SWOT Analysis of CEMEX & Martin Marietta Materials

SWOT Analysis of CEMEX & Martin Marietta Materials

SWOT Analysis of CEMEX & Martin Marietta Materials

INTRODUCTION

This paper will compare the financial statements of Martin Marietta Materials and CEMEX, two large producers of cement and construction aggregates. This paper will first perform ratio and SWOT analysis on both companies and compare and contrast the results between the two companies. Further, the two companies prepare their financial statements use different accounting standards, and this paper will endeavor to further compare and contrast their financial statements, noting the effect of the differing accounting treatment of the different standards on the financial statements of the two companies.

Martin Marietta Materials is an old American company. It was created in 1961 by the merger between the Martin Company, mainly manufacturing aircraft, and the American-Marietta Corporation, producer of building materials. Martin Marietta Materials (“MMM”) is the second largest producer in the United States of construction aggregates, which includes coarse materials, such as sand and gravel (used to construct roads, building foundations and sidewalks), and is further a leading producer of magnesia-based chemicals and dolomite lime. The company owns and operates 285 quarries and distribution centers located in several states, the Bahamas and Nova Scotia. Nevertheless, we cannot say that the company has absolutely no flaws. In Martin Marietta's financial performance can provide multiple signals possible danger. CEMEX in contrast operates on a global level with significant operations in Mexico and other countries in South America, the United States, and in several countries in Europe, Africa and the Middle East, and Asia. CEMEX is the largest supplier of ready-mix concrete and the third largest construction aggregates supplier worldwide.

In 2010, CEMEX reported approximately $14 billion in net sales, compared to MMM be $1.5 billion in net sales. With 46,000 employees ...