In terms of volume, HOLCIM LTD. posted increases across all sectors, while witnessing the most robust growth in the cement segment. Worthy of particular mention are the significantly better results generated by Holcim in the U.S. and Mexico. Consolidated operating profit for nine months was US$1.07 billion, from 2001 numbers of US$1.066 billion.

Holcim (US) Inc. is increasingly benefiting from the new Portland plant commissioned mid-year in Colorado. Despite weaker economic conditions, the U.S. group had no difficulty selling additional output. Driven by strong demand, Canadian-based St. Lawrence Cement reported a renewed improvement in financial results. Group region North America generated an operating profit of US$152.5 million, compared to US$160.7 million in 2001.

In Latin America, the economic climate remain difficult. Volumes in the group region, however, remain stable. Construction activity is solid, as are sales levels at group companies in Mexico, Central America, and the Caribbean. Sound order books in Ecuador's construction industry helped La Cemento Nacional to increase deliveries. Similarly, order volumes remained healthy in Chile's construction sector.

Mexico's CEMEX, S.A. de C.V. announced that its expects EBITDA for the quarter ending Dec. 31, 2002, to reach about US$445 million, versus US$520 million for the fourth quarter of 2001, and cash earnings of about US$324 million during the quarter versus US$373 million for the same period a year ago. For the year, Cemex expects to achieve revenue of US$6.7 billion.

Cemex anticipates that its 2002 EBITDA and free cash flow will meet its recently stated estimates, at slightly under US$2 billion and approximately US$950 million, respectively. The company also expects to achieve a net debt reduction in excess of US$200 million from the Sept. 30, 2002 level.

Cemex's operations in Mexico continued its volume growth trend for the third consecutive quarter, as cement demand continues to benefit from healthy low-income housing construction activity as well as infrastructure spending. For the fourth quarter, domestic gray cement and ready mixed volumes for Cemex Mexico are expected to grow more than 4% and 8%, respectively, versus the same period a year ago.

Cement sales volumes for Cemex's operations in the United States are expected to decline about 9% versus the same quarter in 2001, of which 1.5% age points are explained by one less shipping day in the quarter.

Cemex's operations in Venezuela have been affected by the country's difficult operating environment during the month of December. Contribution to consolidated results by Venezuela is expected to be significantly lower in the fourth quarter of 2002.