In face of the posed challenges, Corporacion Moctezuma® consolidated yet another year of achievements, reporting outstanding results, recording a growth of 15.2% in their sales, an increase of over 4.8% in the construction sector.
An international economy ruled by uncertainty was the scenery of the year 2011. The countries that make up the European Union faced serious challenges with a strong economic slowdown, high unemployment indexed, and a reduction of the resulting tax collection.
Meanwhile, United States, economy to which Mexico has a great dependency, managed to keep a moderate economic growth rate, resulting in a moderate job recovery, still insufficient regarding the levels before the 2008-2009 recession.
Mexico was not exempt of the effects of the European crisis, but, thanks to the budgetary discipline implemented by the Federal Government in the last years, the country was strong enough to adjust the effects of the international turmoil.
The Gross Domestic Product in Mexico finished the 2011 with a 3.9% growth, scoring two consecutive years with an increase after the strong 6.2% fall reported in the year 2009. The yearly inflation of the year 2011 was 3.8% which, compared to the yearly 4.4% reported in 2010 is favorable.
The interest rate for the Federal Government debt was 4.5% yearly in December 2011 against 4.6% in December 2010. The peso lost value against the dollar, at the end of 2011, the exchange rate against the American dollar was P$13.98 per dollar, while at the end of 2010 it closed at P$12.50.
The construction sector reported a 4.8% growth in 2011, not enough for returning to the levels observed before the year 2008. As a consequence, 2011 was also a year of challenges for the cement industry, not only due to the market, but also because the energy prices, basic supply of the industry, also increased well above the inflation and they had an impact on the margins of cement manufacturing companies.
In face of the posed challenges, at Corporacion Moctezuma® we consolidated yet another year of achievements, reporting outstanding results, recording a growth of 15.2% in our sales, an increase of over 4.8% in the construction sector. The increase of our sales volume, along with a strict control of expenses, have allowed us a 9.9% growth in its cash flow or EBITDA, figures that reflect our focus to consolidating our quality, effectiveness and financial solidity.
The Apazapan plant, in Xalapa, Veracruz, started marketing cement in January 2011, and during this year it has been a determining factor for gradually entering new markets, mainly in the Southeast of the country.
The investments made in 2011 amounted to $685.0 million pesos, consolidated in finishing the final works of the Apazapan Plant, as well as building the Central Plant of the Concrete Division in Mexico City, a model regarding its interaction with the environment; it is the first concrete plant in process of getting the basic LEED (Leadership in Energy & Environmental Design) certification, which is granted to green constructors who implement the best practices in design, construction and operation.
Our team of collaborators of Corporacion Moctezuma® is the most important resource of our company, its everyday work has made possible the achievements of the fiscal year. In 2011 we confirmed our commitment with our staff by bringing development and promotion opportunities with the creation of new positions thanks to the start of operations of the Apazapan Plant, as well as by raising our professional level, emphasizing training programs on environmental topics.
In adherence with our policy of caring for the communities with which they interact, we broadened our actions regarding social responsibility during 2011. Thus, the Health Fair we have been organizing for 16 years in Tepetzingo, Morelos, was organized for the first time in the municipalities of Cerritos and Villa Juarez, in San Luis Potosi, and in Apazapan, Veracruz, where we provided general medicine services, timely detection of cancer and pediatric consultations, among other to over 700 people.
The healthy financial position allows us to focus our efforts on achieving a better efficiency in our operations, improving our customer services, and serving new markets without distracting valuable financial and resources and human capital.
In 2011 we continued providing benefits to our shareholders. In the Assembly held on April 7, 2011 the payment of a dividend of $1.30 per share in cash was agreed, payable from April 15, 2011.
During 2011, we exceeded challenges and consolidated achievements that keep Corporacion Moctezuma® on the path of the defined strategy and efficiently executed in the last years: organic growth made with the resources of our own operation, without the need of getting a costly external financing, using the most advanced technologies of the industry, being present in strategic areas of the country and having a solid financial position.
We believe the hard work we carry out every day with the support of our clients, providers, and shareholders gives fruits, and consolidates us in the Mexican market.
To all of them, we reaffirm our commitment and gratitude