner; 2) a system for anonymously and confidentially communicating to the audit committee complaints and concerns regarding accounting and audit issues; 3) a process for anonymously and confidentially submitting complaints related to unethical conduct and misuse of assets; and 4) a task force to follow legal requirements and best corporate-governance practices and, when appropriate, propose further improvements. Our code of ethics reflects the requirements of SOX. We are in compliance with the applicable sections of SOX, including section 404.
1. Where are CEMEX's shares traded, and what are the shares' ticker symbols?
CEMEX' shares trade on the Mexican Stock Exchange under the ticker symbol CEMEXCPO. CEMEX's shares also trade on the New York Stock Exchange in the form of ADSs under the ticker symbol CX.
2. What is a CPO?
Our capital stock consists of series A shares and series B shares. Each of our “Certificado de Participación Ordinario” (CPO) represents two series A shares and one series B share. A CPO is the type of equity security that CEMEX trades on the Mexican Stock Exchange.
3. What is an ADS?
American Depositary Shares (ADSs) are a means for non-U.S.-based corporations to list their ordinary equity on an American stock exchange. Denominated in US dollars, they confer full rights of ownership to the corporation’s underlying shares, which are held on deposit by a custodian bank in the company’s home country or territory.
4. What is the ratio of CEMEX's ADSs to CPOs?
One CEMEX ADS traded on the NYSE represents ten CEMEX CPOs.
5. Do all shareholders have the same voting rights?
Under the terms of the CPO trust agreement, non-Mexican holders of CPOs and ADSs have no voting rights with respect to the A shares underlying those CPOs and ADSs. All ADSs are deemed to be held by non-Mexican nationals. At every shareholders' meeting, the A shares held in the CPO trust are voted in accordance with the vote cast by holders of the majority of A shares held by Mexican nationals and B shares voted at that meeting of shareholders.
6. Does CEMEX have a direct stock purchase plan or a direct dividend investment plan (DRIP)?
CEMEX has a direct stock purchase plan (DSPP). Please click on the following link for information.
7. How many shares does CEMEX have outstanding?
As of December, 31, 2016, CEMEX had approximately 14,041 million CPOs outstanding, representing approximately 1,404 million ADSs.
8. Does CEMEX pay dividends?
Please click here to learn more about our dividend program.
9. Does CEMEX publish a 10K, 10Q, or 20F
CEMEX publishes quarterly and annual reports on the Mexican stock exchange, which might be considered equivalent to the United States' 10Qs and 10Ks, and as a non-US company, CEMEX files a 20F report with the Securities and Exchange Commission every year. As a company committed to transparency, CEMEX makes every effort to adhere to the standard practices and disclosure policies of the international capital markets. You can find our quarterly releases, annual reports, and 20Fs in our reports page.
10. Do you report earnings under U.S. GAAP?
CEMEX reports financial results under International Financial Reporting Standards (IFRS), which is the accounting standard in our quarterly and annual reports. We also file a 20F report on an annual basis which, until December 31, 2010, presented stockholders' equity and net income reconciled from Mexican Financial Reporting Standards to U.S. GAAP. Beginning in 2012, CEMEX adopted IFRS in its 20F report and for future quarterly and annual reports; therefore, based on SEC rules, earnings will no longer be reconciled to U.S. GAAP.
11. What is CEMEX's official accounting currency?
CEMEX’s official accounting currency is the Mexican peso. However, both our quarterly and annual reports offer a convenience translation of our financial statements to U.S. dollars.
12. How much debt does CEMEX have?
As of Decemeber 31, 2016, our net debt plus perpetual notes, which equals total debt plus perpetual notes minus cash and cash equivalents, was US$12,516 million. You can find more information about our debt in our Debt Information section.
13. What is CEMEX's current debt rating?
CEMEX’s credit ratings are as follows:
|Standard & Poor's|
|Long Term Global||BB-||Stable||January 30, 2017|
|Long-Term Global||BB-||Stable||July 25, 2016|
Please follow this link for more details on our debt.
14. How does CEMEX align management's and shareholder's interests?
To better align our executives' interests with those of our stockholders, we began offering executives a new stock-ownership program in 2005. As of December 31, 2016, our executives held 32,481,518 restricted CPOs representing 0.2% of our total CPOs outstanding.
15. Which are the biggest markets in your portfolio, and what percentage of your sales do they represent?
CEMEX's markets and their respective 2016 percentage of sales excluding others and intercompany eliminations are Mexico (22%), the United States (28%), South / Central America and the Caribbean (13%), Europe (25%), and AMEA (12%).
16. Who are the analysts that provide financial coverage of CEMEX?
Please click here for the list of equity analysts that provide coverage of CEMEX.
Please click here for the list of fixed income analysts that provide coverage of CEMEX.
17. Where are your corporate headquarters?
Our headquarters are located in Monterrey, Mexico. The address is Av. Ricardo Margain #325, Col. Valle del Campestre, San Pedro Garza García, N.L., Mexico 66265. For other office locations around the world please click here.
18. How many employees does CEMEX have worldwide?
As of December 31, 2016, CEMEX had 41,357 employees worldwide (excluding discontinued operations).
19. What is CEMEX doing in terms of environmental issues and sustainable development?
Environmental consciousness is part of our corporate culture. Please click here for in-depth information on our environmental culture.
American Depositary Shares (ADSs) are a means for non- U.S.-based corporations to list their ordinary equity on an American stock exchange. Denominated in US dollars, they confer full rights of ownership to the corporation’s underlying shares, which are held on deposit by a custodian bank in the company’s home country or territory. In relation to CEMEX, Citibank, N.A. is the depositary of CEMEX’s ADSs and each ADS represents 10 CPOs. The CEMEX ADSs are listed on the New York Stock Exchange.
Euribor (Euro Interbank Offered Rate) is the rate at which interbank term deposits in euros are being offered within the euro zone between prime banks.
Free cash flow CEMEX defines it as operating EBITDA minus net interest expense, maintenance and expansion capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation and coupon payments on our perpetual notes). Free cash flow is not a GAAP measure.
LIBOR (London Interbank Offered Rate) is a reference rate based on the interest rates at which banks borrow unsecured funds from other banks in London.
Maintenance capital expenditures CEMEX defines it as investments incurred with the purpose of ensuring the company’s operational continuity. These include capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are projects required to comply with governmental regulations or company policies. Maintenance capital expenditures is not a GAAP measure.
Operating EBITDA CEMEX defines it as operating income plus depreciation and amortization. Operating EBITDA does not include revenues and expenses that are not directly related to CEMEX’s main activity, or which are of an unusual or non-recurring nature under Mexican Financial Reporting Standards (MFRS). Operating EBITDA is not a GAAP measure.
Ordinary Participation Certificates (CPOs) are issued under the terms of a CPO Trust Agreement governed by Mexican law and represent two of CEMEX’s series A shares and one of CEMEX’s series B shares. This instrument is listed on the Mexican Stock Exchange.
pp equals percentage points
Strategic capital expenditures CEMEX defines it as investments incurred with the purpose of increasing the company’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs. Expansion capital expenditures is not a GAAP measure.
TIIE (Tasa de Interés Interbancaria de Equilibrio) is a measure of the average cost of funds in pesos in the Mexican interbank money market.
Total debt CEMEX defines it as short-term and long-term debt plus convertible securities and capital leases. Total debt is not a GAAP measure.
Working capital CEMEX defines it as operating accounts receivable (including other current assets received as payment in kind) plus inventories minus operating accounts payable. Working capital is not a GAAP measure.
Aggregates are sand and gravel, which are mined from quarries. They give ready-mix concrete its necessary volume and add to its overall strength. Under normal circumstances, one cubic meter of fresh concrete contains two metric tons of gravel and sand.
Clean Development Mechanism (CDM) is a mechanism under the Kyoto Protocol that allows Annex I countries to recognize greenhouse gas emission reductions from projects developed in Non-Annex I countries.
Clinker is an intermediate cement product made by sintering limestone, clay, and iron oxide in a kiln at around 1,450 degrees Celsius. One metric ton of clinker is used to make approximately 1.1 metric tons of gray Portland cement.
Fly ash is a combustion residue from power plants that can be used as a non-clinker cementitious material.
Gray Portland cement is a hydraulic binding agent with a composition by weight of at least 95% clinker and 0–5% of a minor component (usually calcium sulfate). It can set and harden underwater and, when mixed with aggregates and water, produces concrete or mortar.
Installed capacity is the theoretical annual production capacity of a plant; whereas effective capacity is a plant’s actual optimal annual production capacity, which can be 10–20% less than installed capacity.
Metric ton is the equivalent of 1.102 short tons.
Petroleum coke (pet coke) is a byproduct of the oil refining coking process.
Pozzolana is a fine, sandy volcanic ash.
Ready-mix concrete is a mixture of cement, aggregates, and water.
Slag is the byproduct of smelting ore to purify metals.