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CEMEX, S.A.B. de C.V. (NYSE: CX), announced today that consolidated net sales increased 31% in the third quarter of 2007 to US$6.1 billion versus the comparable period in 2006. EBITDA grew 23% in the third quarter of 2007 to US$1.4 billion versus the same period of 2006.

CEMEX’s Consolidated Third Quarter Financial and Operational Highlights

Higher sales in the quarter were primarily attributable to the Rinker acquisition but also reflected increased cement and aggregates volumes, as well as better supply-demand dynamics in most of our markets.
Operating income in the third quarter increased 15% to US$940 million compared to US$821 million in the same period last year.
Consolidated cement volume increased 3%, ready-mix volume increased 22%, and aggregates volume increased 62% in the quarter.
Hector Medina, Executive Vice President of Planning and Finance, said: “CEMEX delivered solid growth in net sales and operating income in the third quarter. Despite the ongoing slowdown in the residential sector in the United States, we continue to increase sales and improve efficiency across our operations. The addition of Rinker’s operations in the quarter further solidifies our position in the building materials industry. The integration of Rinker began on July 1 and we are now halfway through the post-merger integration process. We remain focused on paying down debt and continue delivering solid returns for our shareholders.”

Consolidated Corporate Results

During the third quarter of 2007, majority net income decreased 7% to US$780 million from US$836 million in the third quarter of 2006. The recognition of an extraordinary gain of close to US$100 million from the sale of our stake in the Indonesian cement company Semen Gresik in the third quarter last year, as well as higher financial expenses in the quarter due to the Rinker acquisition, contributed to the decrease.

Net debt at the end of the third quarter was US$19.2 billion, representing an increase of approximately US$15.1 billion during the quarter, due to the Rinker acquisition. The net-debt-to-EBITDA ratio increased to 3.6 times from 1.0 time at the end of the second quarter of 2007. Interest coverage reached 6.9 times during the quarter, down from 8.3 times a year ago.

Main markets Third Quarter Highlights

Net sales in our operations in Mexico increased 6% during the third quarter of 2007 to US$950 million, compared with US$899 million in the same period of 2006. EBITDA increased 3% to US$336 million versus the same period of last year. Cement, ready-mix, and aggregates volumes increased 5%, 8% and 50%, respectively, during the quarter versus the same period last year.

CEMEX’s operations in the United States reported net sales of US$1.7 billion in the third quarter of 2007, up 57% from the same period in 2006. EBITDA increased 25% to US$420 million, from US$336 million in the third quarter of 2006. Domestic cement volume decreased 1% versus the same quarter in 2006. Ready-mix and aggregates volumes increased 54% and 173%, respectively, versus the same period last year. These results include the impact of Rinker’s operations. Building materials dynamics in the U.S. continued to be driven by the ongoing downturn in the residential sector.

In our operations in Spain, net sales for the quarter were US$502 million, up 16% from the third quarter of 2006, while EBITDA increased 12% to US$149 million. Cement, ready-mix, and aggregates volumes decreased 6%, 5% and 3%, respectively, during the quarter compared with the third quarter of 2006.

Our operations in the United Kingdom experienced a 10% increase in net sales, to US$550 million, when compared with the same quarter of 2006. EBITDA decreased 18% to US$34 million in the third quarter from US$41 million in the comparable period in 2006.

Net sales in the Rest of Europe region increased 14% during the third quarter of 2007 versus the comparable period in the previous year, reaching US$1.1 billion. EBITDA was US$167 million for the region, 13% higher compared to the same quarter of 2006.

CEMEX’s operations in South/Central America and the Caribbean reported net sales of US$526 million during the third quarter of 2007, representing an increase of 28% over the same period of 2006. EBITDA increased 37% for the quarter to US$184 million versus the same period in 2006.

Net sales in the Africa and the Middle East region were US$198 million, up 8% from the same quarter of 2006. EBITDA increased 4% to US$50 million versus the comparable period in 2006.

Operations in Asia and Australia reported a 515% increase in net sales, to US$509 million, versus the third quarter of 2006, and EBITDA was US$89 million, up 369% from the same period in the previous year. The increase is mainly due to the integration of Rinker operations.

CEMEX is a growing global building materials company that provides high-quality products and reliable service to customers and communities in more than 50 countries throughout the world. CEMEX has a rich history of improving the well-being of those it serves through its efforts to pursue innovative industry solutions and efficiency advancements and to promote a sustainable future. For more information, visit www.cemex.com.
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