<PAGE>   1

                                                                      EXHIBIT 13


                                    [COVER]



                    AGGREGATE VALUE            ANNUAL REPORT
                    ----------------------------------------
                    DISTRIBUTION & INTEGRATED      2000



                                     [LOGO]
                              PUERTO RICAN CEMENT
<PAGE>   2






                                    [COVER]




                       PUERTO RICAN CEMENT ANNUAL REPORT
<PAGE>   3





                              [COVER (RIGHT HALF)]




                            AGGREGATE VALUE:   2000
                            -----------------------
                       DISTRIBUTION & INTEGRATED PRODUCTS
<PAGE>   4









                                  [PHOTOGRAPH]
<PAGE>   5






                                    CONTENTS



<TABLE>
               <S>                                                    <C>
               CORPORATE PROFILE.......................................6

               STRATEGIC BUSINESS FOCUS................................7

               2000 HIGHLIGHTS.........................................8

               FINANCIAL HIGHLIGHTS....................................9

               CHAIRMAN'S MESSAGE TO SHAREHOLDERS.....................10

               FINANCIAL INFORMATION..................................19

               STOCKHOLDER INFORMATION................................53
</TABLE>

                                       5
<PAGE>   6



   CORPORATE PROFILE

PUERTO RICAN CEMENT COMPANY, INC. aggregate value is much more than the sum of
its parts due to its well integrated production and distribution network.

Our corporate group manufactures and markets top quality cement, lime and
concrete in Puerto Rico and selected export markets. Our divisions and
subsidiaries are also responsible for other auxiliary operations, such as
aggregates, paper and polypropylene bags production, real estate development,
transportation and financial services.

         -        PUERTO RICAN CEMENT - Manufactures Portland grey cement, which
                  is produced and sold locally in Puerto Rico.

         -        FLORIDA LIME CORP. - Produces lime for local and export
                  markets, including chemical lime used in water purification
                  plants, tanneries, foundries and sugar mills, and type "S"
                  lime, specially formulated for construction and plastering
                  applications in tropical climates.

         -        READY MIX CONCRETE, INC. - The leading concrete producer in
                  Puerto Rico with 19 concrete batching plants, a fleet of over
                  250 trucks and the latest in mobile concrete systems to serve
                  the construction industry islandwide.

         -        ST. REGIS PAPER & BAG DIVISION - Produces multiwall paper bags
                  which are sold to the parent company as well as to local
                  producers of sugar, rice, grain, animal feed, fertilizers and
                  chemicals.

         -        POLY BAGS & PACKAGING, INC. - Manufactures polypropylene bags
                  with capacity of up to two short tons which may be used for
                  several applications, including packed lime exports.

         -        DESARROLLOS MULTIPLES INSULARES, INC. - Involved in real
                  estate development and aggregate operations (beginning in the
                  first half of 2001).

         -        LIMESTONE MATERIALS, INC. - An aggregate extraction operation
                  in the southern part of the Island, expected to open late in
                  2001.

         -        PONCE CAPITAL CORP. - Offers asset-based financing to block
                  manufacturers, hardware stores, and ready mix concrete
                  businesses throughout Puerto Rico.

         -        PONCE EQUIPMENT & MAINTENANCE CORP. ("PEMCO") - Created in
                  December 2000, it provides islandwide transportation and
                  maintenance services to the Company for delivery of bulk
                  cement, coal and lime.


                                       6
<PAGE>   7

   STRATEGIC BUSINESS FOCUS


         VISION

         Puerto Rican Cement ("PRCC") will strive to solidify its position as
         the leading cement, lime and concrete manufacturer and distributor in
         Puerto Rico and selected export markets, while strengthening and
         expanding its successful auxiliary operations, including production of
         aggregates and multiwall paper bags, as well as real estate
         development, transportation and financial services.

   MISSION

   To run a profitable and technologically-advanced operation that
   anticipates and fulfills its customer's needs by means of its
   personnel's excellence and commitment to service, productivity,
   efficiency, quality and innovation.

           STRENGTHS

           PRCC's competitive advantage comes from its winning
           combination of strengths, including: solid financial position;
           personalized service; right mix of senior executives and young
           managers; providing technical support to clients; commitment
           to improving our community's environment and quality of life;
           top priority to occupational safety; dedication of its people
           to achieving client satisfaction and a successful operation.

     STRATEGIES

     To continue enhancing PRCC's infrastructure by expanding into new
     markets and developing new auxiliary businesses within its core
     industry, so it can overcome the challenges and take advantage of the
     opportunities presented by the local and global markets.

           FOCUS

           The successful implementation of PRCC's business strategies on
           five key areas: operational efficiency, managerial excellence,
           quality of products, customer service and competitive market
           positioning.

   ENVIRONMENT

   PRCC has done and will continue to do everything in its power to comply
   with all the environmental regulations and support community programs
   which enhance and protect our environment.


                                       7
<PAGE>   8
2000 HIGHLIGHTS


CEMENT

         -        Completion of the modification to the clinker cooler and other
                  auxiliary systems completing the last phase of the cement
                  production expansion project.

         -        Production of Type 1-P, Portland cement for selected markets.

         -        Expansion of the cement distribution network with the opening
                  of a new center increasing our Island-wide coverage and market
                  penetration.

CONCRETE

         -        Acquisition of five new mobile concrete systems to expand
                  market penetration.

         -        Celebration of the 55th anniversary of continued customer
                  service by Ready Mix Concrete.

AGGREGATES/REAL ESTATE

         -        Installation of the aggregates processing plant, scheduled to
                  open during the first semester of 2001.

         -        Reactivation of construction on Las Orquideas housing
                  development project in Vega Alta.

PACKAGING

         -        Contribution to company's consolidated net income increases
                  due to operational efficiencies.

OTHER

         -        Completion of Phase II JD Edwards information systems
                  implementation in Ready Mix Concrete.

         -        Purchased, in January 2001, of all the assets of our principal
                  bulk-cement carrier.

         -        Creation of Ponce Equipment & Maintenance Corp. to manage the
                  new transportation and maintenance operation.


                                       8
<PAGE>   9

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------------------
Year ended December 31,                     2000              1999               1998              1997              1996
--------------------------------------------------------------------------------------------------------------------------------
<S>                                        <C>               <C>                <C>               <C>              <C>
Operating revenues                         $160,508,914      $173,299,816       $148,377,205      $156,774,092     $ 149,276,622
--------------------------------------------------------------------------------------------------------------------------------
EBITDA                                       28,705,113        32,821,826         29,295,496        40,955,135        34,483,945
--------------------------------------------------------------------------------------------------------------------------------
Income before income tax                     11,304,508        16,267,935         14,146,406        22,805,472        21,568,030
--------------------------------------------------------------------------------------------------------------------------------
Net income                                    9,135,506        12,042,824         11,381,184        16,003,211        14,688,391
--------------------------------------------------------------------------------------------------------------------------------
Net income per share                               1.76              2.29               2.11              2.91              2.66
--------------------------------------------------------------------------------------------------------------------------------
Total assets                                310,534,803       304,588,826        298,769,557       291,051,116       281,203,510
--------------------------------------------------------------------------------------------------------------------------------
Dividends per share                                0.76              0.76               0.76              0.76              0.70
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                  TOTAL ASSETS
                                  IN MILLIONS

                                     [GRAPH]


                        EARNINGS BEFORE INTEREST, TAXES
                         DEPRECIATION AND AMORTIZATION
                                 (IN MILLIONS)

                                    [GRAPH]


                        EARNINGS BEFORE INTEREST, TAXES,
                    DEPRECIATION AND AMORTIZATION PER SHARE
                                  (IN DOLLARS)

                                    [GRAPH]


                               OPERATING REVENUES
                                 (IN MILLIONS)

                                    [GRAPH]


                              DIVIDENDS PER SHARE
                                  (IN DOLLARS)

                                    [GRAPH]


                                       9
<PAGE>   10

                     CHAIRMAN'S MESSAGE TO OUR SHAREHOLDERS



[PHOTO]

As another year came to a close, we at Puerto Rican Cement Company ("PRCC"),
continued the course established in recent years. Progress relating to key
initiatives following our strategic goal of vertically integrating our
operations resulted in the completion of major production and distribution
improvements to our facilities. At the same time, we implemented other
initiatives including an aggressive marketing strategy. All of these efforts
should further strengthen our solid foundation and leading market position,
giving PRCC the competitive edge necessary to take full advantage of the many
opportunities that lie ahead. Here are just some of our most significant
achievements in the year 2000.

                             COMPANY'S CEMENT SALES
                             (IN THOUSANDS OF TONS)

                                    [GRAPH]

CEMENT OPERATIONS



During the year 2000, we directed our marketing efforts to reach new areas of
the Island's cement market that we had not tapped before. For example, we began
production of Type 1-P Portland cement in a limited fashion for selected local
markets. This cement provides a new option to cement-block manufacturers, while
maintaining the quality of their final product.

         In October 2000, we opened a new cement distribution center in the
         Municipality of Moca, on the northwestern part of the Island, allowing
         us greater market penetration in an area that has enormous potential
         for new construction developments. With this addition to our
         distribution network, we increased our Island-wide coverage, as we now
         serve customers of the northern region from our Guaynabo center, those
         in the south from our Ponce plant, those in the eastern side from the
         Fajardo center opened in 1999 and, now those in the northwest from the
         new Moca center.


                                       10
<PAGE>   11
Always looking for new ways to modernize our plants and increase our production
capability, we completed the clinker cooler modification at the cement plant,
concluding the last phase of our cement production expansion plan.

As we reported in our 1999 annual report, the Puerto Rico Department of Consumer
Affairs (known as DACO by its Spanish acronym) eliminated its regulation
protecting the quality requirements for Type I Portland cement used on the
Island. This action has resulted in a significant increase in cement imports.
The bump on the road has presented us with a new challenge, which has resulted
in initiatives such as the opening of the Moca center to strengthen PRCC
presence Island-wide and other initiatives aimed towards the solidification of
the Company in the near future.

In 2000, the increase in cement imports brought about by this deregulation
negatively impacted our results for the year. PRCC sold 1,100,000 tons of
cement in 2000 to local markets, compared to 1,255,000 tons in 1999. This
represents $92.5 million in cement sales, a 10% drop from the $106 million
reported in 1999.

READY MIX CONCRETE OPERATIONS

Ready Mix Concrete, Inc., which celebrated its 55th anniversary in 2000,
contributed to achieving the Company's strategic goal of reaching those areas of
the construction industry that did not yet serve. At the same time, this
subsidiary worked towards increasing our cement distribution opportunities.

A step taken in that direction was the acquisition of five new mobile concrete
mixers. These modern units provide excellent mobility around different
construction projects, and are very easy to transport from one site to another.
Having this equipment also minimizes the problem of cement mixer trucks waiting
in line to provide service. With their added agility, flexibility and mobility,
the mobile concrete mixers mean greater convenience and better service for our
customers.

Our commitment to a quality product and a well planned capital expenditure
program including the acquisition of new concrete mixer trucks has allowed our
Company to sell older trucks and replace them with new modern units, thus
reducing the fleet's maintenance cost.



                                       11
<PAGE>   12
Ready Mix Concrete, Inc. reported sales of 1,390,000 cubic yards of concrete in
2000, compared to 1,496,000 cubic yards in 1999. Operating margins were also
lower than the previous year due to the continued scarcity of aggregates and its
subsequent price increase. This increase in aggregates cost, added to higher oil
and diesel prices, contributed to lower sales and profit margins for this
subsidiary during 2000.

PHOTO

AGGREGATES AND REAL ESTATE

Aggregates, as one of the main ingredient of ready mix concrete, represent an
important cost factor for this operation. This material is relatively scarce in
Puerto Rico and its extraction, and manufacture are regulated, resulting in a
commodity subject to frequent price fluctuations. PRCC has taken the next
logical step and decided to produce its own aggregates. This move is expected to
bring economies to the operation by leveling the ever-increasing prices of
aggregates while securing the source of this material for ready mix concrete
production.

Starting in 2001, we expect to obtain aggregates for our operations as a
by-product of our development of Las Orquideas, our low-cost housing project in
the Municipality of Vega Alta.

After settling some legal disputes in 1999, we began construction of the
aggregate processing plant in Carolina. We expect that this operation will open
in the first half of 2001. As soon as it is opened, we commence the extraction
of excess raw material at Vega Alta, build the housing project and transport the
excess material for the manufacturing of aggregates. PRCC has already purchased
18 new tractor trucks and dump trailers for aggregates transport.

PHOTO



                                       12
<PAGE>   13
The development of the housing project together with the Carolina processing
plant are an integral part of our plan to develop the Company's real estate and
promote business growth, as it will add a new income stream that will provide
tax-exempt income and greatly enhance our operations.

OTHER SUBSIDIARIES

PACKAGING

The ST. REGIS PAPER AND BAG DIVISION increased its contribution to the Company's
consolidated net income by 7.55 % to $616,000, even though its net sales dropped
from $8,522,000 in 1999 to $7,971,000 in 2000. This is mainly attributable to
increased operating efficiencies, which resulted in lower cost of sales and
administrative expenses.

POLY BAGS AND PACKAGING, INC., which produces polypropylene bags, contributed
modestly to consolidated operating income. This contribution was also the direct
result of operating efficiencies, which brought economies in cost of sales and
administrative expenses. However, sales decreased during this year, due to a
considerable reduction in lime export business.

                                   Net Income
                                 (In millions)

                                    (Graph)

                              Net Income Per Share
                                  (In dollars)

                                    (Graph)

During 2001, PRCC will continue to seek other business opportunities in the lime
and packaging businesses. We also plan to develop new uses for the polypropylene
and paper bags and continue searching new markets for these products.

PHOTO

LIME

While local lime sales for 2000 were similar to those of 1999, the reduction in
the demand for lime for export impacted results in our subsidiary Florida Lime
Corp. Export sales for 1999 constituted 30% of total lime sales for that year,
while export sales were only 7% in 2000, a reduction of 11,609 tons or 22%.


                                       13

<PAGE>   14
FINANCING


Ponce Capital Corporation, a subsidiary created in 1998 to provide asset-based
financing to cement block manufacturers, hardware stores and ready mix concrete
businesses, increased its revenues by 47%, from $502,000 in 1999 to $736,000 in
2000. An aggressive awareness program was implemented during the last quarter of
2000, promoting to our customers the services provided by this subsidiary. This
financing arm will be maintained as a service and a financing alternative to our
customers, so they can obtain competitive rates and low transaction costs. We
believe this operation greatly benefits our customers and provides an additional
income stream to PRCC.

CUSTOMER SERVICE


In addition to providing our customers with high quality products, we want to
give them value added services to the point where they feel that, more than a
supplier, PRCC is their business partner. With this in mind, in previous years
we have implemented several service programs that complement our products,
including the financing alternative of Ponce Capital Corporation and the "Banca
del Ferretero" (Hardware Bankers Program). This program continues to be an
excellent alternative for small and medium-sized hardware stores, that rely on
our financial support for the modernization of their businesses. It also gives
an additional incentive to their clients, by providing them with the financing
necessary to purchase construction materials at their hardware stores. The
program is being continuously revised and expanded to include modern electronic
services as they become available.


We have also conducted seminars and technical presentations for construction
industry members to give them a better understanding of the optimal use of our
products. We also made presentations to our customers to familiarize them with
our portfolio of products and all of our services. All these initiatives are
backed by our technical staff and in-house laboratory.

INFORMATION TECHNOLOGY


We continued the migration to JD Edwards software technology that began in 1999.
We have already implemented Phase I of the project, allowing us to integrate
accounting, accounts payable, purchasing and inventory control into a standard
and centralized system. Phase II implementation, which includes the migration of
accounts receivable and sales, was completed in our ready mix concrete
subsidiary in 2000, with the implementation in the other subsidiaries expected
to be completed in 2001.


                                       14
<PAGE>   15
COST REDUCTION PROGRAM


Continuing our efforts to become a more efficient, lean operation, PRCC has
implemented, beginning in year 2001, a comprehensive cost reduction program.
This program includes, among other measures, the following:

EARLY RETIREMENT PROGRAM


The Company offered employees with over 60 years of age and 25 years of service
the opportunity to retire, obtaining benefits and severance compensation
according to their years of service. We believe the employees that qualify for
this opportunity will benefit from the compensation package we have established,
and, at the same time, PRCC will benefit from lower payroll costs after the
implementation year.


                                WORKING CAPITAL
                                 (IN MILLIONS)

                                    [GRAPH]


                          CEMENT MARKET IN PUERTO RICO
                             (IN THOUSANDS OF TONS)

                                    [GRAPH]


                                       15
<PAGE>   16
TRANSPORTATION

[PHOTO]

We capitalized on another business opportunity with the acquisition of our main
bulk cement and coal transportation carrier. With this acquisition, finalized in
January 2001, we expect to generate savings in transportation expenses. The
Company also created a new subsidiary during year 2000, Ponce Equipment &
Maintenance Corp. ("PEMCO") to manage and administer this operation.

OTHER INITIATIVES

Administrative functions of our subsidiary Ready Mix Concrete are being
consolidated into our main offices at Guaynabo. We are in the process of
remodeling the office spaces to accommodate Ready Mix Concrete employees and
eliminate redundant functions.

Other areas of economies that will be tackled are reduction of external
professional services, increased control over overtime expenses on all the
companies and the negotiation of better prices on the purchase of paper for the
bag division.

ENVIRONMENT

[PHOTO]

Our commitment to the environment has blossomed inside and outside our
facilities. During the year 2000, we renewed our alliance with the Puerto Rico
Conservation Trust to continue the reforestation program at our cement plant and
in communities in the southern region of the Island. We also established a
recycling education program in our cement plant's neighboring communities.


                                       16
<PAGE>   17
OUTLOOK FOR 2001


We expect construction activity in Puerto Rico to continue to be strong, but at
a slower pace than in 2000, reflecting the slowdown of the economy after years
of strong economic expansion. Economists predict that the local economy will
grow at a rate between 2.2% and 2.7% during the current fiscal year, mainly due
to an increase in petroleum products price, the U.S. economic slowdown and the
reduction in public investment, mostly in the construction industry.

Economists predict that the local economy will grow at a rate between 2.2% and
2.7% during the current fiscal year, mainly due to an increase in petroleum
products price, the U.S. economic slowdown and the reduction in public
investment, mostly in the construction industry.

Major government construction projects are coming to an end, so the large market
cement consumption from these projects is expected to slow down. However, the
newly elected government has indicated its intent to continue the development of
infrastructure projects initiated by the previous government, particularly those
related to water supply systems, transportation highways and roads, and low-cost
housing. Development projects in the northern part of Puerto Rico, such as the
Golden Triangle to refurbish and modernize the entrance to the city of San Juan
-- includes marine ports, a convention center, hotels and residential areas --
will help to sustain the construction industry during the next several years. In
addition, it is expected that the announced trans-shipment port planned to be
built on the southern coast of the Island will become a reality in the near
future. If this project materializes, the construction activity for that sector
of the Island will enhance significantly. Finally, the reductions in interest
rates expected throughout 2001 should bring new investment opportunities, thus
increasing the construction activity on the Island.

                             CASH FLOW PROVIDED BY
                              OPERATING ACTIVITIES
                                  (IN MILLIONS)

                                    [GRAPH]


                               CASH FLOW PER SHARE
                                  (IN DOLLARS)

                                    [GRAPH]


                                       17
<PAGE>   18
MANAGEMENT

I have announced my decision to step down as the Chairman of the Board of
Directors, at the Company's annual meeting on May 2nd, 2001. I am very pleased
to announce the nominations of Miguel Nazario as Chairman of the Board of
Directors and Chief Executive Officer, and of Antonio Luis Ferre-Rangel as
President and Chief Operating Officer of the Company. With these nominations, I
feel that I have accomplish one of my main responsibilities before retiring;
ensuring that we keep a very capable management team in place that guarantees
the execution of the Company's strategic plan. Both, Miguel and Antonio Luis
have earned these positions by their great efforts during the past several
years.

On looking back at 44 years of service to PRCC, I feel a great satisfaction with
all the experiences lived and the goals accomplished. Throughout these years,
PRCC has become a strong building block for the local construction industry and
the economy.

We see the year 2001 as a great time to reap the rewards of what we have sowed.
Looking ahead, I see a future full of challenges, initiatives and new goals.
PRCC will continue working with renewed energy and enthusiasm, while looking for
new opportunities for growth and operational efficiencies that can add
additional value to your investment. Let me assure you that PRCC management is
well prepared for these tasks and keenly aware of its responsibility of creating
value and growth to the shareholders.

It has been an honor and a great satisfaction to serve as Chairman of Puerto
Rican Cement Company. I wish to thank our Directors, Managers and all of our
Employees for their support during these years. Their commitment and loyalty to
our Company has helped and will continue to help make our Company the leader in
the cement industry in Puerto Rico.



Sincerely,

Antonio Luis Ferre
Chairman of the Board


                              STOCKHOLDERS EQUITY
                                 (IN MILLIONS)

                                    [GRAPH]

                         PROPERTY, PLANT AND EQUIPMENT
                                 (IN MILLIONS)

                                    [GRAPH]


                                       18
<PAGE>   19
                               TABLE OF CONTENTS





                                       19



<PAGE>   20
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS


This section represents Management's Discussion and Analysis of the Company's
consolidated financial condition and results of operations. It should be read in
conjunction with the accompanying financial statements.

RESULTS OF OPERATIONS

2000 COMPARED WITH 1999

Puerto Rican Cement Company ("PRCC") reported a net income of $9.1 million on
sales of $159.7 million in 2000 compared to a net income of $12.0 million on
sales of $173.2 million in 1999. A reduction in the volume of sales of its
products in all businesses accounted for this decrease. Revenue from realty
operations increased to $778,000 in 2000, as a result of gains on the sale of
undeveloped land lots.

Consolidated gross margin (excluding revenue from realty operations) decreased
$10.1 million to $36.2 million in 2000, while as a percentage of sales it
declined from 26.9% in 1999 to 22.7% in 2000. The decrease was the result of
increases in production costs attributable to higher price for electricity,
repair and shutdown costs in the cement operations, and increased material costs
(principally aggregates) in the ready mix concrete business. The drop in sales
also impacted the utilization of the production capacity of our plants resulting
in higher average unit production costs.

Selling, general and administrative expenses decreased $3.8 million, or 14%,
from $27.5 million in 1999 to $23.7 million in 2000. As a percentage of sales
these expenses declined from 15.9% in 1999 to 14.8% in 2000. The decrease
resulted principally from a decline of $3.2 million in legal expenses. Most of
the legal expenses in 1999 as well as in 1998 were related to the case against
local government agencies concluded in May 1999.

Interest expense for 2000 rose to $6.3 million, an increase of 2.5% from the
$6.2 million reported in the previous year. A higher average balance of
short-term borrowing outstanding during this year coupled with an increase in
financial charges on loans attributable to the operations of the Company's
financing operation, Ponce Capital Corporation ("PCC") drove this increase.
Interest income for 2000 increased $210,000, or 5.7%, to $3.9 million
principally reflecting increased revenues from PCC.

The effective tax rate for 2000 decreased to 19.2% compared to 26.0% in 1999.
The decrease resulted from the combination of a lower taxable income and the use
in 2000 of a higher amount of tax credits, purchased at a discount.

CEMENT SEGMENT

CEMENT OPERATIONS. Cement sales for PRCC went down 12% from 1,255,000 tons sold
in 1999 to 1,100,000 in 2000. Average net selling price decreased less than 1%
as the result of increases in freight expenses. On the other hand, total cement
sold in Puerto Rico remained at approximately the same level as 1999 with a
volume of 2,131,000 tons in 2000 compared to 2,137,000 tons in 1999. In 2000,
sales for the first nine months of the year were 3% lower than in the same
period of 1999 (sales during 1999 were driven up by the construction boom
created in the aftermath of Hurricane Georges). During the last quarter of 2000,
however, sales jumped 48,000 tons, or 10.6%, over the comparable quarter of 1999
fueled by increased government projects. This last boost in sales helped to end
the year with total volumes for the Island at a level similar to the prior year.
Nevertheless, due to the increased competition and market penetration by cement
imports to the Island, PRCC did not capitalize on this situation, thus affecting
the Company's market share. Imports compete on the base of lower prices.


                                       20
<PAGE>   21
As mentioned in the Chairman's message, the Company is taking immediate actions
directed to strengthen its position in the market. In the face of increasing
competition Management is committed to a sustained effort to increase market
share and to reduce costs. To date the following actions have been implemented:

         -        Improvements to cement production facilities which has
                  increased clinker production capacity.

         -        Introduction of a new type of cement, Type 1-P Portland, for
                  selected markets.

         -        Establishing, in October 2000, a new cement distribution
                  center in the Municipality of Moca servicing the northwestern
                  part of the Island, adding accessibility to our products and
                  increasing our Island-wide coverage.

         -        Acquisition of new mobile concrete mixers providing added
                  agility and flexibility for the delivery of concrete by our
                  ready mixed concrete subsidiary.

         -        Acquisition, in January 2001, of all the transportation
                  equipment of our main bulk cement and coal carrier. This
                  purchase is expected to generate savings in transportation
                  expenses to the Company.

         -        Offering of an early retirement program to employees meeting
                  certain requirements related to age and years of service. The
                  program, which will be totally implemented by March 31, 2001,
                  resulted in a 79% acceptance rate and will provide PRCC with
                  the opportunity to reduce payroll costs.

         -        Consolidation of the administrative functions of Ready Mix
                  Concrete at our main offices eliminating redundancies in
                  functions.

Additional cost reduction efforts are being evaluated in areas related to
manufacturing, overtime expenses and costs of raw materials and supplies. We
expect to see the benefits of these actions in 2001.

Gross margin for the year decreased $10.2 million from $35.5 million in 1999 to
$25.4 million in 2000 partially because of the decrease in sales volume. Gross
margin percentage decreased from 33.5% in 1999 to 28.1% in 2000 due to higher
manufacturing costs during this year in addition to the decrease in volumes. The
increase in manufacturing costs was caused by higher fuel and energy costs
brought by recent spikes in oil prices around the world. Manufacturing costs for
2000 were also affected by a cement plant shutdown for a major overhaul to the
Company's clinker production equipment performed during the first quarter of
2000. The five-week shutdown not only resulted in higher repair expenses for the
year but also in a temporary reduction in the plant capacity utilization that
increased the average cost per unit produced during that period.

READY MIX CONCRETE SEGMENT

READY MIX CONCRETE OPERATIONS. Despite a drop of 7.1% in total cubic yards sold,
ready mix concrete sales decreased 4.4% from $94.5 million in 1999 to $90.4
million due to an increase of 2.9% in the average selling price per cubic yard.
Income from operations declined from $2.3 million in 1999 to $877,000 in 2000.
The decrease is directly related to the decrease in sales as well as an increase
of 4.5% in average cost per cubic yard mainly attributed to increased aggregate
costs and delivery expenses.

ALL OTHERS SEGMENT

LIME OPERATIONS. In 2000, lime operations continued to be adversely impacted by
a marked decrease in export markets. Total sales volume declined from 29,500
tons in 1999 to approximately 16,200 tons in 2000, resulting in a decrease from
an income of $258,000 in 1999 to a loss of $39,000 in 2000. The drop in sales
resulted in
                                       21

<PAGE>   22
lower production and higher average fixed costs per ton produced. Gross margin
on the lime subsidiary decreased to 17% for the year 2000 compared to 20% in
1999.

MULTI-WALL PAPER BAGS OPERATIONS. Despite a decrease of 6% in sales volume,
which reduced gross margin by $118,000 to $1.4 million, gross margin for the
year 2000 remained at 18% as a percentage of sales, the same as in 1999. These
results were obtained thanks to improved efficiencies in inventory management
and added controls over manufacturing and selling, general and administrative
expenses. Income from operations for 2000 improved $98,000 to $963,000.

FINANCING OPERATIONS. In 2000, PCC operations contributed with $126,000 to
income before taxes compared to $136,000 in 1999. Interest income increased 47%
to $736,000 as the result of an increase in loans outstanding, while financing
costs increased 60% to $526,000. The increase in financing costs resulted from
the additional loans outstanding plus an increase in the cost of the funds to
the Company.

1999 COMPARED WITH 1998

Consolidated sales of $173.3 million for 1999 were $24.9 million higher than
sales of $148.4 million in 1998. Sales in 1999 were 17% higher than in the
previous year due to increases in cement and ready mix sales. Vigorous
construction activity throughout the year resulted in a 21% increase in gross
cement sales and a 22% increase in sales of ready mix concrete. This increase
was offset by a sales decline in both the lime and paper and bags operations.

Consolidated gross margin improved from $39.7 million in 1998 to $46.6 million
in 1999. This was a result of higher net sales, although it remained at
approximately 27% as a percentage of sales for both years. This increase is
partly due to a lower level of consolidated gross margin in 1998 caused by
interruptions in clinker production schedules associated with the passage of
Hurricane Georges and scheduled plant shutdown to complete an upgrade project.
Consolidated gross margin was affected by an increase in the cost of aggregates
used in the manufacturing of ready mix concrete, which went up as alternate
sources of this material had to be found due to the increased demand for this
product. In addition, higher unit production costs in the paper and bags
operations caused by lower utilization of the plant production capacity, as
sales in that segment decreased, also affected gross margins.

Selling, general and administrative expenses in 1999 increased $3.3 million from
1998 to $27.5 million, although they declined from 16.3% of net sales in 1998 to
15.9% in 1999. Most of this increase was associated with higher sales volumes,
but it also included approximately a $450,000 increase in legal expenses related
to the concluded case against local government agencies. Legal expenses mostly
related to the concluded case against the local government, totaled $4.8 million
in 1999 and $4.3 million in 1998. As indicated previously, the case was resolved
on terms favorable to the Company and, the related work to commence the
aggregates business is in progress.

Interest expense for 1999 increased $944,000, or 18%, when compared to the prior
year. Approximately $244,000 of this increase was related to financial charges
on loans attributable to the operations of PCC, which began operations in
September of 1998. Also, as disclosed in the 1998 financial statements, the
Company was audited by the Puerto Rico tax authority. This audit, which
concluded in 1999, resulted in a settlement where the Company paid over $300,000
in interest. Interest income for 1999 increased $258,000, principally reflecting
the revenues from the Company's new financing operations, PCC.

During 1998, PRCC reported a gain on sale of investments of approximately $1.2
million. Also included in income before taxes for that year was a $240,000 gain
on the expropriation of a piece of land owned by one of the Company's
subsidiaries. Excluding the effect of these two non-recurring gains in the 1998
results, income before taxes for 1999 increased by over $3.8 million, or 27%,
over the adjusted 1998 figure.


                                       22
<PAGE>   23
The effective tax rate for 1999 increased to 26% compared to 19.6% in 1998. The
increase resulted from a higher proportion of capital gains in 1998, which are
taxed at lower rates than ordinary income, and a proportionately higher tax-free
income during 1998.

CEMENT SEGMENT

CEMENT OPERATIONS. Reflecting a year of strong construction activity, PRCC
finished 1999 with an increase of 21% in cement sales deliveries, with volumes
for the year rising from 1,037,000 tons in 1998 to 1,255,000 tons in 1999. This
increase was also partly a result of a decrease in sales deliveries in 1998
caused by the passage of Hurricane Georges, as discussed above. Cement selling
prices for 1999 were almost at the same level as in the prior year. Gross margin
in 1999 was 33.5% compared with 33.1% in 1998, remaining essentially the same.
This happened despite increases of 88,000 tons, or 9.9%, in clinker production
and 225,000 tons, or 21.8%, in cement production and was due principally to
higher power and maintenance costs. Due to the high volume of sales during 1999,
the Company had to buy clinker from external sources at a slightly higher cost
than purchases made in 1998, affecting also average cost of sales for 1999.

At the beginning of 2000, the Department of Consumer Affairs of Puerto Rico
abolished its regulations relating to quality standards for cement. This
abolition may have the effect of increasing competition in the cement market in
Puerto Rico, since competitors of the Company that have a cement product not
satisfying the quality standards of the Department may now attempt to enter the
Puerto Rico market. Notwithstanding, all cement sold on the Island has to comply
with the "US Uniform Building Code," which will be enforced through requirements
established by the Regulations and Permits Administration. Management believes
that these requirements, in addition to the market conditions for cement on the
Island, may be a deterrent for the imports of low quality cement.

The House of Representatives and the Senate of Puerto Rico are currently
considering reversing this abolition, but is unclear what the outcome of the
consideration will be. The Company is not certain what effect the abolition will
have, but it may materially affect competition in the cement market.

READY MIX CONCRETE SEGMENT

READY MIX CONCRETE OPERATIONS. Ready mix concrete sales for the year were up
22%. Revenues increased $17.1 million from $77.4 million in 1998 to $94.5
million in 1999. The rise in sales resulted from increases in sales volumes and
average selling prices. Operating margins in 1999 were hurt, however, by an
increase of 2.6% in the average cost per unit produced. This was the result of
higher aggregate costs and labor expenses. Cost of aggregate increased, as this
material became scarce with the expanded level of construction experienced in
1999. The level of construction drove higher labor costs, as well as required
extended delivery schedules, thus affecting delivery expenses. Finally, the last
quarter of the year was affected by an unusual and extended rainy season, which
also impacted labor costs.

ALL OTHERS SEGMENT

LIME OPERATIONS. Operating income for the lime operation decreased 31% to
$258,000 in 1999 compared with $373,000 in 1998. This change can be attributed
to a reduction of 48% in export sales, partially offset by a smaller increase in
sales to local market.

MULTI-WALL PAPER BAGS OPERATIONS. In 1999, there was a marked decrease in sales
volume on the small (pockets) bags division due to lower sales to a large
customer. This decline affected the average cost per unit, as less production
was required to meet actual sales. As a result, gross margin for the year
declined from 21% in 1998 to 18% for the year 1999.

FINANCING OPERATIONS. On March 19, 1998, the Company incorporated a new
subsidiary. PCC was

                                       23
<PAGE>   24
established for the purpose of providing equipment financing, primarily to
existing or prospective customers in construction and related industries. As
mentioned earlier, PCC began operations during September 1998 after obtaining
its license from the Commonwealth's Commissioner of Financial Institutions. In
1999, its first full year of operations, PCC contributed $136,000 to income
before taxes.

LIQUIDITY AND CAPITAL RESOURCES

At December 31, 2000, PRCC had $1.1 million in cash and cash equivalents
compared with $1.6 million at December 31, 1999. Working capital increased from
$57.0 million in 1999 to $63.1 million in 2000 due principally to the increase
of $7.5 million in short-term investments resulting from the re-investment of
matured long-term investments. The current ratio at December 31, 2000 decreased
to 2.94 to 1 from 3.08 to 1 at December 31, 1999. The decrease was principally
due to an increase in notes payable and short-term borrowing.

Net cash provided by operating activities totaled $15.2 million during 2000
compared to $17.3 million in 1999. Also in 2000, PRCC received cash proceeds
from short-term borrowings of $4.7 million and $6.2 million from the redemption
of investments held-to-maturity. These funds were used principally to finance
capital expenditures of $18.8 million and pay $3.9 million in dividends. In
Management's opinion, future cash flows provided by operating activities,
current cash and cash equivalent balances and short-term borrowing facilities
available to the Company, will be sufficient to satisfy its cash requirements in
the future.

Notes and accounts receivable decreased $157,000 to $34.8 million at December
31, 2000 due partially to the decrease in consolidated sales explained above.
Inventories increased $2.6 million from $36.3 million at December 31, 1999 to
$38.9 million at December 31, 2000 due to larger stocks of clinker and spare
parts inventory than in 1999 offset by a decrease in coal inventory. The
increase in clinker inventory resulted from productions of approximately 1.1
million tons during 2000, up 88,000 tons, or 9%, over the 978,000 tons produced
in 1999.

Capital expenditures for 2000 totaled $18.8 million of which $9.6 million was
invested in the cement segment, $4.5 million in the ready mix concrete segment
and $4.7 million in the others segment. Cement segment additions consisted
principally of the installation of a $1.3 million electric power substation, and
improvements and additions to equipment and machinery such as the clinker cooler
and various cement mills. Expenditures in the ready mix concrete segment
included the acquisition of new mobile concrete systems trucks and the
modernization of and improvements to various concrete batching plants. The
additions of $4.7 million in the others segment is principally related to the
construction of the aggregates manufacturing facilities due to commence
operations in 2001.

Long-term notes receivable increased $1.9 million to $8.2 million at December
31, 2000 due to new loans granted by PCC.

Total current liabilities, excluding the current portion of long-term debt, grew
$3.6 million to $27.2 million at December 31, 2000 from $23.6 million at
December 31, 1999. The increase was principally due to an increase of $4.7
million in notes payable and short-term borrowings offset by a decline of $3.3
million in income taxes payable caused by the decline in taxable income
resulting from the decline in sales.

Long-term debt, including the current portion, decreased $1.2 million to $83.9
million at December 31, 2000 from $85.1 million at December 31, 1999. The
decrease reflected new loans totaling $2.9 million used to finance the
operations of PCC, net of $4.7 million in payments made during the year.


                                       24


<PAGE>   25
Puerto Rican Cement Company, Inc.
SELECTED FINANCIAL DATA
-------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                      -----------------------------------------------------------------------------
Year ended December 31,                    2000              1999           1998            1997           1996
                                      -----------------------------------------------------------------------------
<S>                                   <C>              <C>             <C>             <C>             <C>
Operating revenues (1)                $160,508,914     $173,299,816    $148,377,205    $156,774,092    $149,276,622
Income before income tax                11,304,508        4,225,111      14,146,406      22,805,472      21,568,030
Tax provision                            2,169,002       16,267,935       2,765,222       6,802,261       6,879,639
Net income                               9,135,506       12,042,824      11,381,184      16,003,211      14,688,391
Net income per share                          1.76             2.29            2.11            2.91            2.66
Current assets                          95,700,614       84,481,322      91,379,856      81,725,557      86,800,526
Current liabilities                     32,517,304       27,433,111      22,528,532      18,924,124      30,481,303
Working capital                         63,183,310       57,048,211      68,851,324      62,801,433      56,319,223
Current ratio                                 2.94             3.08            4.06            4.32            2.85
Property, plant and equipment, net     173,045,701      168,650,305     162,278,187     158,610,632     143,088,242
Long-term investments                   29,926,624       39,711,592      36,587,498      46,367,581      46,980,338
Total assets                           310,534,803      304,588,826     298,769,557     291,051,116     281,203,510
Long-term debt (exclusive of
  current portion)                      78,685,546       81,365,209      80,541,666      76,179,792      67,023,200
Deferred income taxes                   29,456,239       30,787,824      32,358,532      35,859,657      33,323,351
Stockholders' equity-net               167,091,639      161,897,701     160,258,378     157,064,315     147,421,046
Dividends per share                           0.76             0.76            0.76            0.76            0.70
Cement sales, in tons                    1,100,435        1,255,482       1,037,086       1,097,453       1,038,798
</TABLE>

---------------
(1)      Including revenue from realty operations of: 2000: $778,438; 1999:
         $104,456; 1998: $101,908; 1997: $99,012; 1996: $103,794.


FORWARD-LOOKING STATEMENTS

Certain statements contained in this document, including in this Management's
Discussion and Analysis of Financial Condition and Results of Operations, that
are not historical facts, constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results or performance of the Company
and its businesses to be materially different from that expressed or implied by
such forward-looking statements. Such factors include, among others, the
following: general economic and business conditions; political and social
conditions; government regulations and compliance therewith; demographic
changes; sales mix; pricing levels; changes in sales to, or the identity of,
significant customers; changes in technology, including the technology of cement
production; capacity constraints; availability of raw materials and adequate
labor; availability of liquidity sufficient to meet the Company's needs; the
ability to adapt to changes resulting from acquisitions or new ventures; and
various other factors referred to in this Management's Discussion and Analysis.
The Company could be particularly affected by weather in Puerto Rico, changes in
the Puerto Rico economy, and changes in the Government of Puerto Rico or the
manner in which it regulates the Company.

The Company assumes no obligation to update forward-looking statements to
reflect actual results or changes in or additions to the factors affecting such
forward-looking statements.


                                       25

<PAGE>   26
PRICEWATERHOUSECOOPERS [LOGO]



                        REPORT OF INDEPENDENT ACCOUNTANTS



To the Board of Directors
and Stockholders of
Puerto Rican Cement Company, Inc.


In our opinion, the accompanying consolidated balance sheet and the related
consolidated statement of income, comprehensive income, changes in stockholders'
equity and cash flows present fairly, in all material respects, the financial
position of Puerto Rican Cement Company, Inc. and its subsidiaries at December
31, 2000 and 1999, and the results of their operations and their cash flows for
each of the three years in the period ended December 31, 2000, in conformity
with accounting principles generally accepted in the United States of America.
These financial statements are the responsibility of the Company's management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these statements in accordance with
auditing standards generally accepted in the United States of America which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.


/s/ PricewaterhouseCoopers LLP
------------------------------
PricewaterhouseCoopers LLP
San Juan, Puerto Rico
February 23, 2001


CERTIFIED PUBLIC ACCOUNTANTS
(OF PUERTO RICO)

License No. 216 Expires December 1, 2001
Stamp 1685085 of the P.R. Society of
Certified Public Accountants has been
affixed to the file copy of this report


                                       26
<PAGE>   27


CONSOLIDATED STATEMENT OF INCOME
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                             2000                  1999                  1998
                                                         -------------         -------------         -------------
<S>                                                      <C>                   <C>                   <C>
Net sales                                                $ 159,730,476         $ 173,195,360         $ 148,275,297
Revenue from realty operations, net                            778,438               104,456               101,908
                                                         -------------         -------------         -------------
                                                           160,508,914           173,299,816           148,377,205
                                                         -------------         -------------         -------------
Cost and expenses, including depreciation,
  depletion and amortization of $14,947,186
  (1999 - $14,049,346; 1998 - $13,331,479):
    Cost of sales                                          123,420,277           126,738,540           108,706,775

    Selling, general and administrative expenses            23,670,105            27,508,008            24,205,913
                                                         -------------         -------------         -------------

                                                           147,090,382           154,246,548           132,912,688
                                                         -------------         -------------         -------------

Income from operations                                      13,418,532            19,053,268            15,464,517
                                                         -------------         -------------         -------------

Other expense (income):
  Interest and financial charges, net of interest
    charged to construction                                  6,317,170             6,160,542             5,216,096
  Interest income                                           (3,865,751)           (3,655,997)           (3,398,485)
  Gain on sale of investments                                       --                    --            (1,174,705)
  Other                                                       (337,395)              280,788               675,205
                                                         -------------         -------------         -------------

                                                             2,114,024             2,785,333             1,318,111
                                                         -------------         -------------         -------------

Income before income taxes                                  11,304,508            16,267,935            14,146,406
                                                         -------------         -------------         -------------

Provision for income taxes:
  Current                                                    3,500,587             5,795,819             6,080,332
  Deferred                                                  (1,331,585)           (1,570,708)           (3,315,110)
                                                         -------------         -------------         -------------

                                                             2,169,002             4,225,111             2,765,222
                                                         -------------         -------------         -------------
         Net income                                      $   9,135,506         $  12,042,824         $  11,381,184
                                                         =============         =============         =============

Earnings per share:
  Basic and diluted net income per share                 $        1.76         $        2.29         $        2.11
                                                         =============         =============         =============
</TABLE>



   The accompanying notes are an integral part of these financial statements.


                                       27
<PAGE>   28
CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                           2000                1999
                                                                       ------------        ------------
                                         ASSETS
 <S>                                                                   <C>                 <C>
 Cash and cash equivalents                                             $  1,141,378        $  1,630,750
 Short-term investments                                                  13,534,460           6,001,346
 Notes and accounts receivable, net                                      34,811,499          34,968,168
 Inventories                                                             38,923,484          36,301,359
 Prepaid expenses                                                         7,289,793           5,579,699
                                                                       ------------        ------------

             Total current assets                                        95,700,614          84,481,322

 Property, plant and equipment, net                                     173,045,701         168,650,305
 Long-term investments                                                   29,926,624          39,711,592
 Long-term notes receivable                                               8,169,044           6,225,351
 Other assets                                                             3,692,820           5,520,256
                                                                       ------------        ------------

            Total assets                                               $310,534,803        $304,588,826
                                                                       ============        ============
                           LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:
   Notes payable and short-term borrowing                              $  5,939,989        $    654,157
   Current portion of long-term debt                                      5,247,578           3,805,714
   Accounts payable                                                      10,635,418           8,679,411
   Accrued liabilities                                                    8,984,329           9,233,146
   Dividends payable                                                        985,392             985,392
   Income taxes payable                                                     724,598           4,075,291
                                                                       ------------        ------------
                Total current liabilities                                32,517,304          27,433,111
                                                                       ------------        ------------
 Long-term liabilities:
   Long-term debt, less current portion                                  78,685,546          81,365,209
   Deferred income taxes                                                 29,456,239          30,787,824
   Other long-term liabilities                                            2,784,075           3,104,981
                                                                       ------------        ------------
                Total long-term liabilities                             110,925,860         115,258,014
                                                                       ------------        ------------
                Total liabilities                                       143,443,164         142,691,125
                                                                       ------------        ------------
 Stockholders' equity:
   Preferred stock, authorized 2,000,000 shares of $5.00
     par value each; none issued
   Common stock, authorized 20,000,000 shares of $1.00
       par value each; 6,000,000 shares issued                            6,000,000           6,000,000
   Additional paid-in capital                                            14,702,914          14,702,914
   Retained earnings                                                    169,414,979         164,221,041
                                                                       ------------        ------------
                                                                        190,117,893         184,923,955
     Less - 813,726 shares of common stock
        in treasury, at cost                                             23,026,254          23,026,254
                                                                       ------------        ------------
                Total stockholders' equity                              167,091,639         161,897,701
                                                                       ------------        ------------
 Commitments and contingent liabilities
                                                                       ------------        ------------

                Total liabilities and stockholders' equity             $310,534,803        $304,588,826
                                                                       ============        ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.


                                       28
<PAGE>   29

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
-------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                2000               1999                 1998
                                                             ----------        ------------         ------------
<S>                                                          <C>               <C>                  <C>
Net income                                                   $9,135,506        $ 12,042,824         $ 11,381,184
                                                             ----------        ------------         ------------

Other comprehensive income, before tax:
    Unrealized gain on available-for-sale
      securities:
       Unrealized gain arising during the period                     --                  --              420,945
       Reclassification of realized gain included
         in net income                                               --                  --           (1,174,705)
                                                             ----------        ------------         ------------

                                                                     --                  --             (753,760)

    Income taxes related to items of other
      comprehensive income                                           --                  --              186,015
                                                             ----------        ------------         ------------

                                                                     --                  --             (567,745)
                                                             ----------        ------------         ------------

    Comprehensive income                                     $9,135,506        $ 12,042,824         $ 10,813,439
                                                             ----------        ------------         ------------
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                       29
<PAGE>   30

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY

<TABLE>
<CAPTION>
                                                               2000                1999                 1998
                                                           ------------        ------------         ------------
<S>                                                          <C>               <C>                  <C>
Common stock:
    Balance at beginning and end of year                   $  6,000,000        $  6,000,000         $  6,000,000
                                                           ------------        ------------         ------------

Additional paid-in capital:
    Balance at beginning and end of year                     14,702,914          14,702,914           14,702,914
                                                           ------------        ------------         ------------

Accumulated other comprehensive income:
    Balance at January 1                                             --                  --              567,745
    Other comprehensive income                                       --                  --             (567,745)
                                                           ------------        ------------         ------------

    Balance at December 31                                           --                  --                   --
                                                           ------------        ------------         ------------

Retained earnings:
    Balance at January 1                                    164,221,041         156,170,341          148,878,203
    Net income                                                9,135,506          12,042,824           11,381,184
    Dividends declared of $0.76 per share                    (3,941,868)         (3,992,124)          (4,089,046)
                                                           ------------        ------------         ------------

    Balance at December 31                                  169,414,979         164,221,041          156,170,341
                                                           ------------        ------------         ------------

Treasury stock:
    Balance at January 1                                    (23,026,254)        (16,614,877)         (13,084,547)
    Treasury shares acquired                                         --          (6,411,377)          (3,530,330)
                                                           ------------        ------------         ------------

    Balance at December 31                                  (23,026,254)        (23,026,254)         (16,614,877)
                                                           ------------        ------------         ------------

Total stockholders' equity                                 $167,091,639        $161,897,701         $160,258,378
                                                           ------------        ------------         ------------
</TABLE>


   The accompanying notes are an integral part of these financial statements.


                                       30
<PAGE>   31
Consolidated Statement of Cash Flows
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                        2000                 1999                 1998
                                                                    ------------         ------------         ------------
<S>                                                                 <C>                  <C>                  <C>
Cash flows from operating activities:
  Net income                                                        $  9,135,506         $ 12,042,824         $ 11,381,184
                                                                    ------------         ------------         ------------
  Adjustments to reconcile net income to net
     cash provided by operating activities:
        Depreciation and depletion                                    14,891,975           13,994,135           13,276,268
        Amortization of goodwill                                          55,211               55,211               55,211
        Provision for doubtful accounts                                1,005,000              420,230              145,424
        Accretion of discounts on investments                         (1,972,146)          (2,306,657)          (2,627,384)
        Provision for deferred income taxes                           (1,331,585)          (1,570,708)          (3,315,110)
        (Gain) loss on sale of property, plant and equipment            (169,220)             106,855             (225,804)
        Gain on sale of investments                                                                             (1,174,705)
        Changes in assets and liabilities:
          Increase in accounts receivable                             (1,838,802)          (5,037,764)            (844,922)
          Increase in inventories                                     (2,622,125)          (2,355,419)          (1,060,197)
          Increase in prepaid expenses                                (1,805,533)            (492,481)            (554,148)
          Decrease (increase) in other assets                            772,278           (1,024,683)            (258,649)
          Increase (decrease) in accounts payable                      2,684,487             (140,663)           1,976,818
          (Decrease) increase in accrued liabilities                    (248,817)           1,008,172            1,149,814
          (Decrease) increase in income taxes payable                 (3,350,693)           2,617,253             (733,271)
          (Decrease) increase in long-term liabilities                   (54,143)              22,532               59,221
                                                                    ------------         ------------         ------------

          Total adjustments                                            6,015,887            5,296,013            5,868,566
                                                                    ------------         ------------         ------------

          Net cash provided by operating activities                   15,151,393           17,338,837           17,249,750
                                                                    ------------         ------------         ------------

Cash flows from investing activities:
  Issuance of notes receivable                                        (2,980,802)          (5,150,492)          (3,849,309)
  Collections on notes receivable                                      2,027,580            1,346,889              540,108
  Capital expenditures                                               (18,845,785)         (20,703,609)         (17,699,254)
  Proceeds from sale of property, plant and equipment                    417,766              230,501              981,236
  Proceeds from sale of investments available-for-sale                                                          13,248,180
  Proceeds from sale of short-term investments                                                                   1,711,408
  Redemptions and maturities of investments                            6,224,000           19,108,000           10,710,000
  Purchase of investments held-to-maturity                            (2,000,000)          (9,860,135)         (16,360,398)
                                                                    ------------         ------------         ------------

          Net cash used in investing activities                      (15,157,241)         (15,028,846)         (10,718,029)
                                                                    ------------         ------------         ------------

Cash flows from financing activities:
  Purchase of treasury stock                                                  --           (6,411,377)          (3,530,330)
  Increase (decrease) in notes payable and
     short-term borrowings                                             4,695,843              103,384             (117,951)
  Proceeds from loans                                                  2,900,000            5,249,000            7,000,000
  Payment of principal on long-term debt                              (4,137,799)          (3,072,392)          (1,295,258)
  Dividends paid                                                      (3,941,568)          (4,028,756)          (4,102,916)
                                                                    ------------         ------------         ------------

          Net cash used in financing activities                         (483,524)          (8,160,141)          (2,046,455)
                                                                    ------------         ------------         ------------

(Decrease) increase in cash and cash equivalents                        (489,372)          (5,850,150)           4,485,266

Cash and cash equivalents at beginning of year                         1,630,750            7,480,900            2,995,634
                                                                    ------------         ------------         ------------

Cash and cash equivalents at end of year                            $  1,141,378         $  1,630,750         $  7,480,900
                                                                    ============         ============         ============
Supplemental cash flow disclosure:
  Interest paid                                                     $  7,109,000         $  6,135,000         $  5,611,000
                                                                    ============         ============         ============
  Income taxes paid                                                 $  7,238,000         $  3,488,000         $  6,197,000
                                                                    ============         ============         ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.


                                       31
<PAGE>   32
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999

-------------------------------------------------------------------------------

NOTE 1

REPORTING ENTITY AND SUMMARY OF ACCOUNTING POLICIES.

The Company was organized in 1938 under the laws of the Commonwealth of Puerto
Rico. It is engaged primarily in the production and sale of cement and related
products principally within the island of Puerto Rico.

USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

SUMMARY OF ACCOUNTING POLICIES

The following summarizes the most significant accounting policies judged by
management to be the most appropriate in the circumstances to present the
Company's consolidated financial position, results of operations and cash flows
in conformity with generally accepted accounting principles.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of the Company and
all of its wholly-owned subsidiaries: Florida Lime Corporation ("FLC"), Ready
Mix Concrete, Inc. ("RMC"), Desarrollos Multiples Insulares, Inc. ("DMI"), Poly
Bags and Packaging, Inc. ("PBPI"), and Ponce Capital Corporation ("PCC"). All
material intercompany accounts and transactions have been eliminated in
consolidation.

STATEMENT OF CASH FLOWS

For purposes of the statement of cash flows, interest-bearing deposits and other
investments with maturities of less than three months at the time of acquisition
are considered cash equivalents.

REVENUE RECOGNITION

Revenue is recognized when the product is shipped in accordance with billing
terms which are generally FOB shipping point.

INVESTMENTS

Investments in equity securities that have readily determinable fair values and
all investments in debt securities are accounted for as follows:

-        Debt securities which the Company has the positive intent and ability
         to hold to maturity are classified as investments held-to-maturity and
         reported at cost, adjusted for amortization of premiums or accretion of
         discounts. Such debt securities are reported as short-term or long-term
         investments, depending on whether the remaining term to maturity is
         shorter or longer than one year.


                                       32

<PAGE>   33
 -       Debt and equity securities that are bought and held principally for
         the purpose of selling them in the near term are classified as trading
         securities and reported at fair value, with unrealized gains and losses
         included in earnings.

-        Debt and equity securities not classified as either held-to-maturity or
         trading are classified as investments available-for-sale and reported
         at fair value, with unrealized gains and losses excluded from earnings
         and reported, net of taxes, in a separate component of stockholders'
         equity.

At December 31, 2000 and 1999, all investment securities held by the Company
were classified as held-to-maturity.

Premiums and discounts are amortized as an adjustment to interest income over
the life of the related securities using a method that approximates the interest
method. Realized gains or losses on securities are reported in earnings. When
computing realized gains or losses, the cost of securities is determined on the
specific identification method.

INVENTORIES

Inventories are stated at the lower of average cost or market. Inventory cost
includes the related material, labor and overhead cost.

Land for sale includes the original cost of land and all development costs
incurred to bring land to a saleable condition.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at cost less accumulated depreciation
and depletion. Depreciation is provided on the straight-line basis over the
estimated useful life of each type of asset. Depletion of quarries is calculated
on the units-of-production method.

Maintenance and repair costs which do not extend the life or improve productive
capacity of the respective assets are expensed as incurred. Cost of renewals and
betterments is capitalized. When assets are sold, retired or otherwise disposed
of, their cost and related accumulated depreciation are removed from the
accounts, and any gain or loss is credited or charged to income.

INTEREST CHARGED TO CONSTRUCTION

The Company capitalizes interest as a component of the cost of construction.
Capitalized interest totaled approximately $353,000 and $406,000 in 2000 and
1999, respectively.

GOODWILL

Goodwill, included in other assets, is amortized on a straight-line basis over
the estimated period of benefit not to exceed 30 years.

INCOME TAXES

Income taxes are accounted for following an asset and liability approach. Under
this approach, deferred taxes are recognized for temporary differences between
the tax and financial reporting bases of assets and liabilities, using enacted
tax laws and rates.

EMPLOYEE BENEFIT PLANS

The Company has non-contributory defined benefit pension plans covering
substantially all of its non-union employees and those of its wholly-owned
subsidiaries. The pension benefits are based on years of service and the
employees' average compensation as defined in the respective plans.


                                       33
<PAGE>   34
Pension costs are computed on the basis of accepted actuarial methods. The
Projected Unit Credit method is used to determine pension expense. Pension
expense includes service cost for benefits earned during the period, interest
cost and amortization of unrecognized prior service cost, of gains and losses on
plan assets and of the transition amount over a 15-year period. The Company's
funding policy is to contribute annually the maximum amount deductible for
income tax.

The Company also offers postretirement medical and life insurance benefits to
certain retired employees under an unfunded plan. The expected cost of providing
postretirement health care and other benefits to an employee or its
beneficiaries is recognized over their service period, is computed based on
accepted actuarial methods, and includes service costs for benefits earned
during the period, interest costs and amortization of actuarial gains and
losses.

EARNINGS PER SHARE

Earnings per share ("EPS") are computed based on the weighted average number of
shares of common stock outstanding during the year. The weighted average number
of shares outstanding was 5,186,274 in 2000, 5,266,607 in 1999 and 5,392,491 in
1998. The Company has no dilutive or potentially dilutive securities
outstanding. Accordingly, there is no difference between basic and diluted EPS.

PROFIT RECOGNITION ON SALES OF REAL ESTATE

Land and development costs are allocated proportionately to lots sold based on
area and total project cost. Income on sale of land is recognized at the time of
sale except where the collection of such income is not reasonably assured and
revenue therefore is not measurable.

TREASURY STOCK

Treasury stock is carried at cost.

RECLASSIFICATIONS

Certain reclassifications have been made to the 1999 and 1998 financial
statements to conform with the 2000 presentation.

ACCOUNTING FOR DERIVATIVE AND SIMILAR FINANCIAL INSTRUMENTS AND FOR
HEDGING ACTIVITIES

At December 31, 2000 and 1999, the Company did not carry derivative financial
instruments. The Company adopted the statement of Financial Accounting Standards
("SFAS") No. 133, "Accounting for Derivative and Similar Financial Instruments
and for Hedging Activities", effective July 1, 1998. As permitted by this
Statement, upon its adoption, the Company reclassified to available-for-sale
investments that were previously classified as held-to-maturity. These
investments had a book value of $7,842,000 and a market value of $8,033,000.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS:

Transfer and Servicing of Financial Assets and Extinguishment of Liabilities

The Financial Accounting Standard Board ("FASB") recently issued SFAS 140
"Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities, a replacement of SFAS 125." SFAS 140 revises the standards for
accounting for security transactions and other transfers of financial assets and
collateral and requires certain disclosures, but it carries over most of SFAS
125's provisions without reconsideration. SFAS 140 is effective on transactions
occurring after March 31, 2000. Management considers that the impact of SFAS 140
on the Company's financial statements is not significant.


                                       34
<PAGE>   35
NOTE 2
NOTES AND ACCOUNTS RECEIVABLE
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                      2000               1999
                                                  -----------        -----------
    <S>                                           <C>                <C>
    Notes receivable:
     Trade                                        $    17,558        $   242,529
     Other                                          2,408,128          3,302,907
                                                  -----------        -----------

                                                    2,425,686          3,545,436
                                                  -----------        -----------
    Accounts receivable:
     Trade                                         30,858,699         29,975,647
     Employees and affiliated companies               415,855            489,134
     Other                                          2,088,070          2,058,910
                                                  -----------        -----------

                                                   33,362,624         32,523,691

     Less - Allowance for doubtful accounts           976,811          1,100,959
                                                  -----------        -----------

                                                   32,385,813         31,422,732
                                                  -----------        -----------

                                                  $34,811,499        $34,968,168
                                                  ===========        ===========
</TABLE>

NOTE 3
INVENTORIES
--------------------------------------------------------------------------------
   Inventories at December 31, consist of:

<TABLE>
<CAPTION>
                                                      2000               1999
                                                  -----------        -----------
<S>                                               <C>                <C>
Finished products                                 $ 2,423,978        $ 2,434,617
Work-in-process                                     9,310,782          7,026,102
Raw materials                                       4,426,962          3,894,011
Coal and fuel oil                                     589,118          2,011,451
Maintenance and operating supplies                 21,545,872         20,011,973
Land for sale                                         626,772            923,205
                                                  -----------        -----------

                                                  $38,923,484        $36,301,359
                                                  ===========        ===========
</TABLE>


                                       35

<PAGE>   36

NOTE 4.

PROPERTIES, PLANT AND EQUIPMENT
--------------------------------------------------------------------------------

Property, plant and equipment at December 31, consist of:

<TABLE>
<CAPTION>
                                           USEFUL LIFE
                                             IN YEARS         2000                 1999
                                          -------------   -------------        -------------
<S>                                       <C>             <C>                  <C>
Land and quarries                                         $  16,606,592        $ 16,126,838
Buildings and structures                         50          50,927,723          47,901,085
Machinery and equipment                        5-20         138,286,584         128,578,361
Pollution control equipment                      25          33,421,036          32,745,736
Automobiles and trucks                         3-10          31,067,066          29,482,127
Rental property                                  10             653,524             653,524
Construction in progress                                      9,779,672           6,493,533
                                                           ------------        ------------

                                                            280,742,197         261,981,204
Less - Accumulated depreciation
  and depletion                                             107,696,496          93,330,899
                                                           ------------        ------------

                                                           $173,045,701        $168,650,305
                                                           ============        ============
</TABLE>


NOTE 5

INVESTMENT

-------------------------------------------------------------------------------

The carrying and market values, and scheduled maturities of investments at
December 31, are as follows:

<TABLE>
<CAPTION>
                                                             2000                                 1999
                                                 AMORTIZED           MARKET            AMORTIZED            MARKET
                                                   COST               VALUE              COST                VALUE
                                                -----------        -----------        -----------        -----------
<S>                                             <C>                <C>                <C>                <C>
Short-term investments held-to-maturity,
  at amortized cost:

Municipal and U.S.
 Government agency securities                   $ 9,813,626        $ 9,792,934        $ 1,361,693        $ 1,352,941

U.S. Treasury securities                          3,720,834          3,703,150          4,639,653          4,592,494
                                                -----------        -----------        -----------        -----------
                                                $13,534,460        $13,496,084        $ 6,001,346        $ 5,945,435
                                                ===========        ===========        ===========        ===========

Long-term investments held-to-maturity,
 at amortized cost:

U.S. Treasury securities
   Due from 1 to 5 years                                 --                 --        $ 3,545,342        $ 3,469,750
                                                -----------        -----------        -----------        -----------

   Due after 10 years                           $23,226,624        $28,284,200         21,687,760         21,853,300
                                                -----------        -----------        -----------        -----------

                                                 23,226,624         28,284,200         25,233,102         25,323,050
                                                -----------        -----------        -----------        -----------

Municipal and U.S.
 Government agency securities
   Due from 1 to 5 years                          6,700,000          6,700,000         14,478,490         14,267,056
                                                -----------        -----------        -----------        -----------

                                                $29,926,624        $34,984,200        $39,711,592        $39,590,106
                                                ===========        ===========        ===========        ===========
</TABLE>


                                       36
<PAGE>   37
NOTE 5 - CONTINUED

-------------------------------------------------------------------------------

The scheduled maturities of investments, based on their carrying values, at
December 31, 2000, are summarized below:
<TABLE>
<CAPTION>

<S>                                                                      <C>
Due within one year                                                      $ 13,534,460
Due within 1 to 5 years                                                     6,700,000
Due after 10 years                                                         23,226,624
                                                                         ------------

                                                                         $ 43,461,084
                                                                         ------------
<CAPTION>

 Gross and net unrealized gains and losses at December 31, amounted to:

                                                                             2000               1999
                                                                          -----------        ----------
<S>                                                                       <C>                <C>
Gross unrealized gains                                                    $ 5,058,206        $  826,782
Gross unrealized losses                                                       (39,006)       (1,004,179)
                                                                          -----------        ----------

Net unrealized gain (loss)                                                $ 5,019,200        $ (177,397)
                                                                          -----------        ----------
</TABLE>


No purchases nor sales of available-for-sale investments occurred during 2000
and 1999. Gross proceeds and gross realized gain from the sale of
available-for-sale investments in 1998, amounted to $13,248,000 and $1,175,000,
respectively.

During 1998, gross proceeds from the sale of short-term investments
held-to-maturity amounted to $1,711,000. These securities were sold near their
maturity.


===============================================================================
NOTE 6

OTHER ASSETS
-------------------------------------------------------------------------------

Other assets at December 31, consist of:

<TABLE>
<CAPTION>
                                                                             2000               1999
                                                                          ----------         ----------
     <S>                                                                  <C>                <C>
     Investment in real estate                                            $   94,533         $   94,533
     Goodwill, net of accumulated amortization
      of $277,846 (1999 - $222,635)                                        1,375,687          1,430,898
     Other long-term assets                                                2,509,015          3,994,825
                                                                          ----------         ----------

                                                                          $3,979,235         $5,520,256
                                                                          ==========         ==========
</TABLE>


                                       37
<PAGE>   38

NOTE 7

ACCRUED LIABILITIES
-------------------------------------------------------------------------------
Accrued liabilities at December 31, consist of:


<TABLE>
<CAPTION>
                                                                  2000              1999
                                                              -----------       -----------
     <S>                                                      <C>               <C>
     Accrued taxes other than on income                       $ 1,780,909       $ 1,466,892
     Accrued payroll expenses                                   3,432,313         3,592,073
     Accrued interest payable                                   2,278,915         2,302,510
     Other accrued liabilities                                  1,492,192         1,871,671
                                                              -----------       -----------

                                                              $ 8,984,329       $ 9,233,146
                                                              -----------       ------------
</TABLE>


===============================================================================


NOTE 8

SHORT-TERM BORROWING
--------------------------------------------------------------------------------



The Company has lines of credit available for short-term borrowing and for
discount of trade notes receivable in the aggregate amount of $42,000,000.
However, under other loan agreements with financial institutions, the Company
may discount trade notes receivable up to $10,000,000 through 2000. No
commitment fees are paid on these credit facilities.

The maximum aggregate short-term borrowing outstanding at any month-end was
$7,300,000 in 2000 and $2,500,000 in 1999. The approximate average aggregate
short-term borrowing outstanding during the year was approximately $5,719,000 in
2000 and $56,000 in 1999. The weighted average interest rate of such borrowings
computed annually was 6.92% during 2000 and 5.94% during 1999.

At December 31, 2000, short-term borrowings amounted to $5,350,000. There were
no borrowings outstanding under these facilities at December 31, 1999.


                                       38


<PAGE>   39

CONSOLIDATED FINANCIAL STATEMENTS

NOTE 9

LONG-TERM DEBT
-------------------------------------------------------------------------------


Long-term debt at December 31, consist of:

<TABLE>
<CAPTION>
                                                                                      2000               1999
                                                                                   -----------        -----------
<S>                                                                                <C>                <C>
7.29% Series A Senior Secured Notes, payable in full on
 January 27, 2017, interest payable semiannually                                   $50,000,000        $50,000,000

7.34% Series B Senior Secured Notes, payable in full on
 January 27, 2017, interest payable semiannually                                    20,000,000         20,000,000

7.15% (1999 - 6.32%) variable rate note, payable in quarterly installments
 of $200,000 from 1999 to 2000, followed by quarterly installments of
 $500,000 in 2001 and 2002; interest payable monthly                                 4,000,000          4,800,000

Drawings on $12 million revolving credit facility due in sixty equal
 monthly installments of $75,000 commencing in December 1998 through August
 1999; and of $141,667 from September 1999, interest payable monthly
 ranging from 5.85% to 7.00%                                                         8,115,552          7,258,333

Drawing on $2.5 million revolving credit facility due in sixty equal
 monthly installments of $41,667 commencing in November
 1998, interest payable monthly at 5.34%                                             1,416,658          1,916,662

7.00% notes payable, due in installments until July 2001                               150,000            347,772

Other, interest ranging from 3.75% to 5.75% due in monthly
 installments from May 1999 to July 2001                                               250,914            848,156
                                                                                   -----------        -----------

          Total                                                                     83,933,124         85,170,923

          Less - Current portion                                                     5,247,578          3,805,714
                                                                                   -----------        -----------

          Total long-term debt                                                     $78,685,546        $81,365,209
                                                                                   ===========        ===========
</TABLE>


The Series A and Series B Senior Secured Notes are secured by a $70 million
zero-coupon U.S. Treasury bond pledged as collateral. The bond was purchased for
$17.6 million in December 1996 and will accrue to $70 million shortly after the
maturity of the Notes. This bond is included in long-term investments
held-to-maturity.


                                       39
<PAGE>   40
         Aggregate maturities of long-term debt at December 31, 2000, are as
         follows:

<TABLE>
<CAPTION>

                   YEARS                                  AMOUNT
                   -----                                  ------
                   <S>                               <C>
                   2001                              $   5,247,578
                   2002                                  4,846,668
                   2003                                  2,535,547
                   2004                                  1,013,333
                   2005                                    289,998
                   2006 and thereafter                  70,000,000
                                                     -------------
                                                     $  83,933,124
                                                     =============
</TABLE>


         In September 1985, the Company restructured the terms of its
         outstanding debt with the Government Development Bank for Puerto Rico
         ("GDB"). The maturity date on the loans from GDB was extended to
         September 2002, and the annual interest rate was fixed with no interest
         or principal payments required before maturity. Simultaneously, the
         Company placed U.S. government securities, with a cost of $8 million
         and a maturity value of $49.8 million, in an irrevocable trust. The
         principal and interest of these securities will be sufficient to fund
         the scheduled principal and interest payments on the Company's debt
         with the GDB. Accordingly, such debt was considered extinguished in
         1985 and is not included as a liability in the consolidated balance
         sheet. The total balance of debt with GDB, not included in the
         consolidated balance sheet, consisting of principal plus accumulated
         interest, amounted to $45.6 million at December 31, 2000 (1999 - $43.7
         million).

         The Series A and Series B Senior Secured Notes and other loan
         agreements impose certain restrictions on the Company. The most
         important restrictions are limitations on unsecured short-term
         borrowing and on discounting with recourse of trade paper from
         customers (See Note 8), maintaining working capital in excess of
         certain defined minimums and limitations on funded debt and other
         indebtedness. Other restrictions under such loan agreements relate to
         investments in and advances to subsidiaries and other persons,
         disposition of fixed assets, and payment of dividends. At December 31,
         2000, the Company was in compliance with the provisions of the loan
         agreements.

         NOTE 10

         INCOME TAXES

         Consolidated tax returns are not permitted under the 1994 Puerto Rico
         Internal Revenue Code (the "Code"); therefore, losses, if any, of
         subsidiaries cannot be used to offset taxable income of other members
         of the consolidated group. However, the Code provides a 100% deduction
         for dividends from controlled Puerto Rico corporations.

         The Code allows an accelerated flexible depreciation method for certain
         property purchased prior to 1996, by which a taxpayer may claim
         depreciation at any rate without reference to useful lives. The
         depreciation claimed is limited to an amount not


                                       40
<PAGE>   41
         greater than income before taxes (determined without taking into
         consideration the depreciation deduction). Deferred income taxes have
         been accumulated primarily from using the flexible depreciation method
         for tax purposes only.

         The benefits of the accelerated depreciation methods are limited by the
         alternative minimum tax ("AMT") provisions of the income tax law. The
         AMT is based on 22% of regular taxable income with certain adjustments
         for preference items, one of which relates to the accelerated
         depreciation methods. Any AMT paid may be used to reduce the regular
         tax liability of future years, to the extent that the regular tax
         exceeds the AMT.

         The reconciliation of the difference between the Puerto Rico statutory
         tax rate on income before taxes and the consolidated effective tax rate
         follows:

<TABLE>
<CAPTION>
                                                          2000                        1999                      1998
                                                 -----------------------    ------------------------   -----------------------
                                                                 % OF                        % OF                       % OF
                                                                PRE-TAX                     PRE-TAX                    PRE-TAX
                                                    AMOUNT       INCOME        AMOUNT       INCOME        AMOUNT       INCOME
                                                 -----------    --------    -----------     --------   -----------    ---------
<S>                                              <C>            <C>         <C>              <C>       <C>             <C>
Computed tax provision                           $ 4,408,758      39.0      $ 6,344,495      39.0      $ 5,517,098      39.0

Increase (decrease) in taxes resulting from:
 Exempt interest earned                           (1,123,203)     (9.9)      (1,177,897)     (7.2)      (1,229,030)     (8.7)
 Interest deducted for tax but not
     for financial statements                       (698,223)     (6.2)        (698,223)     (4.3)        (698,223)     (4.9)
 Discount on income tax credits                     (442,660)     (3.9)        (122,150)     (0.8)        (712,000)     (5.0)
 Valuation allowance on carryforward
    losses of subsidiary                                                                                   280,000       2.0
 Effect of capital gain preferential rate                                                                 (196,071)     (1.4)
 Other items                                          24,330       0.2         (121,114)     (0.7)        (196,552)     (1.4)
                                                 -----------      ----      -----------      ----      -----------     -----
                                                 $ 2,169,002      19.2      $ 4,225,111      26.0      $ 2,765,222      19.6
                                                 ===========      ====      ===========      ====      ===========     =====
</TABLE>


The deferred tax assets and liabilities at December 31, are as follows:


<TABLE>
<CAPTION>
                                                                2000                                       1999
                                                    DEFERRED                 DEFERRED           DEFERRED             DEFERRED
                                                   TAX ASSETS            TAX LIABILITIES       TAX ASSETS         TAX LIABILITIES
                                                  -----------            ---------------      -----------         ---------------
 <S>                                               <C>                   <C>                  <C>                 <C>
 Current:
 Prepaid pension cost                                                     $  1,158,706                             $  1,325,329
 AMT credit                                                                                   $   155,487
 Allowance for doubtful accounts                  $   380,956                                     263,602

 Non-current:
 Post-retirement benefit liability                  1,085,789                                   1,210,943
 Property, plant and equipment                                              29,942,197                               31,240,323
 Other                                                177,919                                     174,739                26,943
                                                  -----------             ------------        -----------          ------------
 Total deferred tax asset/liability               $ 1,644,664               31,100,903        $ 1,804,771            32,592,595
                                                  ===========             ============        ===========          ============
 Net deferred tax liability                                               $ 29,456,239                             $ 30,787,824
                                                                          ============                             ============


</TABLE>


                                       41
<PAGE>   42
         One of the consolidated subsidiaries enjoys a tax exemption granted
         under the provisions of the Puerto Rico Tax Incentives Act of 1987.
         Under this grant, the exemption rates applicable to income, property
         and municipal taxes range from 50% to 90% through year 2008.

         One of the Company's subsidiaries has net operating losses available to
         reduce future taxable income amounting to $893,000 which expire between
         2004 and 2006.

         The subsidiaries' aggregate retained earnings amounted to $28,760,000
         at December 31, 2000, (1999 - $27,702,000) and arose substantially from
         partially tax exempt operations. The subsidiaries' retained earnings
         are substantially exempt upon distribution to the Company; therefore,
         no income taxes have been provided on such earnings.

         NOTE 11

         EMPLOYEE BENEFIT PLANS

         The following table sets forth the Company's pension and
         post-retirement benefit obligations and amounts recognized in the
         Company's consolidated balance sheet at December 31:


<TABLE>
<CAPTION>
                                                                PENSION BENEFITS                    OTHER BENEFITS
                                                             2000              1999               2000           1999

<S>                                                     <C>                <C>                <C>               <C>
Change in benefit obligation
   Benefit obligation at beginning of year              $ 28,885,569       $ 31,476,642       $ 2,632,683       $ 2,924,705
   Service cost                                              676,674            798,783            51,124            59,001
   Interest cost                                           2,213,161          2,068,008           201,298           190,327
   Actuarial gain (loss)                                     502,847         (3,814,678)          103,811          (301,269)
   Benefits paid                                          (1,817,291)        (1,643,186)         (275,690)         (240,081)
                                                        ------------       ------------       -----------       -----------

   Benefit obligation at end of year                      30,460,960         28,885,569         2,713,226         2,632,683
                                                        ------------       ------------       -----------       -----------

Change in plan assets
   Fair value of plan assets at beginning
    of year                                               33,419,572         34,959,475                --                --
   Actual return on plan assets                           (1,687,066)           103,283                --                --
   Benefits paid                                          (1,817,291)        (1,643,186)               --                --
                                                        ------------       ------------       -----------       -----------

   Fair value of plan assets at end of year               29,915,215         33,419,572                --                --
                                                        ------------       ------------       -----------       -----------

   Funded status - Fair value of plan
     assets (less) greater than benefit obligation          (545,745)         4,534,003        (2,713,226)       (2,632,683)
   Unrecognized net actuarial loss (gain)                  3,093,318         (2,038,376)          (70,849)         (174,660)
   Unrecognized prior service cost                           483,262            633,281
   Unrecognized portion of transition
     asset at January 1, 1987, being
     recognized over 15 years                                (59,794)          (152,759)
                                                        ------------       ------------       -----------       -----------

   Prepaid (accrued) benefit cost                       $  2,971,041       $  2,976,149       $(2,784,075)      $(2,807,343)
                                                        ============       ============       ===========       ===========
</TABLE>


                                       42


<PAGE>   43


The weighted average discount rate and rate of increase in future compensation
levels used in determining the actuarial present value of benefit obligation and
the projected benefit obligation were as follows:

<TABLE>
<CAPTION>

                                                              Pension Benefits           Other  Benefits
                                                              -----------------         -----------------
                                                              2000         1999         2000         1999
                                                              ----         ----         ----         ----
<S>                                                           <C>          <C>          <C>          <C>
Weighted average assumptions as of December 31:
  Discount rate                                               7.75%        8.00%        7.75%        8.00%
  Expected return on plan assets                              9.00%        9.00%          --           --
  Rate of compensation increase                               5.50%        5.50%        5.25%        5.25%
</TABLE>


In measuring the post-retirement healthcare and life insurance benefit
obligation for 2000, the Company assumed a 9.5% annual rate of increase in the
per-capita cost of covered healthcare benefits. The rate is assumed to decrease
gradually to 5.5% through the year 2019 and remain at that level thereafter.

Assumed healthcare cost trend rates have a significant effect on the amounts
reported for the healthcare plans. A one-percentage-point change in assumed
healthcare cost trend rates would have the following effects:


<TABLE>
<CAPTION>
                                                                     2000                        1999
                                                            ---------------------       -----------------------
                                                                1%         1%             1%             1%
                                                            Increase    Decrease       Increase       Decrease
                                                            ---------   ---------      --------       --------
<S>                                                         <C>         <C>            <C>            <C>
Effect on total of service and interest cost components     $  18,563   $ (16,627)       $  18,551     $ (16,623)
Effect on post-retirement benefit obligation                $ 132,585   $(124,823)       $ 128,831     $(121,245)
</TABLE>


 The components of net periodic benefit cost are as follows:

<TABLE>
<CAPTION>
                                                  Pension Benefits                            Other Benefits
                                       ---------------------------------------      ------------------------------------
                                         2000           1999           1998           2000          1999          1998
                                       ---------      ---------      ---------      ---------     ---------     --------
<S>                                    <C>            <C>            <C>            <C>           <C>           <C>
Service cost                           $ 676,674      $ 798,783      $ 745,360      $  51,124     $  59,001     $ 58,821
Interest cost                          2,213,161      2,068,008      1,998,007        201,298       190,327      190,161
Expected return on plan assets         2,905,775     (3,021,620)    (3,167,252)
Amortization of transition asset         (92,965)       (92,965)       (92,965)
Amortization of prior service cost       150,019        150,081        150,081
Recognized net actuarial gain            (35,944)      (110,733)
                                       ---------      ---------      ---------      ---------     ---------     --------
Net periodic cost (credit)             $   5,170      $ (97,713)     $(477,502)     $ 252,422     $ 249,328     $248,982
                                       =========      =========      =========      =========     =========     ========
</TABLE>


                                       43


<PAGE>   44
         The following table provides the amounts recognized in the statement of
         financial position as of December 31, 2000 and 1999:

<TABLE>
<CAPTION>
                                         PENSION BENEFITS                          OTHER BENEFITS
                                     2000                 1999                2000               1999
                                 -----------         -----------         ------------        ------------
<S>                              <C>                 <C>                 <C>                 <C>
Prepaid benefit cost             $ 3,354,790         $ 3,398,280         $         --        $         --
Accrued benefit liability           (464,111)           (417,741)          (2,784,075)         (3,104,981)
                                 -----------         -----------         ------------        ------------

Net amount recognized            $ 2,890,679         $ 2,980,539         $ (2,784,075)       $ (3,104,981)
                                 ===========         ===========         ============        ============
</TABLE>



         Ready Mix Concrete, one of the Company's subsidiaries, also sponsors a
         defined contribution profit sharing plan covering substantially all of
         its non-union employees. Company contributions consist of a match of
         employee pre-tax contributions, and a profit sharing contribution. The
         profit sharing contribution, if any, is allocated to all eligible
         employees based on salary and years of services. With respect to such
         plan, the Company expensed approximately $190,000, $192,000, and
         $155,000 during the years ended December 31, 2000, 1999 and 1998,
         respectively.


NOTE 12

The following table presents the required segment information:
<TABLE>
<CAPTION>

                                                 CEMENT OPERATIONS                          READY MIX OPERATIONS
(All amount in thousands)            2000             1999            1998           2000           1999         1998
                                   --------        --------        --------        -------        -------        -------
<S>                                <C>             <C>             <C>             <C>            <C>            <C>
Revenue from customers             $ 63,568        $ 70,660        $ 59,587        $90,380        $94,522        $77,369
Intersegment revenues                28,885          35,324          28,709             --             --             --
                                   --------        --------        --------        -------        -------        -------

                                     92,453         105,984          88,296         90,380         94,522         77,369
Depreciation, depletion and
    amortization                      9,688           8,918           8,685          4,797          4,558          4,241
Other operating expenses             71,867          81,436          68,029         84,706         87,663         70,625
                                   --------        --------        --------        -------        -------        -------

Operating profit                   $ 10,898        $ 15,630        $ 11,582        $   877        $ 2,301        $ 2,503
                                   --------        --------        --------        -------        -------        -------

Other charges, net
Income tax provision

Net income

Capital expenditures               $ 13,969        $  7,315        $ 10,295        $ 4,810        $12,418        $ 5,640
                                   --------        --------        --------        -------        -------        -------

Identifiable assets:
    Segment assets                 $241,482        $204,771        $212,919        $60,571        $61,723        $49,371
                                   --------        --------        --------        -------        -------        -------
    Corporate assets

Total assets
</TABLE>


                                       44
<PAGE>   45
         NOTE 12

         SEGMENT INFORMATION

         The Company operates in the cement and related products, paper and
         packaging industries, and in realty operations mainly within the island
         of Puerto Rico. Operations in the cement and related products industry
         involve production and sale of cement, ready mix concrete, and lime.
         Operations in the paper and packaging industry involve production and
         sale of paper and polypropylene bags. Realty operations involve the
         development, sale and lease of real property.

         The cement and ready mix concrete operations are the two reportable
         segments. The remaining operations have been combined in the "All
         Other" column in the table that follows.

         The accounting policies of the segments are the same as those described
         in Note 1.

         The Company's management evaluates the performance of its segments and
         allocates resources to them based on operating profit. Operating profit
         is total revenue less operating expenses. Interest income and expense,
         other income and expenses, and income tax expense are not deducted in
         computing operating profit.

<TABLE>
<CAPTION>


         ALL OTHER SEGMENTS                          INTERSEGMENT ELIMINATIONS                             TOTAL
  2000           1999         1998           2000            1999            1998           2000            1999            1998
--------      --------      --------      ---------       ---------       ---------      ---------       ---------      ----------
<S>           <C>           <C>           <C>             <C>             <C>            <C>             <C>            <C>
$  6,561      $  8,118      $ 11,421                                                     $ 160,509       $ 173,300      $  148,377
   4,884         4,818         3,946      $ (33,769)      $ (40,142)      $ (32,655)            --              --              --
--------      --------      --------                                                     ---------       ---------      ----------

  11,445        12,936        15,367                                                       160,509         173,300         148,377

     462           573           405                                                        14,947          14,049          13,331
   9,333        11,240        13,588        (33,763)        (40,141)        (32,660)       132,143         140,198         119,582
--------      --------      --------      ---------       ---------       ---------      ---------       ---------      ----------
$  1,650      $  1,123      $  1,374      $      (6)      $      (1)      $       5         13,419          19,053          15,464
--------      --------      --------      ---------       ---------       ---------

                                                                                             2,114           2,785           1,318
                                                                                             2,169           4,225           2,765
                                                                                         ---------       ---------      ----------
                                                                                         $   9,136       $  12,043      $   11,381
                                                                                         ---------       ---------      ----------

$     67      $    971      $  1,764                                                     $  18,846       $  20,704      $   17,699
--------      --------      --------                                                     ---------       ---------      ----------


$ 61,907      $ 50,877      $ 38,119      $(100,101)      $  62,122       $ (62,861)     $ 263,859       $ 255,249       $ 237,548
--------      --------      --------      ---------       ---------       ---------
                                                                                            46,676          49,340          61,222
                                                                                         ---------       ---------      ----------

                                                                                         $ 310,535       $ 304,589       $ 298,770
                                                                                         =========       =========      ==========
</TABLE>


                                       45
<PAGE>   46
NOTE 13

LEASE COMMITMENTS

The company and its subsidiaries lease certain facilities and equipment under
operating lease agreements. Rental expense under such agreements totaled
approximately $1,259,000 in 2000, $817,000 in 1999 and $928,000 in 1998.

At December 31, 2000, the approximate future minimum lease payments under
noncancellable operating leases were as follows:

-------------------------------------------------------------------------------
<TABLE>

             YEARS                                               AMOUNT
             -----                                             -----------

             <S>                                              <C>
             2001                                             $    932,820
             2002                                                  807,536
             2003                                                  751,477
             2004                                                  676,088
             2005                                                  368,968
             2006 and thereafter                                   717,250
                                                              ------------

                                                              $  4,254,139
                                                              ============
</TABLE>

NOTE 14

FAIR VALUE OF FINANCIAL INSTRUMENTS


The following methods and assumptions were used to estimate the fair value of
each class of financial instrument:

CASH AND CASH EQUIVALENTS

The carrying amount of these assets approximates fair value because of the short
period of time to maturity of the instruments.

INVESTMENTS

The fair values of investments are estimated based on their quoted market prices
or those of similar investments.

OTHER CURRENT FINANCIAL INSTRUMENTS

The carrying amount of notes and accounts receivable, notes payable, accounts
payable and other current liabilities approximate fair value due to their short
term to maturity.


--------------------------------------------------------------------------------


The carrying amount and estimated fair values of these financial instruments at
December 31, are as follows (in thousands):


<TABLE>
<CAPTION>
                                                        2000                          1999
                                              CARRYING        FAIR          CARRYING        FAIR
                                               AMOUNT         VALUE          AMOUNT         VALUE
                                              --------        -----         --------       -------
<S>                                           <C>            <C>            <C>            <C>
Cash and cash equivalents                     $ 1,141        $ 1,141        $ 1,631        $ 1,631
Short-term investments                         13,534         13,496          6,001          5,945
Notes and accounts receivable                  34,811         34,811         34,968         34,968
Long-term investments                          29,927         34,984         39,712         39,590
Long-term notes receivable                      8,169          8,972          6,225          6,036
Notes payable                                   5,940          5,940            654            654
Accounts payable and other liabilities         21,330         21,330         22,973         22,973
Long-term debt                                 83,933         81,008         85,171         79,912
</TABLE>


                                       46

<PAGE>   47
         LONG-TERM DEBT

         The fair value of the Company's long-term debt is estimated using
         discounted cash flow techniques based on the current rates offered to
         the Company for debt of the same remaining maturities.


         NOTE 15

         CONTINGENT LIABILITIES AND OTHER COMMITMENTS

         The Company is obligated to purchase, under a long-term supply
         contract, a minimum of 100,000 metric tons of coal annually through the
         year 2005. This contract was rescinded by the Company during December
         2000 under one of the contract clauses. Purchases under the contract
         amounted to $4,555,000 in 2000, $5,747,000 in 1999 and $6,884,000 in
         1998, and exceeded the minimum amount required by the contract.

         NOTE 16

         LEGAL PROCEEDINGS

         On May 10, 1999, the Company entered into a comprehensive settlement
         with Government of Puerto Rico and various other parties relating to
         disputes involving its Vega Alta and Guanica projects.

         Under the terms of the settlement agreement and related order, the
         Company was granted all Puerto Rico permits necessary to develop and
         operate its limestone quarry at Guanica, and develop the 300-unit real
         estate project at Vega Alta. Included were the permits necessary to
         remove aggregates from the Vega Alta site and process them at a new
         facility in Carolina.

         In its order, the Court ruled that the Company "has complied with all
         laws and regulations concerning the issuance of permits and
         authorizations" for the Guanica, Vega Alta and Carolina projects, and
         that all permits for the projects have been validly issued as a matter
         of law. As part of the settlement, the Company terminated its civil
         rights suit against the Governor of Puerto Rico and various other
         individual government officials.

         The settlement and order also resulted in the termination of all other
         pending agency and court actions relating to the Guanica and Vega Alta
         projects.

         The Company is a defendant in a number of legal proceedings arising in
         the normal course of business. Management believes, based on the advise
         of its legal counsel, that the outcome of these legal matters will not
         significantly affect the Company's financial position or results of
         operations.

         NOTE 17

         STOCKHOLDERS' EQUITY

         In 1999 and 1998 the Company purchased 192,800 shares and 73,000
         shares, respectively, of its outstanding stock for $6,411,377 and
         $3,530,330, respectively. The Company purchased these shares for future
         corporate purposes and does not intend to retire or cancel them. No
         shares of its outstanding stock were purchased during 2000.


                                       47
<PAGE>   48

CONSOLIDATED FOURTH QUARTER RESULTS (UNAUDITED)
(000's Omitted, Except Per Share Amounts)

<TABLE>
<CAPTION>
                                            -------------------------         ---------------------------
                                                 Three months ended                Twelve months ended
                                                    December 31                      December 31
                                            -------------------------         ---------------------------
                                              2000             1999             2000              1999
                                            --------         --------         ---------         ---------

<S>                                         <C>              <C>              <C>               <C>
Operating revenues                          $ 38,702         $ 37,112         $ 162,728         $ 173,300
Cost of sales                                 30,903           28,444           125,527           126,739
                                            --------         --------         ---------         ---------

Gross margin                                   7,799            8,668            37,201            46,561
Selling, general and
  administrative expenses                      5,913            7,029            23,657            27,508
                                            --------         --------         ---------         ---------

Income from operations                         1,886            1,639            13,544            19,053
                                            --------         --------         ---------         ---------


Other charges(credits):
  Interest and financial charges               1,689            1,743             6,442             6,160
  Interest income                               (924)            (964)           (3,866)           (3,656)
  Other expenses (income)                        (46)            (123)             (337)              281
                                            --------         --------         ---------         ---------

                                                 719              656             2,239             2,785
                                            --------         --------         ---------         ---------

Income before income taxes                     1,167              983            11,305            16,268
Tax provision                                    (60)            (222)            2,169             4,225
                                            --------         --------         ---------         ---------

Net income                                  $  1,227         $  1,205         $   9,136         $  12,043
                                            ========         ========         =========         =========

Earnings per share of common stock *        $   0.24         $   0.23         $    1.76         $    2.29
                                            ========         ========         =========         =========
</TABLE>

*        Based on weighted average of outstanding shares of 5,186,274 in 2000
         and 5,266,607 in 1999.


                                       48
<PAGE>   49
FINANCIAL RESULTS BY QUARTERS
(000's Omitted Except Per Share Amounts)

<TABLE>
<CAPTION>

                              --------------------------------------------------------------------------------------------------
THREE MONTHS ENDED              MAR. 31              JUN. 30              SEPT. 30                DEC. 31                 2000
                              --------------------------------------------------------------------------------------------------
<S>                           <C>                   <C>                   <C>                   <C>                     <C>
Operating revenues            $41,842               $42,228               $39,956               $ 38,702                $162,728
                              ==================================================================================================

Gross profit                    7,938                11,661                 9,803                  7,799                  37,201
                              ==================================================================================================

Income before income tax        1,243                 5,432                 3,463                  1,167                  11,305

Tax provision                      52                 1,287                   890                    (60)                  2,169
                              --------------------------------------------------------------------------------------------------
Net income                    $ 1,191               $ 4,145               $ 2,573               $  1,227                $  9,136
                              ==================================================================================================

Per share *                   $  0.23               $  0.80               $  0.49               $   0.24                $   1.76
                              ==================================================================================================

<CAPTION>

                              --------------------------------------------------------------------------------------------------
THREE MONTHS ENDED              MAR. 31              JUN. 30              SEPT. 30                DEC. 31                 2000
                              --------------------------------------------------------------------------------------------------
<S>                           <C>                   <C>                   <C>                   <C>                     <C>
Operating revenues            $44,664               $48,080               $43,444               $ 37,112                $173,300
                              ==================================================================================================

Gross profit                   13,189                14,678                10,026                  8,668                  46,561
                              ==================================================================================================

Income before income tax        5,742                 5,976                 3,567                    983                  16,268

Tax provision                   1,595                 1,844                 1,008                   (222)                  4,225
                              --------------------------------------------------------------------------------------------------

Net income                    $ 4,147               $ 4,132               $ 2,559               $  1,205                $ 12,043
                              ==================================================================================================

Per share *                   $  0.77               $  0.78               $  0.48               $   0.26                $   2.29
                              ==================================================================================================
</TABLE>

*        Based on weighted average of outstanding shares of 5,186,274 in 2000
         and 5,266,607 in 1999.


                                       49
<PAGE>   50
FIVE-YEAR STATISTICAL COMPARISON
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                              ------------------------------------------------------------------------------------
Years ended December 31,                           2000              1999              1998              1997              1996
                                              ------------------------------------------------------------------------------------
<S>                                           <C>               <C>               <C>               <C>               <C>
BALANCE SHEET SUMMARY

Cash and equivalents                          $  1,141,378      $  1,630,750      $  7,480,900      $  2,995,634      $ 14,808,709
Investments available-for-sale                          --                --                --         5,580,202         4,595,908
Short-term investments                          13,534,460         6,001,346        16,066,648         6,967,225         1,917,616
Accounts receivable-net                         34,811,499        34,968,168        28,799,150        28,763,683        27,410,312
Inventories                                     38,923,484        36,301,359        33,945,940        32,885,743        33,443,290
Prepaid expenses                                 7,289,793         5,579,699         5,087,218         4,533,070         4,624,691
                                              ------------------------------------------------------------------------------------

  CURRENT ASSETS-TOTAL                          95,700,614        84,481,322        91,379,856        81,725,557        86,800,526

Property, plant and equipment-net              173,045,701       168,650,305       162,278,187       158,610,632       143,088,242
Other assets                                    11,861,864        11,745,607         8,524,016         4,347,346         4,334,404
Long-term investments                           29,926,624        39,711,592        36,587,498        46,367,581        46,980,338
                                              ------------------------------------------------------------------------------------

                                              $310,534,803      $304,588,826      $298,769,557      $291,051,116      $281,203,510
                                              ====================================================================================

Notes payable (include current portion of
  long-term debt and short-term borrowing)    $ 11,187,567      $  4,459,871      $  3,003,422      $  1,778,505      $ 15,401,050
Accounts payable and accrued
  liabilities                                   21,329,737        22,973,240        19,525,110        17,145,619        15,080,253
                                              ------------------------------------------------------------------------------------

  CURRENT LIABILITIES - TOTAL                   32,517,304        27,433,111        22,528,532        18,924,124        30,481,303

Long-term debt (exclusive of
  current portion)                              78,685,546        81,365,209        80,541,666        76,179,792        67,023,200
Deferred income taxes                           29,456,239        30,787,824        32,358,532        35,859,657        33,323,351
Other Long-Term Liabilities                      2,784,075         3,104,981         3,082,449       3,SS023,228         2,954,610
Stockholder's Equity                           167,091,639       161,897,701       160,258,378       157,064,315       147,421,046
                                              ------------------------------------------------------------------------------------

                                              $310,534,803      $304,588,826      $298,769,557      $291,051,116      $281,203,510
                                              ====================================================================================
STATISTICAL DATA
Book value per share                          $      32.22      $      31.22      $      29.79      $      28.81      $      26.67
Shares outstanding at year-end                   5,186,274         5,186,274         5,379,074         5,452,074         5,527,074
Number of stockholders                                 508               543               568               597               622
Average number of employees                            990             1,053             1,008             1,015               969
Capital expenditures                          $ 18,845,785      $ 20,703,611      $ 17,699,254      $ 28,028,571      $ 11,662,959
                                              ====================================================================================
</TABLE>


                                       50
<PAGE>   51

DIRECTORS

================================================================================
<TABLE>

<S>                                                            <C>
ANTONIO LUIS FERRE                                             ROSARIO J. FERRE
Chairman of the Board of the Company and President of          Second Vice President of Luis A. Ferre Foundation, Inc.
El Dia, Inc. (Newspaper Publishing Group)
                                                               EMILIO J. VENEGAS
ALBERTO M. PARACCHINI                                          President of Sanson Corporation (Rock and Concrete
Vice Chairman of the Board of the Company and Director         Products) and Secretary of Venegas Construction
of Banco Popular de Puerto Rico (Commercial Bank)              Corporation (General Contractors)

                                                               FEDERICO F. SANCHEZ
HECTOR DEL VALLE                                               President of Federico F. Sanchez and Company and Interlink
Vice Chairman of the Board of the Company                      Group, Inc. (Real Estate Consultants, Brokers and Developers)

MIGUEL A. NAZARIO                                              JORGE L. FUENTES
President and Chief Executive Officer of the Company           Chairman of the Board and Chief Executive Officer of Gabriel
                                                               Fuentes, Jr. Construction Company, Inc. and Chairman of the Board
ANTONIO LUIS FERRE RANGEL                                      and Chief Executive Officer of Fuentes Concrete Pile, Inc. (Concrete
Senior Corporate Vice President of the Company                 Pile Foundations)

WALDEMAR DEL VALLE ARMSTRONG                                   JUAN A. ALBORS
Attorney-at Law, Partner of Parra, Del Valle & Limeres         President and General Partner of Albors Development Corp.
                                                               (Real Estate Developers and Investors)
JOSE J. SUAREZ
Consultant to the Company                                      LUIS ALBERTO FERRE RANGEL
                                                               Director, El Dia, Inc, (Newspaper Publishing Group)
ANGEL TORRES
President of Bacardi Corporation

OSCAR A. BLASINI
President of G.B. Investments, Inc.
(Real Estate Development and Investments)
</TABLE>


                                       51
<PAGE>   52

OFFICERS

================================================================================

MIGUEL A. NAZARIO
President and Chief Executive Officer

ANTONIO LUIS FERRE RANGEL
Senior Corporate Vice President

JOSE O. TORRES
Assistant Secretary, Vice President of Finance
and Chief Financial Officer

EUFEMIO TOUCET
Executive Vice President Ready Mix Concrete, Inc.

JUAN R. TARAZA
Vice President - Sales

PEDRO A. PAGAN
General Manager
St. Regis Paper and Bag Division

PEDRO M. MENA
Treasurer

FERNANDO L. VARGAS
Controller

ETIENNE TOTTI DEL VALLE
Secretary


                                       52
<PAGE>   53


Puerto Rican Cement Company, Inc.
STOCKHOLDERS INFORMATION


--------------------------------------------------------------------------------
STATUTORY OFFICES
Ponce, Puerto Rico

EXECUTIVE OFFICES
Guaynabo, Puerto Rico

SUBSIDIARIES*
Florida Lime Corporation
Ready Mix Concrete, Inc.
Poly Bags & Packaging, Inc.
Desarrollos Multiples Insulares, Inc.
Limestone Materials, Inc.
Ponce Capital Corporation
Ponce Equipment & Maintenance Corp.
* All Subsidiaries are 100% owned

REGISTRAR AND TRANSFER AGENT
ChaseMellon Shareholder Services
New York, New York

INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers, LLP
San Juan, Puerto Rico

PUBLIC RELATIONS
Public Relations Office
Puerto Rican Cement Co., Inc.
San Juan, Puerto Rico

LEGAL COUNSEL
Totti & Rodriguez Diaz
San Juan, Puerto Rico

FORM 10-K

A copy of the Annual Report as filed with the Securities and Exchange Commission
on Form 10-K will be mailed upon request made to Mr. Jose O. Torres, Vice
President of Finance and Chief Financial Officer, Puerto Rican Cement Company,
Inc., PO Box 364487, San Juan, Puerto Rico 00936-4487.

PUERTO RICAN CEMENT COMPANY, INC.
ANNUAL MEETING

The Annual Meeting of Stockholders of Puerto Rican Cement Company, Inc. will be
held at the office of the Company in Amelia Industrial Park, Guaynabo, Puerto
Rico, on Wednesday, May 2, 2001 at 10:00 a.m.

COMMON SHARE PRICES
AND DIVIDEND PER SHARE

The Company's common stock is listed on the New York Stock Exchange (trading
symbol: PRN). The following table sets forth the high and low sales price per
share of the common stock.

<TABLE>
<CAPTION>
                                    2000                         1999
                            ---------------------       -----------------------
Price per share ($)          High           Low           High           Low
                            ---------------------       -----------------------

<S>                         <C>            <C>          <C>            <C>
First Quarter               34 5/8         27 7/8         36 1/4         30 3/8
Second Quarter              32             27 5/8        34 9/16         30 1/2
Third Quarter               31             27 5/8        38            32 13/16
Fourth Quarter              34 3/8         29 1/2        37 9/16         33 1/2
Full Year                   34 5/8         27 5/8        38              30 3/8
                            ---------------------       -----------------------
Dividends per share               $   0.76                      $   0.76
</TABLE>


                                       53