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EMPRESAS ICA REPORTS FOURTH QUARTER/YEAR-END EARNINGS

 MEXICO CITY, March 9 /PRNewswire/ -- Empresas ICA Sociedad Controladora, S.A. de C.V. (NYSE: ICA), Mexico's largest construction company, today reported results for the fourth quarter and year ended Dec. 31, 1992.
 Net sales for the fourth quarter ended Dec. 31, 1992, increased to 1,451 million new pesos from 1,275 million new pesos reported during the comparable period in 1991. This increase in sales during the fourth quarter of 1992, was due mainly to the high volume of work performed on line 8 of the Mexico City subway system, as well as an increase in urban infrastructure projects.
 Operating income for the fourth quarter increased to 349 million new pesos from 262 million new pesos reported during the comparable period of 1991. This increase, caused by a sharp rise in gross income due primarily to land sales by the Urban and Housing division, occurred notwithstanding the inclusion in operating expenses of a severance payment allowance of 25.9 million new pesos. Through 1991, these provisions for severance payments were charged to expenses in the period in which they were made. Additionally, operating expenses were higher in the fourth quarter of 1992 when compared to the 1991 period due to a change in the procedure by which the company pays performance-based bonuses to management. Unlike performance-based bonuses paid in 1991 and in prior years, which were in the form of stock awards and not treated as an expense, bonuses in 1992 and future years will be paid in cash and will be treated as an expense.
 Integral cost of financing in the fourth quarter of 1992 showed a gain of 51 million new pesos, compared to a gain of 24 million new pesos in the fourth quarter of 1991. This improvement was due principally to higher interest income from the increased cash balances resulting from the company's initial public offering in April 1992.
 Other expense in the fourth quarter of 1992 is principally due to the reclassification of items previously recorded as other income. The reclassification had the effect of increasing operating income by 39 million new pesos and increasing the gain reported under integral cost of financing by 31 million new pesos.
 The loss from unconsolidated affiliates resulted mainly from a loss in the operating sections of the Cuernavaca-Acapulco toll road.
 Net income during the fourth quarter decreased to 179 million, or 1.72 new pesos per share, compared with 283 million, or 3.86 new pesos per share, reported during the comparable period in 1991. This decrease was caused mainly by higher taxes and losses incurred by unconsolidated affiliated companies. The decrease in the 1992 per-share figure is a result of an increase in the number of shares outstanding following the company's initial public offering in April 1992. Shares outstanding were 103.75 million and 73.33 million during the fourth quarters of 1992 and 1991, respectively.
 Net sales for the year ended Dec. 31, 1992, were 5,593 million new pesos, a 19 percent increase when compared with the 4,715 million reported in 1991. Net income in 1992 increased to 502 million new pesos, or 4.84 new pesos per share, compared with 382 million new pesos, or 5.21 new pesos per share, reported during the comparable period in 1991.
 During 1992, the company renegotiated the Plan de Barrancas concession with the Mexican government. The amended concession obtained in December, now referred to as the Guadalajara-Tepic concession, will expand the original concession from 22.3 kilometers to 194 kilometers and extend its original term from 8.5 years to 20 years. In order to provide a portion of the financing for the amended concession, the Mexican government has indicated that it will grant to the company the concession to an existing 26 kilometer toll road. As a result of this negotiation, the government has recognized the additional work performed by the company beyond the project's original specifications.
 Backlog as of December 1992 is 5,661 million new pesos, a 58 percent increase above the 3,590 million new peso balance in December 1991. Among the most important new contracts are the Guadalajara-Tepic toll road and the Tuxpan Thermoelectric complex, units 5 & 6. Additionally, the company was awarded the Samalayuca thermoelectric plant, although the contract was not signed until January 1993. Therefore, the value of this contract is not included in the 1992 backlog figure.
 During the fourth quarter, ICA Industrial, S.A. de C.V. signed a letter of intent with Fluor Daniel, a unit of Fluor Corporation, one of the world's leading engineering and industrial construction companies, for the purpose of forming an alliance to enhance ICA's participation in the Mexican industrial construction market.
 Additionally, the company reduced its ownership interest in the Leon-Lagos-Aguascalientes and Mazatlan-Culiacan concessions below 50 percent through transfers of interest to other construction companies that had participated in the construction of those concessional highways. As a result of these transfers, the company will cease to report these concession interests on a consolidated basis, thereby reducing its investment in the concessions and the related debt and equity for balance sheet purposes. The transfers had no material effect on results of operations.
 Empresas ICA Sociedad Controladora, S.A. de C.V. is engaged in a full range of construction and related activities. ICA constructs infrastructural facilities, as well as industrial, urban and housing construction for both the Mexican public and private sectors. ICA constructs, maintains and operates highways, bridges and tunnels under concessions granted by the Mexican government. In addition, ICA manufactures and markets autoparts, owns and operates hotels and mines and markets construction aggregates.
 EMPRESAS ICA SOCIEDAD CONTROLADORA, S.A. DE C.V.
 Consolidated Income Statement
 (Millions of December 1992 new pesos)
 Fourth Quarter 1992 Percent 1991 Percent
 Net sales 1,451 100 1,275 100
 Cost of sales 949 65 901 71
 Gross income 502 35 374 29
 Operating expenses 153 11 112 9
 Operating income 349 24 262 21
 Integral cost of financing (51) (4) (24) (2)
 Income after ICF 400 28 286 22
 Other expenses (income) 66 5 (52) (4)
 Income before taxes & employee
 profit sharing (PTU) 334 23 338 27
 Income tax and PTU 117 8 63 5
 Net income after taxes and PTU 217 15 275 22
 Share in net income (loss) of
 unconsolidated affiliates (35) (2) 2 --
 Net consolidated income 182 13 277 22
 Net income (loss) of minority
 interest 3 -- (6) --
 Net income of majority interest 179 12 283 22
 December 1992 Percent 1991 Percent
 Net sales 5,593 100 4,715 100
 Cost of sales 4,247 76 3,636 77
 Gross income 1,346 24 1,079 23
 Operating expenses 600 11 462 10
 Operating income 746 13 617 13
 Integral cost of financing (40) (1) 92 2
 Income after ICF 786 14 525 11
 Other expenses (income) (38) (1) (48) (1)
 Income before taxes & employee
 profit sharing (PTU) 824 15 573 12
 Income tax and PTU 284 5 220 5
 Net income after taxes and PTU 540 10 353 7
 Share in net income (loss) of
 unconsolidated affiliates (35) (1) 4 --
 Net consolidated income 505 9 357 8
 Net income (loss) of minority
 interest 3 -- (25) (1)
 Net income of majority interest 502 9 382 8
 -0- 3/9/93
 /CONTACT: Javier Mora of ICA, 011-525-272-9991, or Cathleen Mayrose of Dewe Rogerson, 212-688-6840, for ICA/
 (ICA)


CO: Empresas ICA Sociedad Controladora S.A. de C.V. ST: IN: CST SU: ERN

CK-PS -- NY027 -- 4470 03/09/93 11:02 EST
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Date:Mar 9, 1993
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