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"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
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Monterrey, Mexico, April 26, 2007. 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.
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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-ADR data
| General results |
2006 |
2005 |
% |
| Net sales |
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) |
| Stockholders' equity, majority interest |
12,859 |
9,825 |
31 |
1 For your convenience, US dollar amounts are calculated by converting the constant Mexican
peso amounts at the end of the year using the end-of-year Mexican peso/US dollar exchange rate
for each year. The exchange rates used to convert results for 2005 and 2006 are 10.62 and 10.80
Mexican pesos per US dollar, respectively.
2 Based on an average of 692.0 and 718.4 million American depositary receipts (ADRs) for 2005
and 2006, respectively.
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