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STRONG MARKET SHARE GAINS FOR GRUPO DINA

 MEXICO CITY, July 21 /PRNewswire/ -- Consorcio G Grupo Dina, S.A. de C.V. (NYSE: DIN), today reported earnings for the second quarter and first half ended June 30, 1993.
 Consolidated net sales for the second quarter of 1993 increased to NPs. 697.9 million from the NPs. 631 million reported during the same period in 1992. Operating income for the quarter increased to NPs. 81.7 million from NPs. 70.4 million reported during the same period in 1992. Majority net income for the second quarter of 1993 climbed to NPs. 79.2 million from the NPs. 71.4 million reported during the comparable period in 1992.
 Consolidated net sales for the first half of 1993 were NPs. 1,473 million, a 34 percent increase over the NPs. 1,099 million reported during the same period of 1992. Operating income was NPs. 211 million during the first half of 1993, a 66 percent increase over that reported during the same period in 1992. Majority net income for the first six months of 1993 were NPs. 172 million, a 42 percent increase from that reported during the same period in 1992.
 For the six months ended June 30, 1993, cost of sales was 75.7 percent, a decrease of 4.9 percentage points from that reported in 1992. This was due to a return to normal operating conditions in the bus plant and to a reclassification of commissions paid to dealers on direct factory sales. This reclassification represented NPs. 29 million and is now included in selling, general and administrative expenses.
 For the six months ended June 30, 1993, selling, general and administrative expenses were 10 percent of consolidated net sales, compared with 7.8 percent during the same period in 1992. The reclassification described in the foregoing paragraph represents 2 percentage points of this increase. Additionally, certain non-recurring charges were taken including costs associated with the Dinastia materials planning/software project, layoffs associated with the new productivity-based labor contract in the truck division, productivity bonuses, and launching expenses for the new Viaggio intercity bus model.
 Truck Division
 The truck division sold 6,211 units during the first half of 1993, 3.8 percent less than the same period in 1992. Despite this decrease, however, market share in the first half of 1993 increased to 40 percent from 37.1 percent recorded during the same period of 1992.
 On an industry-wide basis, the Mexican truck market (combined classes 6, 7 and 8), declined 9.6 percent during the first half of 1993, compared with the same period in 1992, as a result of a prevailing economic slowdown in Mexico. The markets for urban transit and fleet sales have maintained their normal level of activity. Dina expects a rebound in demand toward the end of 1993.
 In May 1993, the labor union represented in the truck division signed a productivity contract which includes the following changes:
 -- Predetermined production quotas have been eliminated. Continuing improvement in production levels can now be contractually achieved.
 -- Promotions are based on the training, ability and personal performance of each worker, as opposed to seniority.
 -- The total of 93 job levels and 12 wage levels has been reduced to 21 job levels and four wage levels.
 -- Union workers can now increase their wages by up to 25 percent, based on individual appraisals, by learning additional skills and improving quality standards.
 This agreement will allow the company to reduce the man-hours necessary to assemble a truck. The cost of this contract, in terms of severance payments associated with layoffs, is approximately NPs. 10 million, to be amortized over six months beginning June 1993.
 Bus Division
 During the second quarter of 1993, the new DINA-VIAGGIO intercity bus was launched, in both a two- and three-axle version. Modifications were completed in the bus plant to install new tooling for both the new bus model, as well as to increase total production capacity from 2,240 to 3,520 units per year. For the six months ended June 30, 1993, cumulative capital expenditures relating to the DINA-VIAGGIO were NPs. 21 million. NPs. 4 million in operating expenses associated with the new bus model was charged to results.
 The Mexican market or intercity buses grew 39 percent in the first six months of 1993, compared with the same period in 1992, and most of this increase represents incremental sales by the bus division. The division sold 967 units during the first half of 1993 compared with 409 during the same period of 1992, giving it a cumulative market share of 45 percent in 1993, compared with 26 percent during the same period of 1992.
 Capital Markets
 On March 31, 1993, shares of Consorcio G Grupo Dina began to trade simultaneously on the Mexico City Bolsa de Valores (BMV under the symbol DINA), and in the form of ADSs on the New York Stock Exchange (NYSE under the symbol DIN). The initial public offering was closed on April 6, 1993, with proceeds from the primary offering of NPs. 420 million. The issue has strengthened the company's financial position, lowering leverage to approximately 0.91 currently.
 Dividends
 On May 6, 1993, the board of directors of Consorcio G Grupo Dina, S.A. de C.V. authorized the submission of a recommendation at the next annual stockholders' meeting for the payment of a proposed dividend in respect to the company's 1992 earnings. The amount of the proposed dividend is NPs. 0.18 per share (equivalent to NPs. 0.72 per ADS), to be paid in the second half of 1993. The declaration of this dividend must be approved by the stockholders at the annual meeting.
 Consorcio G Grupo Dina S.A. de C.V. is the leading supplier of medium and heavy duty trucks in Mexico in the combined Class 6, 7 and 8 truck market. The company is the only domestic manufacturer of European-style intercity buses in Mexico and the leading supplier of intercity buses typically used in the executive and first-class service segments of the Mexican intercity bus market. The company also manufactures and distributes replacement parts for trucks and buses and plastic components for the truck, bus and other industries.
 CONSORCIO G GRUPO DINA, S.A. DE C.V. AND SUBSIDIARIES
 Consolidated Condensed Statements of Income


(Expressed in terms of the purchasing power of the New Mexican peso as
 of June 30, 1993)
 (unaudited, amounts in thousands, except per share data)
 Three months ended June 30, 1992 1993 1993
 N Ps N Ps US $
 Net sales (A) 631,030 697,912 223,833
 Cost of goods sold 512,148 527,934 169,318
 Gross profit 118,882 169,978 54,515
 Operating expenses 48,506 88,229 28,297
 Operating income 70,376 81,749 26,218
 Comprehensive financing income
 Interest expense (income) (4,418) (6,802) (2,182)
 Exchange (gain) loss 6,433 4,619 1,148
 Gain on net monetary position (10,070) (4,606) (1,477)
 Total (8,055) (6,789) (2,177)
 Other income (expense), net 3,518 2,603 835
 Income before the following
 provisions and extra-
 ordinary credit 81,949 91,141 29,231
 Provisions for:
 Income tax 6,300 10,300 3,303
 Asset tax (537) 4,976 1,596
 Employees' profit sharing 1,454 2,647 849
 Tax benefit arising from
 timing differences 941 0 0
 Total 8,158 17,923 5,748
 Income before extra-
 ordinary credit 73,791 73,218 23,482
 Extraordinary credit:
 Utilization of tax loss
 carryforwards 3,840 8,840 2,835
 Net income 77,631 82,058 26,318
 Net income applicable to:
 Majority interest 71,415 79,167 25,390
 Minority interest 6,216 2,891 927
 Net income 77,631 82,058 26,318
 Income per share:
 Income before extra-
 ordinary credit .46 .36 .12
 Extraordinary credit .02 .04 .01
 Minority interest (.04) (.01) .00
 Majority net income per share (B) .44 .39 .12
 Majority Net income per ADS (C) --- 1.55 .50
 Weighted average shares
 outstanding (000's) 8,079,964 203,800,450 203,800,450
 Consolidated Condensed Statements of Income
 (Expressed in terms of the purchasing power
 of the New Mexican Peso as of June 30, 1993)
 (unaudited, amounts in thousands, except per share data)
 Six months ended June 30, 1992 1993 1993
 N Ps N Ps US $
 Net sales (A) 1,098,868 1,473,422 472,554
 Cost of goods sold 886,068 1,114,826 357,545
 Gross Profit 212,800 358,596 115,009
 Operating expenses 85,402 147,228 47,219
 Operating income 127,398 211,368 67,790
 Comprehensive financing income
 Interest expense (income) (4,644) 2,241 719
 Exchange (gain) loss 5,482 9,136 2,930
 Gain on net monetary position (24,142) (20,801) (6,671)
 Total 23,303 9,424 3,022
 Other income (expense), net 4,979 5,142 1,649
 Income before the following
 provisions and extra-
 ordinary credit 155,680 225,934 72,461
 Provisions for:
 Income tax 18,459 38,838 12,456
 Asset tax 2,600 10,091 3,236
 Employees' profit sharing 6,127 16,955 5,438
 Tax benefit arising from
 timing differences 4,513 0 0
 Total 31,698 65,884 21,130
 Income before extra-
 ordinary credit 123,981 160,050 51,331
 Extraordinary credit:
 Utilization of tax loss
 carryforwards 5,751 18,000 5,773
 Net Income 129,732 178,050 57,104
 Net income applicable to:
 Majority interest 121,007 172,213 55,232
 Minority interest 8,725 5,837 1,872
 Net income 129,732 178,050 57,104
 Income per share:
 Income before extra-
 ordinary credit .77 .79 .25
 Extraordinary credit .04 .09 .03
 Minority interest (.05) (.03) (.01)
 Majority net income per share (B) .75 .85 .27
 Majority net income per ADS (C) --- 3.38 1.08
 Weighted average shares
 outstanding (000's) 8,079,964 203,800,450 203,800,450
 (A) In 1992, discounts relating to cash sales payments have been reclassified to be consistent with 1993 reporting.
 (B) Net income per share for 1992 periods has been recalculated, taking into account the following events:
 --On April 27, 1992, the company reduced its authorized capital stock to 8,079,964, all of which were issued and outstanding.
 --On Oct. 9, 1992, the company effected a 20 for 1 split of its shares, based on original shares outstanding of 8,079,964.
 (C) The ADS were first issued on April 6, 1993. One ADS equals 4 shares.
 -0- 7/21/93
 /CONTACT: Cynthia Pelini or Luis Vinicio Anduaga of Grupo Dina, 011-525-325-0927, or Cathleen Mayrose of Dewe Rogerson, 212-688-6840, for Grupo Dina/
 (DIN)


CO: Consorcio G Grupo Dina, S.A. de C.V. ST: IN: AUT SU: ERN

CG-LG -- NY019 -- 3857 07/21/93 10:33 EDT
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Date:Jul 21, 1993
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