Vitro Reports Fourth Quarter and Fiscal 2001 Results.Business Editors GARZA
American musician who gained fame as the cofounder and lead guitarist of the folk-rock group the Grateful Dead (1965-1995). , N.L., Mexico--(BUSINESS WIRE)--Feb. 25, 2002 Vitro, S.A. de C.V. (NYSE NYSE See: New York Stock Exchange : VTO VTO Vocational Training Order (Australia) VTO Vertical Take Off VTO Voluntary Time Off VTO Virtual Travel Organizer VTO Volusia Teachers Organization VTO Voice Treatment Option VTO Varactor Tuned Oscillator ; BMV BMV Bolsa Mexicana de Valores BMV Bureau of Motor Vehicles BMV Bundesministerium für Verkehr (German: Federal Ministry of Transport) BMV Below Market Value BMV Brome Mosaic Virus BMV Bedside Medication Verification : VitroA) - 57% of debt was long-term. - Average life of debt was 2.7 years. - 50% of debt maturing in the period January '02 - December '02, or approximately US$334 million, is related to trade finance, which the Company regularly renews. - Current maturities of long-term debt include a maturity of US$175 million on May '02 of a bond placed in the international capital markets. - Rate composition of Company's debt: fixed rate = 53%; floating rate and fixed spread = 25%; short-term debt subject to market conditions = 22% All figures provided in this communication are in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. . All figures are presented in constant Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum pesos as of December December: see month. 31, 2001. Dollar figures are in nominal Trifling, token, or slight; not real or substantial; in name only. Nominal capital, for example, refers to extremely small or negligible funds, the use of which in a particular business is incidental. NOMINAL. Relating to a name. US dollars and are obtained by dividing nominal pesos for each month by the applicable exchange rate as of the end of that month. This communication contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Vitro, S.A. de C.V. and its Subsidiaries that are based on the beliefs of its management as well as assumptions made by and information currently available to the Company. Such statements reflect the current views of Vitro with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results or performance of Vitro to be materially different from any future results or performance that may be expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements, including, among others, changes in general economic, political, governmental and business conditions globally and in the countries in which Vitro does business. Should one or more of these risks or uncertainties materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , or should underlying assumptions prove incorrect Incorrect means to not be correct and may also refer to:
Vitro, S.A. de C.V. (NYSE: VTO and BMV: VITROA), through its subsidiary companies, is a major participant Participant A party of a funding. It usually refers to the lowest rank or smallest level of funding. in four distinct businesses: flat glass, glass containers, household products and glassware. Vitro's subsidiaries serve multiple product markets, including construction and automotive glass, wine, liquor liquor /li·quor/ (lik´er) (li´kwor) pl. liquors, liquo´res [L.] 1. a liquid, especially an aqueous solution containing a medicinal substance. 2. , cosmetics cosmetics, preparations externally applied to change or enhance the beauty of skin, hair, nails, lips, and eyes. The use of body paint for ornamental and religious purposes has been common among primitive peoples from prehistoric times (see body-marking). , pharmaceutical, food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. glass containers, household appliances, fiberglass fiberglass, thread made from glass. It is made by forcing molten glass through a kind of sieve, thereby spinning it into threads. Fiberglass is strong, durable, and impervious to many caustics and to extreme temperatures. , plastic and aluminum containers, and glassware for commercial, industrial and consumer uses. Founded in 1909, Monterrey Monterrey (mōntārā`), city (1990 pop. 1,068,996), capital of Nuevo León state, NE Mexico, the third largest city of Mexico. Located c.150 mi (240 km) S of Laredo, Tex. , Mexico-based Vitro has joint ventures with 10 major world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. manufacturers that provide its subsidiaries with access to international markets, distribution channels and state-of-the-art technology. Vitro's subsidiaries do business throughout the Americas A·mer·i·cas , the See America. , with facilities and distribution centers in seven countries, and export products to more than 70 countries. Grupo Vitro's website can be found at: http://www.vto.com
Fourth quarter and fiscal 2001 results
Conference Call and Web cast
Tuesday, February 26, 2002
12:00 PM US CT (Monterrey time); 1:00 PM US ET
A live web cast of the conference call will be available to investors and the media at http://www.vto.com/ through Tuesday Tuesday: see week. , March 26, 2002. For inquiries regarding the web cast, please contact Dario Da·rí·o , Rubén 1867-1916. Nicaraguan poet who is considered the father of modern Spanish poetry. His works include Cantos de Vida y Esperanza (1905). Wolos of CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network via telephone at (617) 801-7739, or via email at dwolos@ccbn.com For further information, please contact:
(Investor Relations) (U.S. agency)
Beatriz Martinez Luca Biondolillo / Susan Borinelli
Vitro S.A. de C.V. Breakstone & Ruth International
011 (52) 8863-1258 (646) 536-7012 / 7018
bemartinez@vto.com Lbiondolillo@breakstoneruth.com
Sborinelli@breakstoneruth.com
(Media Relations)
Albert Chico
Vitro, S. A. de C.V.
011 (52) 8863-1335
achico@vto.com
DETAILED FINANCIAL INFORMATION FOLLOWS:
Consolidated Results
Sales The positive YoY sales performance in U.S. dollar terms for the year and the fourth quarter was mainly driven by the businesses of Flat Glass, Glass Containers and Acros Whirlpool whirlpool, revolving current in an ocean, river, or lake. It may be caused by the configuration of the shore, irregularities in the bottom of the body of water, the meeting of opposing currents or tides, or the action of the wind upon the water. . Similarly to last quarter, sales in peso terms at the Flat Glass business unit remained practically flat YoY, overcoming the pressure that a strong peso puts on prices, increased imports and the decline in demand caused by the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. of the U.S. economy and its impact over the Mexican economy. Flat Glass was able to increase sales in dollar terms, among other things as a result of the consolidation of Cristalglass, its European-based subsidiary. Glass Containers showed an increase resulting for the most part from the domestic market, with additional sales especially to beer producers and a general increase in sales of niche niche: see ecology. niche Smallest unit of a habitat that is occupied by an organism. A habitat niche is the physical space occupied by the organism; an ecological niche is the role the organism plays in the community of organisms found in the products with a better sales mix sales mix See product mix. . At Acros Whirlpool, volume increases in the export markets and added sales of recently launched products, were the main drivers for the growth in sales, partially offsetting price pressures. For Glassware, sales for the quarter decreased YoY, as result of a decline in demand in the retail, institutional and industrial sectors, as a result of the slowdown of the U.S. and Mexican economies. As was announced during IIIQ'01, to improve synergies and further reduce costs, the Diverse Industries unit was integrated into the remaining units; various parts of Diverse Industries are in the process of being sold and the remaining companies will be operated as part of the remaining units. Fiber Glass, which sells to both the construction and auto segment, is now managed by the Flat Glass business unit, the plastic business, that has distribution channels similar to those of Glassware, is now managed under such unit. The remaining businesses are currently reporting to the Glass Containers unit either because of vertical integration or market similarities. EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become EBITDA has remained strong, and was above US$500 million for the fifth consecutive year, notwithstanding adverse market conditions EBITDA for the year was US$513 million. Despite various internal measures and efforts undertaken to offset adverse circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , YoY EBIT and EBITDA declined mainly as a consequence of favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. imports resulting from a strong peso, pricing measures that the Company agreed to absorb absorb To offset sell orders or a new security offering with buy orders. to strengthen market participation in certain businesses, vis-a-vis the slowdown in demand aggravated ag·gra·vate tr.v. ag·gra·vat·ed, ag·gra·vat·ing, ag·gra·vates 1. To make worse or more troublesome. 2. To rouse to exasperation or anger; provoke. See Synonyms at annoy. during the IIIQ'01 in the U.S. economy, and impacting the Mexican economy as well. The strength of the peso, which has appreciated YoY by 4.6% for the year plus an annual inflation of 4.4%, continued to affect the competitiveness of the Mexican industry. Also, lower production levels, as a result of a decline in demand, resulted in a lower fixed cost absorption absorption [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance. . Additionally, during the quarter the Company incurred certain labor expenses that were paid in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of to workers, mainly in connection with the realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of certain businesses, and that, on the other hand, improved the tax planning Tax planning Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer. , therefore resulting in net free cash flow generation, plus improved services to customers and lower administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . These additional expenses amounted to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. US$10 million for the year. Total Financing Cost Interest expense for the quarter decreased due to a lower weighted average cost of debt, which declined to 8.6% from 10.2% for IVQ'00 as a result primarily of lower market rates, a decrease in the aggregate amount of debt and the Company's liability management strategies. Additionally, the Company has locked-in fixed rates for certain of its floating rate liabilities, through various interest rate cap transactions that amount to US$350 million and that should aid to lower the Company's financing cost in the future. The weighted average cost of debt for fiscal 2000 was 10.3%, while for 2001 it was 9.1%. Currently, debt accruing interest at fixed rates represents 53% of total debt of the Company. Due to the 3.6% appreciation of the peso during IVQ'01, the Company recorded a non-cash exchange gain for the period. Overall, the Company recorded, a total financing gain for the quarter of Ps$171 mill. (US$18 mill.), compared with a total financing cost of Ps$414 mill. (US$41 mill.) for the fourth quarter of last year, when a devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the peso produced a non-cash foreign exchange loss. Taxes The Company has made an effort to improve its tax position, taking different measures to pay taxes more efficiently. As a result of that, taxes plus profit sharing to workers (PSW (Program Status Word) A hardware register that maintains the status of the program being executed. ) for the year declined due to the reorganizations that took place at the end of 2000 and in the last quarter of 2001, within the Glass Containers, Flat Glass and Glassware business units, to improve service to customers and reduce administrative costs. Another factor that contributed to lower taxes & PSW was a reduction in the EBIT base YoY. For the quarter taxes increased YoY due to the recognition of deferred taxes in some of our foreign subsidiaries, and PSW went down as a result of the above-mentioned A`bove´-men`tioned a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. reorganizations. Net Income Net income for the quarter was Ps$354 mill. (US$38 mill.), compared with Ps$51 mill. (US$6 mill.) during IVQ'00 mainly as a result of a considerable, non-cash, exchange gain. Net majority income for the quarter was Ps$217 mill. (US$23mill.), compared with a net loss of majority interest for IVQ'00 of Ps$70 mill. (US$6 mill.). The Other Income (expense) item for the quarter, included severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when payments made in connection with an ongoing reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. program and non-cash losses in connection with the sale of certain assets and the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. assets. Capital Expenditures In the aggregate, CAPEX for fiscal 2001 was US$100 mill., US$10 mill. less than the aggregate amount of CAPEX for 2000. CAPEX for the year was mainly used for maintenance purposes. CAPEX for the year was between 15% and 20% lower than the originally budgeted US$ 120-130 million as a means to optimize optimize - optimisation the utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of the Company's cash flow generation. Financial Position The US$38 million QoQ debt reduction was achieved through various internal savings and using, solely, internally generated funds. The Company met all the maturities of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. euro commercial paper that came between the months of September September: see month. and January January: see month. , which was not renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. . As of this date, the Company has no commercial paper outstanding. The US$58 million debt reduction for the year, along with lower interest rates, coupled with the improvement in the Company's liability management strategies, resulted in interest. coverage of 3.3 times. Financial leverage (Total Debt/EBITDA) stood at 2.97 times, slightly higher than year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2000 of 288 times, but that reflects a lower EBITDA. It's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have worth noting that the debt reduction was achieved notwithstanding the acquisition of Cristalglass and severance payments made in connection with our ongoing corporate reorganization of US$34 million. Debt Profile as of December 31st, 2001 - 57% of debt was long-term. - Average life of debt was 2.7 years. - 50% of debt maturing in the period January '02 - December '02, or approximately US$334 million, is related to trade finance, which the Company regularly renews. - Current maturities of long-term debt include a maturity of US$175 million on May '02 of a bond placed in the international capital markets. - Rate composition of Company's debt: fixed rate = 53%; floating rate and fixed spread = 25%; short-term debt subject to market conditions = 22% Cash Flow Year over year, lower CAPEX and better working capital management, along with lower taxes and dividends paid, resulted in an improvement of net free cash flow generation that offset a lower YoY EBITDA for the quarter. Net free cash flow generated during the quarter was used mainly for debt reduction, severance payments as part of the ongoing corporate reorganization, the settlement of the final equity SWAP Equity swap A swap in which the cash flows exchanged are based on the total return on some stock market index and an interest rate (either a fixed rate or floating rate). Related: Interest rate swap. transaction that the Company had contracted and a US$33 million increase QoQ in the Balance Sheet's Cash and Cash Equivalent line. As a percentage of sales, working capital investments for IVQ'01 were reduced to 8.92% from 12.6% for IVQ'00. Flat Glass (36% of Sales) Sales Sales of the business unit during the quarter increased 5.9% in dollar terms and remained flat in peso terms as a significant percentage of the business' revenues are denominated in U.S. dollars. On the domestic front the business remained relatively stable, despite pricing pressures from Asian imports, the slowdown of the auto segment and lower sales of fiberglass due to the maintenance given to one of its furnaces. At the same time, some volume previously consumed con·sume v. con·sumed, con·sum·ing, con·sumes v.tr. 1. To take in as food; eat or drink up. See Synonyms at eat. 2. a. internally for the auto segment was shifted to the export market, favoring favoring an animal is said to be favoring a leg when it avoids putting all of its weight on the limb. A part of being lame in a limb. sales in that sector although impacting the sales mix. Foreign subsidiaries increased sales YoY by 11.3% mainly driven by Cristalglass. YoY, volumes for the quarter were flat for both construction and auto segments, although for the year volumes declined by 2.9%, basically due to the slowdown of the auto segment. In 2001, OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and represented 15% of the unit's sales and 6% of the Company's sales. Fiberglass volumes were down by 8.5% due mainly to the above-mentioned shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down of one of its furnaces to finish major maintenance work and as a result increase capacity. Results of the Flat Glass business for the quarter and the full year include the segment of Fiber Glass, formerly managed within Diverse Industries. In 2001, Fiber Glass represented approximately 5% of the aggregate business unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. for both the quarter and the year, and 6% for 2000. EBIT and EBITDA Mainly a strong peso that promoted imports and reduced income in peso terms, affected EBIT and EBITDA margins on a YoY basis for the quarter. Also, market conditions have resulted in reduced demand, which has continued to increase price pressures for the Company. On the foreign subsidiaries front, there are still efforts that are being made to bring the former Harding Glass business into the operations efficiency levels of VVP VVP Vladimir Vladimirovich Putin (president of Russia) VVP Verification and Validation Plan VVP Virtual Volunteering Project VVP Venen-Verschluß-Plethysmographie VVP Valovoj Vnutrennij Produkt America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. . Efforts have been made to reduce costs, such as a personnel reduction of 3% in the last quarter. Operating efficiencies have been improved, which has allowed the company to partially compensate for the market slowdown of this last quarter. Further efforts are being made to increase efficiencies and improve the product mix. The unit went at the end of 2000 into a series of reorganizations that benefited the cash flow generation by a better tax planning and at the same time improving sales service toward clients, however, due to such event, during the quarter some labor expenses were incurred in lieu of payment of PSW that also impacted EBIT and EBITDA. The recently integrated fiberglass segment represented approximately 13% of EBIT and 11% of EBITDA for the year. Glass Containers (32% of Sales) Sales Total YoY sales of the Glass Containers business unit increased by 8.7% in dollar terms. The beer, soft drink, wine and cosmetic cosmetic /cos·met·ic/ (koz-met´ik) 1. pertaining to cosmesis. 2. a beautifying substance or preparation. cos·met·ic n. segments contributed to most of the improvement. Also, focusing in more profitable niche segments paired with more effective marketing to the end consumer has yielded better sales. The export market remained practically flat. Sales from foreign subsidiaries increased as a result of the global strategy of the unit to help cover unattended demand in the south of Mexico and north of Central America Central America, narrow, southernmost region (c.202,200 sq mi/523,698 sq km) of North America, linked to South America at Colombia. It separates the Caribbean from the Pacific. , due to lack of capacity at the Mexican plants. Alcali (raw materials), showed a YoY increase in sales as a result of better market conditions for the products that it produces and distributes. The rest of the non-glass segments were affected by the slowdown of the U.S. and Mexican economy. Results of the Glass Containers business unit for the quarter and the full year included the results of the ampoules, capital goods Capital Goods Any goods used by an organization to produce other goods. Notes: Examples of capital goods include office buildings, equipment, and machinery. See also: Capital Expenditure, Disinvestment Capital goods , raw materials and aluminum can segments, formerly managed by Diverse Industries. In 2001, these segments represented 2001 20.3% of net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight , compared with 22.3% for the previous year. For the quarter, the non-glass segments decreased YoY by 10.9%. EBIT and EBITDA The glass segment showed an improvement QoQ of around 110 basis points in its EBITDA margins due to cost efficiency measures and a better sales mix. On an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis, the recently integrated non-glass units represented approximately 14% of EBIT and 16% of EBITDA for the year, compared with 16% of EBIT and 17% of EBITDA for 2000. With the exception of Alcali (raw materials), the rest of the non-glass segments were negatively affected by the strong peso and pressures on prices due to a condition of over-supply for the aluminum can segment and favorable imports that have affected the ampoules segment. Glass Containers underwent at the end of 2000 several reorganizations that benefited the cash flow generation, leaded to a better tax planning and improved service to clients. At the same time, the above-mentioned reorganizations resulted in some extra labor expenses, in lieu of payment of profit sharing to workers, which affected margins during the quarter. Glassware (9% of Vitro's Sales) Sales The decrease in consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net sales on a YoY basis continued to be attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the decline in demand, both in the U.S. and Mexican economies, for both glass and plastic products. The decline in sales is also attributable to an increase in import products, especially from European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. and Asian competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , as a result of a strong peso and the continued decline in import tariffs An import tariff or import duty is a schedule of duties imposed by a country on imported goods. It is paid at a border or port of entry to the relevant government to allow a good to pass into that government's territory. , which affected revenues in the domestic market. In the export market, sales continued to decline as a result of a slowdown in demand for the hotel, restaurant service, and industrial products (coffee carafes, blenders, etc.). Volumes for IVQ'01 showed an increase of 10% over IIIQ'01, but decreased YoY by 13%. Plastic volumes showed an increase over IIIQ'01 of 5.4%, but decreased YoY by 8.7%. The recently integrated, for management purposes, plastic segment, formerly part of Diverse Industries, represented approximately 21% of Glassware sales for both the quarter and the year 2001. For 2000, it represented 19% of the unit's sales. Glassware's management is focusing on improving returns by renewing re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. and maintaining a constant commitment to improve its line of offered products, improving the sales mix toward niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. and focusing more on the distribution front. EBIT and EBITDA YoY, IVQ'01 results decreased by 44.0% mainly as a result of lower sales and thus lower fixed cost absorption. The less attractive sales mix due to the decline in demand in the most profitable segments and exports at prices that may not be met in industrialized in·dus·tri·al·ize v. in·dus·tri·al·ized, in·dus·tri·al·iz·ing, in·dus·tri·al·iz·es v.tr. 1. To develop industry in (a country or society, for example). 2. economies also affected both EBIT and EBITDA margins. Management continues its strategy of maintaining low inventories, in an effort to increase cash flow generation, improving product innovation and client service, and focusing on distribution efforts. Reorganizations made to increase cash flow resulted in some extra labor expenses for the period paid in lieu of PSW, which affected the EBIT and EBITDA generation. The recently integrated plastics segment represented approximately 18% of EBIT and 16.5% of EBITDA for IVQ'01, and 15% for both EBIT and EBITDA for the year. Acros Whirlpool (23% of Sales) Sales During the quarter, demand from the export market for products of this business unit increased in unit terms more that 31%, despite the U.S. economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. . The new range platform contributed to most of the increase, followed by the refrigerator segment, since Acros Whirlpool's export models represent a more affordable option for the U.S. consumers. This trend helped offset flat sales shown in the domestic market, which are being affected by low-price imports benefited by the strong peso and a general slowdown in the appliances sector. For the year, volumes increased by 8%, due mainly to the introduction of the new range platform and the certain models within the refrigerator segment. EBIT and EBITDA Profitability continued to be affected mainly by pricing pressures, mostly from Korean Korean, language of uncertain ancestry. It is thought by some scholars to be akin to Japanese, by others to be a member of the Altaic subfamily of the Ural-Altaic family of languages (see Uralic and Altaic languages), and by still others to be unrelated to any known imports into the domestic market. The increased participation of dollar denominated sales via exports, helped offset the pressures shown on the domestic front. Management of Acros Whirlpool is focusing on improving the product mix to improve margins, such as refrigerators over nine feet in size, the consolidation of the new range platform, which is likely to result in operating efficiencies, the new refrigerator line to be produced, and a new import model in the washer washer Orthopedics A flattened disk of metal with a central hole used to distribute stress under a screw head to prevent thin cortical bone from splitting; serrated washers are used to affix avulsed ligaments, small avulsion fractures or comminuted fractures to the segment. Recent Key Developments DEBT REFINANCING Refinancing An extension and/or increase in amount of existing debt. The Company's internal resources, existing credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities coupled with additional facilities being completed, a capital-markets raising exercise in the Mexican domestic market, and proceeds from divestitures, are expected to be used as means to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. the Company's Yankee Bond Yankee Bond A bond denominated in U.S. dollars and issued in the United States by foreign banks and corporations. Notes: This type of a bond is known as a foreign bond. that matures in May of 2002. DEBT REDUCTION Debt was reduced by approximately US$58 million for the year to US$1,576 million, notwithstanding significant expenditures resulting from a corporate reorganization (US$34 million) and the acquisition of Cristalglass. Also, efforts have been made to reduce holding company debt. This reflects the Company's desire to improve its financial ratios towards investment grade levels. ACROS WHIRLPOOL The Company announced today that it has reached an agreement in principle with Whirlpool Corporation Whirlpool Corporation (NYSE: WHR) is the world's leading manufacturer and marketer of major home appliances,with annual sales of approximately $18 billion, more than 73,000 employees, and more than 70 manufacturing and technology research centers around the world. , to sell its 51% controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in Acros Whirlpool. The transaction was approved by Whirlpool's and Vitro's boards last week, and still requires approval by the competent Possessing the necessary reasoning abilities or legal qualifications; qualified; capable; sufficient. A court is competent if it has been given jurisdiction, by statute or constitution, to hear particular types of lawsuits. authorities and Vitro's shareholders. The transaction, which is expected to be completed during the second quarter of this year, is consistent with Vitro's efforts to concentrate in its core businesses. DIVESTITURE The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). PLAN UPDATE The Company has been negotiating agreements that are near completion, for the sale of two businesses. One transaction should result in the Company receiving applicable proceeds in the near future. A second transaction is currently being negotiated, but requires government approvals that may slowdown completion. Other divestitures are not currently being pursued as aggressively awaiting for better market conditions. Although there can be no assurance that such sales will be completed, Vitro remains committed to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. non-strategic assets. JOIN VENTURE WITH AFG AFG Afghanistan (international vehicle registration) AFG American Financial Group AFG Assistance to Firefighters Grant AFG Arbeitsförderungsgesetz (German: Labor Advancement Law) AFG Accreditation for Growth INDUSTRIES The Company has continued the negotiations of the relevant agreements with AFG to convert a glass containers facility in Mexicali Mexicali (māhēkä`lē), city (1990 pop. 438,377), capital of Baja California state, NW Mexico, across the border from Calexico, Calif. into a flat glass production facility. The agreements are expected to be completed shortly and construction is expected to be commenced during the second half of this year.
VITRO, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2001 (IN MILLIONS)
Fourth Quarter
INCOME STATEMENT Constant Pesos Nominal Dollars(1)
-----------------
2001 2000 % Var. 2001 2000 % Var.
---- ---- ------- ---- ---- ------
Consolidated Net
Sales 7,193 7,227 (0.5) 783 734 6.7
Cost of Sales 5,424 5,197 4.4 592 528 12.0
------------------ -------------------
Gross Income 1,769 2,030 (12.9) 192 206 (7.1)
SG&A Expenses 1,292 1,234 4.7 140 127 10.8
------------------ -------------------
Operating Income 477 796 (40.1) 52 80 (35.5)
-- --
Interest Expense 481 508 (5.3) 52 51 2.6
Interest Income 9 15 (43.4) 1 2 (38.7)
Exchange Loss (Gain) (512) 279 -- (55) 27 --
Gain from Monet. Position 132 359 (63.2) 14 36 (60.3)
------------------ -----------------
Total Financing Cost (171) 414 -- (18) 41 --
Other Income (62) (220) (71.9) (7) (22) (69.4)
Share in Net Income
of Non-Consol. Assoc.
Companies (1) (1) 3.3 (0) (0) 12.7
------------------ -----------------
Inc. bef. Tax & PSW 584 161 262.9 63 17 269.3
Income Tax and PSW 230 110 110.1 25 11 121.2
------------------ -----------------
Net Inc. Cont. Opns. 354 51 588.8 38 6 554.4
Income (loss)of
Discont. Oper. - - -- - - --
Extraordinary Items,
Net - - -- - - --
------------------ -----------------
Net Income 354 51 588.8 38 6 554.4
------------------ -----------------
Net Income of Maj. Int. 217 (70) -- 23 (6) --
Net Income of Min. Int. 137 121 12.8 15 12 20.2
January - December
INCOME STATEMENT Constant Pesos Nominal Dollars(1)
-----------------
2001 2000 % Var. 2001 2000 % Var.
---- ---- ------- ---- ---- ------
Consolidated Net Sales 28,190 28,631 (1.5) 3,002 2,857 5.1
Cost of Sales 20,638 20,307 1.6 2,199 2,027 8.5
-------------- -------------------
Gross Income 7,553 8,324 (9.3) 803 829 (3.2)
SG&A Expenses 4,950 4,807 3.0 528 484 9.1
-------------- -------------------
Operating Income 2,603 3,517 (26.0) 275 345 (20.4)
Interest Expense 1,907 2,219 (14.1) 201 217 (7.6)
Interest Income 40 47 (15.1) 4 5 (9.2)
Exchange Loss (Gain) (564) 339 -- (61) 30 --
Gain from Monet.
Position 651 1,315 (50.5) 68 128 (46.8)
-------------- -------------------
Total Financing Cost 651 1,196 (45.6) 67 114 (41.5)
Other Income (866) (488) 77.5 (92) (48) 90.4
Share in Net Income of
Non-Consol. Assoc.
Companies 7 5 54.7 1 0 72.2
-------------- -------------------
Inc. bef. Tax & PSW 1,094 1,838 (40.5) 117 183 (36.0)
Income Tax and PSW 516 1,001 (48.4) 55 99 (44.4)
-------------- -------------------
Net Inc. Cont. Opns. 578 837 (31.0) 62 84 (26.2)
Income (loss)of Discont.
oper. - - -- - - --
Extraordinary Items, Net - - -- - - --
-------------- -------------------
Net Income 578 837 (31.0) 62 84 (26.2)
-------------- -------------------
Net Income of Maj. Int. 135 347 (61.0) 15 36 (57.3)
Net Income of Min. Int. 442 490 (9.7) 47 48 (3.2)
---------------------------------------------------------------------
% %
BALANCE SHEET 2001 2000 Var. 2001(2) 2000(2) Var.
-------------- ---- ---- ----- ------- ------- ----
Cash & Cash Equivalents 1,005 787 27.6 110 80 37.2
Trade Receivables 2,238 2,342 (4.4) 244 237 2.8
Inventories 3,589 3,781 (5.1) 391 385 1.6
Other Current Assets 1,021 1,248 (18.2) 111 127 (12.1)
------------------ -----------------
Total Current Assets 7,854 8,158 (3.7) 856 829 3.3
Inv. in Uncons. Subs. 43 196 (77.8) 5 19 (75.7)
Prop., Plant & Equipment 21,044 22,691 (7.3) 2,295 2,275 0.9
Deferred Assets 1,831 1,627 12.6 200 165 21.4
Other Long-Term Assets 575 504 14.1 63 51 23.1
------------------ -----------------
Total Assets 31,347 33,175 (5.5) 3,419 3,339 2.4
Short-Term & Curr.
Debt 6,162 4,314 42.8 672 433 55.3
Trade Payables 3,311 2,537 30.5 361 255 41.8
Other Current
Liabilities 1,683 2,042 (17.6) 184 208 (11.6)
------------------ -----------------
Total Curr. Liab. 11,156 8,892 25.4 1,217 895 35.9
Long-Term Debt 8,291 12,019 (31.0) 904 1,201 (24.7)
Other LT Liabilities 3,034 2,821 7.5 331 281 17.6
------------------ -----------------
Total Liabilities 22,481 23,733 5.3 2,452 2,377 3.1
Restated Capital Stock 6,758 6,708 0.8 737 669 10.2
Retained Earnings (1,224) (475) 158.0 (134) (34) 289.9
Minority Interest 3,333 3,209 3.9 363 327 11.1
------------------ -----------------
Total Shar. Equity 8,867 9,442 (6.1) 967 961 0.6
(1) Nominal dollars calculated by dividing each month's nominal pesos
by the end of such month exchange rate.
(2) Constant pesos at the end of each period converted into dollars
using the exchange rate at the end of each respective period.
FINANCIAL INDICATORS IVQ'01 IVQ'00
-------------------------- ------ ------
Debt/EBITDA (LTM, times) 3.0 2.9
EBITDA/Net Int. Exp. (LTM, times) 3.3 3.2
Debt/Firm Value (times) 0.6 0.6
Debt/Equity (times) 1.6 1.7
Total Liab./Stockh. Equity (times) 2.5 2.5
Curr. Assets/Curr. Liab. (times) 0.7 0.9
Sales/Assets (times) 1.2 1.2
EPS (Ps$) (a) 0.79 (0.26)
EPADR (US$) (a) 0.26 (0.08)
(a) Based on the weighted
average shares outstanding.
OTHER DATA
# Shares Issued (thousands) 324,000 324,000
# Average Shares Outstanding
(thousands) 275,088 269,897
Employees 33,378 33,815
VITRO, S.A. DE C.V. AND SUBSIDIARIES
SEGMENTED INFORMATION
AS OF DECEMBER 31, 2001 (IN MILLIONS)
Fourth Quarter
Constant Pesos Nominal Dollars(1)
2001 2000 % 2001 2000 %
--------------------------------------------------
FLAT GLASS
Net Sales 2,610 2,597 0.5% 283 267 6.0%
Interd. Sales 23 20 11.6% 2 2 21.0%
Con. N. Sales 2,587 2,577 0.4% 281 265 5.9%
Expts.
(US$)(1) 65 63 3.7% 65 63 3.7%
EBIT 219 341 -35.9% 24 34 -30.8%
Margin (2) 8.5% 13.2% 8.4% 12.9%
EBITDA 370 474 -21.9% 40 48 -15.7%
Margin (2) 14.3% 18.4% 14.3% 17.9%
--------------------------------------------------
--------------------------------------------------
GLASS CONTAINERS
Net Sales 2,268 2,236 1.4% 246 228 7.8%
Interd. Sales 9 27 -67.6% 1 3 -65.0%
Con. N. Sales 2,259 2,209 2.3% 245 225 8.7%
Expts.
(US$) (1) 55 54 2.2% 55 54 2.2%
EBIT 165 223 -26.1% 18 22 -20.6%
Margin (2) 7.3% 10.1% 7.3% 9.9%
EBITDA 419 465 -10.0% 45 47 -3.2%
Margin (2) 18.5% 21.1% 18.5% 20.8%
--------------------------------------------------
--------------------------------------------------
ACROS WHIRLPOOL
Net Sales 1,667 1,630 2.2% 180 162 10.9%
Interd. Sales (0) 0 -- - 0 --
Con. N. Sales 1,667 1,630 2.3% 180 162 10.9%
Expts.
(US$) (1) 58 42 37.1% 58 42 37.1%
EBIT 113 194 -41.9% 12 19 -37.1%
Margin (2) 6.8% 11.9% 6.8% 11.9%
EBITDA 185 258 -28.5% 20 26 -22.6%
Margin (2) 11.1% 15.8% 11.1% 15.8%
--------------------------------------------------
--------------------------------------------------
GLASSWARE
Net Sales 666 808 -17.6% 72 81 -11.4%
Interd. Sales 8 11 -23.8% 1 1 -17.2%
Con. N. Sales 658 797 -17.5% 71 80 -11.3%
Expts.
(US$) (1) 18 22 -17.2% 18 22 -17.2%
EBIT 74 131 -44.0% 8 13 -39.9%
Margin (2) 11.2% 16.5% 11.2% 16.5%
EBITDA 135 198 -31.8% 15 20 -26.5%
Margin (2) 20.5% 24.8% 20.5% 24.8%
--------------------------------------------------
--------------------------------------------------
CONSOLIDATED (3)
Net Sales 7,233 7,285 -0.7% 788 740 6.4%
Interd. Sales 40 58 -31.9% 4 6 -26.1%
Con. N. Sales 7,193 7,227 -0.5% 783 734 6.7%
Expts.
(US$) (1) 196 180 8.5% 196 180 8.5%
EBIT 477 796 -40.1% 52 80 -35.5%
Margin (2) 6.6% 11.0% 6.6% 10.9%
EBITDA 1,084 1,329 -18.4% 117 133 -12.0%
Margin (2) 15.1% 18.4% 15.0% 18.1%
--------------------------------------------------
January - December
Constant Pesos Nominal Dollars(1)
2001 2000 % 2001 2000 %
----------------------------------------------------
FLAT GLASS
Net Sales 10,610 10,535 0.7% 1,134 1,064 6.5%
Interd. Sales 89 96 -7.1% 9 9 0.6%
Con. N.
Sales 10,522 10,439 0.8% 1,125 1,055 6.6%
Expts.
(US$) (1) 260 274 -5.1% 260 274 -5.1%
EBIT 1,243 1,663 -25.2% 131 163 -19.7%
Margin (2) 11.8% 15.9% 11.7% 15.5%
EBITDA 1,842 2,254 -18.3% 194 221 -12.1%
Margin (2) 17.5% 21.6% 17.3% 21.0%
----------------------------------------------------
----------------------------------------------------
GLASS CONTAINERS
Net Sales 9,149 9,406 -2.7% 974 941 3.5%
Interd. Sales 61 49 24.0% 6 5 32.3%
Con. N. Sales 9,088 9,356 -2.9% 967 936 3.4%
Expts.
(US$) (1) 249 245 1.5% 249 245 1.5%
EBIT 831 1,092 -23.9% 88 107 -17.7%
Margin (2) 9.1% 11.7% 9.1% 11.4%
EBITDA 1,843 2,065 -10.8% 195 203 -3.9%
Margin (2) 20.3% 22.1% 20.1% 21.7%
----------------------------------------------------
----------------------------------------------------
ACROS WHIRLPOOL
Net Sales 5,960 5,784 3.0% 629 564 11.4%
Interd. Sales 0 0 -83.0% 0 0 -80.0%
Con. N. Sales 5,960 5,784 3.1% 629 564 11.4%
Expts.
(US$) (1) 212 168 26.0% 212 168 26.0%
EBIT 467 615 -24.0% 49 60 -18.2%
Margin (2) 7.8% 10.6% 7.8% 10.6%
EBITDA 719 881 -18.4% 76 86 -12.1%
Margin (2) 12.1% 15.2% 12.0% 15.2%
----------------------------------------------------
----------------------------------------------------
GLASSWARE
Net Sales 2,585 2,968 -12.9% 274 293 -6.7%
Interd. Sales 39 40 -4.8% 4 4 2.8%
Con. N. Sales 2,547 2,927 -13.0% 270 289 -6.8%
Expts.
(US$) (1) 80 89 -9.8% 80 89 -9.8%
EBIT 320 509 -37.2% 34 50 -32.5%
Margin (2) 12.6% 17.4% 12.6% 17.4%
EBITDA 568 749 -24.3% 60 74 -18.6%
Margin (2) 22.3% 25.6% 22.3% 25.5%
----------------------------------------------------
----------------------------------------------------
CONSOLIDATED(3)
Net Sales 28,379 28,817 -1.5% 3,022 2,875 5.1%
Interd. Sales 188 186 1.5% 20 18 9.4%
Con. N.
Sales 28,190 28,631 -1.5% 3,002 2,857 5.1%
Expts.
(US$) (1) 801 776 3.2% 801 776 3.2%
EBIT 2,603 3,517 -26.0% 275 345 -20.4%
Margin (2) 9.2% 12.3% 9.2% 12.1%
EBITDA 4,861 5,678 -14.4% 513 558 -8.1%
Margin (2) 17.2% 19.8% 17.1% 19.5%
Business Units' Volume and Sales
Mix Information (Where Applicable)
Fourth Quarter January - December
2001 2000 % 2001 2000 %
------- ------ ---- -------- ------- -----
FLAT GLASS (MM Red. m2)
Constr. + Auto 33,494 33,446 0.1% 129,127 132,946 -2.9%
FIBER GLASS (Tons)
7,829.0 8,554.0 -8.5% 31,864 34,794 -8.4%
------- ------- ---- ------- ------- ----
GLASS CONTAINERS
(MM Pieces)
Domestic 936 839 11.6% 3,673 3,633 1.1%
Exports 254 269 -5.7% 1,109 1,200 -7.5%
Total: Dom.+Exp. 1,190 1,108 7.4% 4,782 4,833 -1.1%
ALCALI (TONS) 138,071 142,755 -3.3% 554,462 536,824 3.3%
ASA (MM Pieces) 145,472 181,745 -20.0% 650,015 684,665 -5.1%
VANCAN (MM Pieces)
228,985 267,311 -14.3% 909,393 1,056,846 -14.0%
------- ------- ----- ------- ------- -----
GLASSWARE (Sales Mix %)
Retail 58% 59% 61% 63%
Industrial 42% 41% 39% 37%
PLASTICS (Sales Mix %)
Retail 81% 83% 79% 81%
Industrial 19% 17% 21% 19%
---- ---- ---- ----
(1) Nominal dollars calculated by dividing each month's nominal pesos
by the end of such month exchange rate.
(2) EBIT and EBITDA Margins consider Consolidated Net Sales.
(3) Includes corporate companies and other's sales and EBIT.
Table I
Sales
( millions )
IVQ'01 IVQ'00 % Var. 12M'01 12M'00 % Var.
------ ------ ------ ------ ------ -----
Cons. Net Sales Ps$ 7,193 7,227 (0.5) 28,190 28,631 (1.5)
Cons. Net Sales US$ 783 734 6.7 3,002 2,857 5.1
Domestic Ps$ 3,911 4,139 (5.5) 14,968 15,734 (4.9)
Domestic US$ 426 413 3.1 1,582 1,538 2.9
Exports Ps$ 1,806 1,763 2.4 7,534 7,759 (2.9)
Exports US$ 196 180 8.5 801 776 3.2
Foreign Subs. Ps$ 1,476 1,325 11.4 5,689 5,138 10.7
Foreign Subs. US$ 161 141 14.2 619 543 14.0
% Dllr.
Sales(a)/Tot. Sales 46 44 4.1 47 46 2.4
% Exp.
Sales/Tot. Sales 25 25 1.8 27 27 (1.8)
----- ----- ---- ------ ------ -----
Table II
EBIT and EBITDA
( millions )
IVQ'01 IVQ'00 % Var. 12M'01 12M'00 % Var.
----- ------ ------ ------ ------ ------
EBIT Ps$ 477 796 (40.1) 2,603 3,517 (26.0)
EBIT Margin % 6.6% 11.0% 9.2% 12.3%
EBIT US$ 52 80 (35.5) 275 345 (20.4)
EBIT Margin % 6.6% 10.9% 9.2% 12.1%
EBTDA Ps$ 1,084 1,329 (18.4) 4,861 5,678 (14.4)
EBITDA Margin % 15.1% 18.4% 17.2% 19.8%
EBITDA US$ 117 133 (12.0) 513 558 (8.1)
EBITDA Margin % 15.0% 18.1% 17.1% 19.5%
----- ----- ----- ------ ------ -----
Table III
Total Financing Cost
( millions )
IVQ'01 IVQ'00 % Var. 12M'01 12M'00 % Var.
------ ------ ------ ------ ------ ------
Interest Expense Ps$ 329 375 (12.4) 1,460 1,792 (18.5)
Interest Expense US$ 35 38 (5.9) 153 175 (12.7)
Interest Income Ps$ 5 6 (13.8) 27 25 9.2
Interest Income US$ 0 1 (33.3) 3 2 8.7
Foreign
Exchange Loss (Gain)Ps$ (512) 279 - (564) 339 -
Foreign
Exchange Loss (Gain) US$ (55) 27 - (61) 30 -
Gains from
Monetary Position Ps$ 132 359 (63.2) 651 1,315 (50.5)
Gains from
Monetary Position US$ 14 36 (60.3) 68 128 (46.8)
Non Related Interest
Expenses(a) Ps$ 149 124 20.6 434 405 7.0
Non Related
Interest
Expenses (a) US$ 16 12 31.5 46 40 16.2
Total
Financing Cost Ps$ (171) 414 - 651 1,196 (45.6)
Total
Financing Cost US$ (18) 41 - 67 114 (41.5)
----- ----- ----- ----- ----- -----
(a) Net of non related interest products.
Table IV
Taxes & PSW
( millions )
IVQ'01 IVQ'00 % Var. 12M'01 12M'00 % Var.
------ ------ ------ ------ ------ -----
Income Tax Accrued Ps$ (48) 51 - 297 508 (41.5)
Income Tax Accrued US$ (5) 5 - 31 50 (38.5)
Income Tax Deferred Ps$ 250 (88) - 110 167 (34.0)
Income Tax Deferred US$ 27 (9) - 13 17 (24.2)
Total Income Tax Ps$ 202 (37) - 408 675 (39.6)
Total Income Tax US$ 22 (3) - 44 67 (35.0)
Profit Sharing
to Workers Ps$ 29 146 (80.4) 109 326 (66.6)
Profit Sharing
to Workers US$ 3 15 (78.8) 11 32 (64.2)
= Net
Taxes and PSW Ps$ 230 110 110.1 516 1,001 (48.4)
= Net
Taxes and PSW US$ 25 11 121.2 55 99 (44.4)
----- ----- ----- ------ ----- -----
Table VI
Cash Flow (a)
( millions )
IVQ'01 IVQ'00 % Var. 12M'01 12M'00 % Var.
------ ------ ------ ------ ------ -----
EBITDA Ps$ 1,084 1,329 (18.4) 4,861 5,678 (14.4)
EBITDA US$ 117 133 (12.0) 513 558 (8.1)
( - ) Net
interest expense(b) Ps$ 589 586 0.5 1,890 2,144 (11.8)
( - ) Net
interest expense(b) US$ 62 55 11.9 194 204 (5.2)
( - ) CAPEX Ps$ 266 436 (38.9) 943 1,110 (15.0)
( - ) CAPEX US$ 29 44 (34.1) 100 110 (9.1)
( +/- ) Working
capital inv. Ps$ (532) (136) 291.3 (762) (311)145.1
( +/- ) Working
capital inv. US$ (58) (14) 314.3 (85) (31)174.2
= Free Cash Flow Ps$ 761 443 71.7 2,789 2,736 2.0
= Free Cash Flow US$ 84 48 76.1 304 275 10.8
( - ) Taxes and
dividends paid Ps$ 52 255 (79.6) 836 1,519 (45.0)
( - ) Taxes and
dividends paid US$ 6 25 (76.0) 88 143 (38.5)
= Net Free
Cash Flow Ps$ 709 188 276.8 1,953 1,216 60.6
= Net Free
Cash Flow US$ 78 23 242.6 216 132 64.2
---- ---- ----- ----- ----- ----
(a) This statement is a Cash Flow statement and it does not
represent a Statement of Changes in Financial Position
according with the Mexican GAAP
(b) Includes some other financial expenses and products.
Table VII
Flat Glass
(millions)
IVQ'01 IVQ'00 % Var.
------ ------ ------
Cons. Net Sales Ps$ 2,587 2,577 0.4%
Cons. Net Sales US$ 281 265 5.9%
Domestic Sales Ps$ 841 899 -6.5%
Domestic Sales US$ 90 90 -0.3%
Exports Ps$ 600 628 -4.5%
Exports US$ 65 63 3.7%
Foreign Subs. Ps$ 1,169 1,071 9.2%
Foreign Subs. US$ 127 115 11.3%
EBIT Ps$ 219 341 -35.9%
EBIT Margin % 8.5% 13.2%
EBIT US$ 24 34 -30.8%
EBIT Margin % 8.4% 12.9%
EBITDA Ps$ 370 474 -21.9%
EBITDA Margin % 14.3% 18.4%
EBITDA US$ 40 48 -15.7%
EBITDA Margin % 14.3% 17.9%
----- ----- -----
Table VIII
Glass Containers
(millions)
IVQ'01 IVQ'00 % Var.
------ ------- -------
Cons. Net Sales Ps$ 2,259 2,209 2.3%
Cons. Net Sales US$ 245 225 8.7%
Domestic Sales Ps$ 1,447 1,473 -1.8%
Domestic Sales US$ 156 147 6.3%
Exports Ps$ 513 515 -0.4%
Exports US$ 55 54 2.2%
Foreign Subs. Ps$ 309 248 24.3%
Foreign Subs. US$ 34 27 26.8%
EBIT Ps$ 165 223 -26.1%
EBIT Margin % 7.3% 10.1%
EBIT US$ 18 22 -20.6%
EBIT Margin % 7.3% 9.9%
EBITDA Ps$ 419 465 -10.0%
EBITDA Margin % 18.5% 21.1%
EBITDA US$ 45 47 -3.2%
EBITDA Margin % 18.5% 20.8%
------ ------ -----
Table X
Household Products
(millions)
IVQ'01 IVQ'00 %Var.
------ ------ ------
Cons. Net Sales Ps$ 1,667 1,630 2.2%
Cons. Net Sales US$ 180 162 10.9%
Domestic Sales Ps$ 1,133 1,208 -6.2%
Domestic Sales US$ 122 120 1.7%
Export Sales Ps$ 534 422 26.5%
Export Sales US$ 58 42 37.1%
EBIT Ps$ 113 194 -41.9%
EBIT Margin % 6.8% 11.9%
EBIT US$ 12 19 -37.1%
EBIT Margin % 6.8% 11.9%
EBITDA Ps$ 185 258 -28.5%
EBITDA Margin % 11.1% 15.8%
EBITDA US$ 20 26 -22.6%
EBITDA Margin % 11.1% 15.8%
----- ------ -----
Table IX
Glassware
(millions)
IVQ'01 IVQ'00 %Var.
------ ------ ------
Cons. Net Sales Ps$ 658 797 -17.5%
Cons. Net Sales US$ 71 80 -11.3%
Domestic Sales Ps$ 502 600 -16.3%
Domestic Sales US$ 54 60 -9.2%
Export Sales Ps$ 164 208 -21.2%
Export Sales US$ 18 22 -17.2%
EBIT Ps$ 74 131 -44.0%
EBIT Margin % 11.2% 16.5%
EBIT US$ 8 13 -39.9%
EBIT Margin % 11.2% 16.5%
EBITDA Ps$ 135 198 -31.8%
EBITDA Margin % 20.5% 24.8%
EBITDA US$ 15 20 -26.5%
EBITDA Margin % 20.5% 24.8%
------ ------ -----
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