SAN PEDRO GARZA GARCIA, NUEVO LEON, Mexico, Feb. 24 /PRNewswire-/ -- Vitro S.A. de C.V. (BMV: VITROA; NYSE: VTO) one of the world's largest producers and distributors of glass products, today announced its 4Q'05 unaudited results. Year-over-year consolidated net sales rose 9.3 percent and EBITDA increased 13.1 percent. EBITDA margins of 16.1 percent for the quarter reflect an increase of 0.5 percentage points. EBITDA rose 14.6 percent at Glass Containers and fell 21.5 percent at Flat Glass.
FINANCIAL HIGHLIGHTS*
4Q'05 4Q'04 % Change
Consolidated Net Sales 565 516 9.3%
Flat Glass 294 269 9.3%
Glass Containers 261 229 4.3%
Cost of Sales 402 374 7.5%
Gross Income 163 143 14.2%
Gross Margins 28.9% 27.6% 1.3pp
SG&A 121 118 2.2%
SG&A % of sales 21.4% 22.9% -1.5pp
EBIT 42 24 72.4%
EBIT Margins 7.4% 4.7% 2.7pp
EBITDA 91 80 13.1%
Flat Glass 30 38 -21.5%
Glass Containers 55 48 14.6%
EBITDA Margins 16.1% 15.6% 0.5pp
Net Income 18 3 --
Net Income Margins 3.1% 0.7% +246bps
Total Debt 1,383 1,443 -4.1%
Short Term Debt 310 287 8.2%
Long Term Debt 1,073 1,156 -7.2%
Average life of debt 3.9 3.8
Cash & Cash Equivalents 165 272 -39.2%
* Million US$ Nominal
Alvaro Rodriguez, Chief Financial Officer, commented: "I want to highlight that 2005 was a very good year for Vitro, especially in light of the difficult year in terms of energy prices. In addition, for the second consecutive year we have met or exceeded our consolidated EBITDA targets. At Vitro we are delivering on our commitments."
"Talking about the year," he said, "I am pleased to report that Glass Containers put in an excellent performance, with a record year in terms of sales and EBITDA. This performance is a reflection of Vitro's strength and capacity to adapt to challenging times. It is also a reflection of our world class management team."
"In Flat Glass, we continue to face a challenging environment and are becoming smarter about managing the recent market changes. The quarter-over- quarter business unit performance, the extraordinary results in OEMs, and the good outcome in our foreign operations are a reflection of this."
"Cost reduction initiatives remain a top priority at Vitro. In fact, this quarter, SG&A as a percentage of sales fell by 1.5 percent year-over-year. This is particularly important given the pressure from high natural gas prices which continues to impact glass companies worldwide."
"We are moving ahead with our strategic plan aimed at unlocking the value at Vitro. As part of this plan, during this quarter we reduced gross debt at the Holding Company by US$26 million to US$583 million from US$609 million in 3Q05, and by US$144 million compared with 4Q'04. We are fully focused on reaching our objective of further reducing Holding Company debt. In addition, we've made progress in our strategy to divest certain assets as we continue negotiations for the sale of Crisa. In this report we are considering Crisa as a discontinued operation according to GAAP as we are optimistic for the positive conclusion of this process. In real estate, we sold a parcel of land for US$18 million and expect to close the sale of ancillary land for an additional US$22 million."
Dec-04 Dec-05
Inflation in Mexico
Quarter 1.8% 1.6%
Accumulated 5.2% 3.3%
Inflation in USA
Quarter 0.8% 0.6%
Accumulated 3.4% 3.5%
Exchange Rate
Closing 11.1495 10.6344
Devaluation
Quarter -2.1% -1.4%
Accumulated -0.8% -4.6%
All figures provided in this announcement are in accordance with Generally Accepted Accounting Principles in Mexico, except otherwise indicated. Dollar figures are in nominal US dollars and are obtained by dividing nominal pesos for month by the end of month fix exchange rate published by Banco de Mexico. In the case of the Balance Sheet, US dollar translations are made at the fix exchange rate as of the end of the period. Certain amounts may not sum due to rounding. All figures and comparisons are in USD terms, unless otherwise stated, and may differ from the peso amounts due to the difference between inflation and exchange rates.
This announcement contains historical information, certain management's expectations and other forward-looking information regarding Vitro, S.A. de C.V. and its Subsidiaries (collectively the "Company"). While the Company believes that these management's expectations and forward looking statements are based on reasonable assumptions, all such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated in this report. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic, political, governmental and business conditions worldwide and in such markets in which the Company does business, changes in interest rates, changes in inflation rates, changes in exchange rates, the growth or reduction of the markets and segments where the Company sells its products, changes in raw material prices, changes in energy prices, particularly gas, changes in the business strategy, and other factors. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. The Company does not assume any obligation, to and will not update these forward-looking statements. The assumptions, risks and uncertainties relating to the forward- looking statements in this report include those described in the Company's annual report in form 20-F file with the U.S. Securities and Exchange Commission, and in the Company's other filings with the Mexican Comision Nacional Bancaria y de Valores.
Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its subsidiary companies, is one of the world's leading glass producers. Vitro is a major participant in three principal businesses: flat glass, glass containers and glassware. Its subsidiaries serve multiple product markets, including construction and automotive glass; food and beverage, wine, liquor, cosmetics and pharmaceutical glass containers; glassware for commercial, industrial and retail uses. Vitro also produces raw materials and equipment and capital goods for industrial use, which are vertically integrated in the Glass Containers business unit. Founded in 1909 in Monterrey, Mexico-based Vitro has joint ventures with major world-class partners and industry leaders that provide its subsidiaries with access to international markets, distribution channels and state-of-the-art technology. Vitro's subsidiaries have facilities and distribution centers in eight countries, located in North, Central and South America, and Europe, and export to more than 70 countries worldwide. For further information, please visit our website at: http://www.vitro.com/
Fourth Quarter 2005 results
Conference Call and Web cast
Monday, February 27, 2006
11:00 AM U.S. EST - 10:00 A.M. U.S. CST (Monterrey time)
A live web cast of the conference call will be available to investors and the media at http://www.vitro.com/ through the end of the day on March 21, 2006. For inquiries regarding the conference call, please contact Michael Fehle of Breakstone Group via telephone at (646) 452-2337, or via email at
Consolidated Results
4Q05 Highlights
US$ Million
SALES EBITDA TOTAL DEBT
4Q05 4Q04 YoY 4Q05 4Q04 YoY 4Q05 4Q04 YoY
$ $ Change $ $ Change $ $ Change
% % % % %
FLAT GLASS 52 294 269 9.3 33 30 38 -21.5 402 368 9.0
CONTAINERS 46 261 229 14.3 60 55 48 14.6 495 493 0.4
HOLDING(1,2) 2 9 19 -50.4 7 6 -6 -207.4 487 582 -16.3
TOTAL 100 565 516 9.3 100 91 80 13.1 1383 1443 -4.1
INTER DEBT WITH THIRD CASH & CASH
COMPANY PARTIES EQUIVALENTS(3)
DEBT
4Q05 4Q04 4Q05 4Q04 YoY 4Q05 4Q04 YoY
$ $ $ $ Change $ $ Change
% %
FLAT GLASS 155 82 247 286 -13.8 51 38 33.7
CONTAINERS -58 63 553 430 28.7 90 33 172.8
HOLDING(1,2) -97 -145 583 727 -19.8 24 201 -87.8
TOTAL 1383 1443 -4.1 165 272 -39.2
(1) Sales for the Holding Co. represent only third party revenues.
(2) Holding includes all corporate companies
(3) Cash & Cash Equivalents include cash collateralizing long term debt
accounted for in other long term assets.
Sales
Consolidated net sales for 4Q'05 increased 9.3 percent YoY to US$565 million and 6.6 percent to US$2,212 for fiscal year 2005. Flat Glass and Glass Containers sales for the quarter rose 9.3 percent and 14.3 percent YoY respectively.
During the quarter domestic, export, and foreign subsidiaries' sales YoY grew 9.4 percent, 14.9 percent, and 5.2 percent respectively.
The US dollar amounts of the peso-denominated operations are higher when compared to the peso figures, owing to a revaluation of the Mexican peso against the US dollar.
Table 1: Total Sales
Table 1
Sales
(Million)
YoY% YoY%
4Q'05 4Q'04 Change 2005 2004 Change
Constant Pesos
Total Consolidated Sales 6,026 5,846 3.1 24,150 24,018 0.5
Flat Glass 3,132 3,002 4.3 12,274 12,548 (2.2)
Glass Containers 2,793 2,624 6.5 11,398 10,706 6.5
Domestic Sales 2,609 2,617 (0.3) 10,114 10,564 (4.3)
Export Sales 1,498 1,391 7.7 6,444 6,434 0.2
Foreign Subsidiaries 1,919 1,838 4.4 7,593 7,021 8.1
Nominal Dollars
Total Consolidated Sales 565 516 9.3 2,212 2,076 6.6
Flat Glass 294 269 9.3 1,130 1,094 3.3
Glass Containers 261 229 14.3 1,039 918 13.2
Domestic Sales 244 223 9.4 916 876 4.5
Export Sales 140 122 14.9 588 559 5.1
Foreign Subsidiaries 180 171 5.2 708 640 10.6
% Foreign Currency Sales* /
Total Sales 57% 57% 0pp 59% 58% 0.8pp
% Export Sales / Total Sales 25% 24% 1.2pp 27% 27% -0.3pp
* Exports + Foreign Subsidiaries
EBIT and EBITDA
Consolidated EBIT for the quarter increased 72.4 percent YoY to US$42 million from US$24 million last year. EBIT margin increased 2.7 percentage points to 7.4 percent. For 2005, EBIT margin increased 0.7 percentage points.
On a comparable basis, excluding Vitro Fibras, S.A. de C.V. (VIFISA), Vitro American National Can, S.A. de C.V. (VANCAN) and Plasticos Bosco S.A. de C.V. (Bosco), which were divested March 2004, September 2004 and April 2005, respectively, consolidated EBIT for the year rose 26 percent.
EBIT for the quarter at Glass Containers increased YoY by 94.7 percent, while at Flat Glass EBIT declined 29.1 percent.
Consolidated EBITDA for the quarter increased 13.1 percent to US$91 million from US$80 million in 4Q'04. The EBITDA margin increased 0.5 percentage points YoY to 16.1 percent. For 2005, consolidated EBITDA increased 2.9 percent to US$336 million from US$327 million in 2004. On a comparable basis, excluding VIFISA, VANCAN and Bosco, consolidated EBITDA for 2005 rose 6.4 percent compared to 2004.
During the quarter, EBITDA decreased 21.5 percent YoY at Flat Glass. EBITDA at Glass Containers rose 14.6 percent. Glass Containers was the major EBITDA contributor for the quarter and the year.
Table 2: EBIT and EBITDA
Table 2
EBIT and EBITDA
(Million)
YoY% YoY%
4Q'05 4Q'04 Change 2005 2004 Change
Constant Pesos
Consolidated EBIT 449 276 62.8 1,663 1,487 11.9
Margin 7.5% 4.7% 2.8pp 6.9% 6.2% 0.7pp
Flat Glass 166 247 (33.1) 439 856 (48.8)
Glass Containers 259 144 79.9 1,227 807 52.0
Consolidated EBITDA 974 926 5.3 3,688 3,843 (4.0)
Margin 16.2% 15.8% 0.4pp 15.3% 16.0% -0.7pp
Flat Glass 323 437 (26.1) 1,104 1,624 (32.0)
Glass Containers 586 554 5.8 2,439 2,218 10.0
Nominal Dollars
Consolidated EBIT 42 24 72.4 153 128 19.6
Margin 7.4% 4.7% 2.7pp 6.9% 6.2% 0.7pp
Flat Glass 16 22 (29.1) 42 74 (44.1)
Glass Containers 24 12 94.7 112 69 62.6
Consolidated EBITDA 91 80 13.1 336 327 2.9
Margin 16.1% 15.6% 0.5pp 15.2% 15.7% -0.5pp
Flat Glass 30 38 (21.5) 102 140 (27.0)
Glass Containers 55 48 14.6 221 187 18.2
Consolidated Financing Cost
Consolidated financing cost for the quarter increased to US$32 million compared with US$12 million during 4Q'04. This was primarily driven by higher interest expense of US$44 million compared with US$38 million during 4Q'04, lower non-cash monetary position gain of US$14 million compared with US$20 million during 4Q'04 and a US$ 10 million increase in other financial expenses driven mainly by losses in derivative transactions
For 2005, total consolidated financing cost increased to US$127 million from US$115 million due to higher interest expense during the year and a lower non-cash monetary position gain of US$38 million compared with US$60 million in 2004.
Table 3: Total Financing Cost
Table 3
Total Financing Cost
(Million)
YoY% YoY%
4Q'05 4Q'04 Change 2005 2004 Change
Constant Pesos
Interest Expense 473 447 5.7 1,842 1,628 13.1
Interest Income (58) (36) 59.6 (158) (127) 24.9
Other Financial Expenses
(Gain)* 220 132 67.0 535 536 (0.2)
Foreign Exchange Loss (Gain) (145) (151) (4.3) (387) 82 --
Monetary Position (Gain) (149) (240) (37.8) (421) (718) (41.4)
Total Financing Cost (Gain) 342 152 124.6 1,411 1,401 0.7
Nominal Dollars
Interest Expense 44 38 15.6 166 136 22.1
Interest Income (5) (3) 72.9 (14) (11) 30.8
Other Financial Expenses
(Gain)* 21 11 85.7 49 45 9.4
Foreign Exchange Loss (Gain) (13) (13) 0.8 (36) 5 --
Monetary Position (Gain) (14) (20) (31.7) (38) (60) (36.7)
Total Financing Cost (Gain) 32 12 156.9 127 115 10.7
* Net of other interest income.
* Includes effect of bulletin C-10 (derivative transactions) and interest
related to factoring transactions
Taxes
Total Taxes and PSW for the year ended December 31 2005, represented an income of US$40 million compared with and expense of US$9 million for the year ended December 31 2004. As we mentioned in 2Q05, we recognized a deferred tax benefit of approximately US$55 million due to the recognition of the tax basis of certain assets of some foreign subsidiaries subject to be repatriated. Additionally, during 2005, there was a reform in the Mexican Tax Law which considers cost of goods sold as the deduction base, instead of considering the total amount of purchased goods. This change in law, negatively affected the taxable basis of some subsidiaries.
Table 4: Taxes and Profit Sharing to Workers
Table 4
Taxes and Profit Sharing to Workers
(Million)
YoY% YoY%
4Q'05 4Q'04 Change 2005 2004 Change
Constant Pesos
Accrued Income Tax 188 (150) -- 370 131 182.8
Deferred Income Tax (gain) (198) (39) 409.0 (862) (140) 516.2
Total Income Tax (10) (189) (94.8) (492) (9) 5,373.1
Profit Sharing to Workers (1) 33 -- 47 120 (60.7)
Total Taxes and PSW (11) (156) (92.8) (445) 111 --
Nominal Dollars
Accrued Income Tax 18 (13) -- 34 10 224.0
Deferred Income Tax (gain) (19) (3) 462.5 (78) (12) 576.4
Total Income Tax (1) (17) (93.1) (44) (1) 4,128.8
Profit Sharing to Workers (0) 3 -- 4 10 (59.0)
Total Taxes and PSW (1) (14) (90.7) (40) 9 --
Consolidated Net Income
During the quarter, the Company recorded a consolidated net income of US$18 million compared to US$3 million during the same quarter last year. Higher EBIT and a US$4 million Other Income figure, compared to US$29 million of other expenses during 4Q'04, helped compensate for higher financing cost and higher taxes and PTU paid and a lower gain in income tax.
Capital Expenditures (CAPEX)
Capital expenditures for the quarter totaled US$26 million, compared with US$56 million in 4Q'04. Flat Glass accounted for 18 percent and was mainly invested for maintenance purposes. Glass Containers represented 82 percent of total Capex consumption and included investment in a new IS machine, a major furnace repair, and maintenance.
Consolidated Financial Position
Consolidated gross debt as of December 31 2005 totaled US$1,383 million, a QoQ decrease of US$57 million.
Net debt, which is calculated by deducting cash and cash equivalents as well as cash collateralizing debt accounted for in other long term assets, decreased QoQ by US$2 million to US$1,218. On a YoY comparison, net debt increased US$47 million.
As of 4Q'05, the Company had a cash balance of US$165 million, of which US$141 million was recorded as cash and cash equivalents and US$24 million, which corresponded to cash collateralizing debt, that was classified as other long term assets. As of December 31 2005, 25 percent of this cash balance was restricted. Restricted cash includes cash collateralizing debt.
Table 5
Debt Indicators
(Million dollars; except as indicated)
4Q'05 3Q'05 2Q'05 1Q'05 4Q'04
Interest Coverage
(EBITDA/ Total Net Financial Exp.)
(Times) LTM 1.7 1.7 1.7 1.7 1.9
Leverage
(Total Debt / EBITDA) (Times) LTM 4.0 4.3 4.2 4.4 4.3
(Total Net Debt / EBITDA) (Times)
LTM 3.5 3.7 3.7 3.8 3.5
Total Debt 1,383 1,440 1,395 1,435 1,443
Short-Term Debt(1) 310 302 389 332 287
Long-Term Debt 1,073 1,138 1,006 1,102 1,156
Cash and Equivalents(2) 165 220 175 204 272
Total Net Debt 1,218 1,220 1,220 1,231 1,171
Currency Mix (%) dlls&Euros/Pesos
/UDI's 85/8/7 85/8/7 85/9/6 82/10/8 81/11/8
(1) Short term debt includes current maturities of long-term
debt.
(2) Includes cash collateralizing debt accounted for in the other
long term assets
-- The Company's average life of debt as of 4Q'05 was 3.9 years compared
with 3.8 years for 4Q'04.
-- Short term debt as of December 31 2005 increased by US$8 million to 22
percent as a percentage of total debt, compared with 21 percent in
3Q'05. These amounts include current maturities of long-term debt.
-- 38 percent of total short-term debt maturities are at the Holding Co.
level.
-- Revolving and other short-term debt, including trade related, accounted
for 36 percent of total short-term debt. This type of debt is usually
renewed within 28 to 180 days.
-- Current maturities of long-term debt, including current maturities of
market debt, increased by US$61 million to US$199 million from US$138
as of September 30, 2005, and as of 4Q'05 represented 64 percent of
total short term debt.
-- Approximately 62 percent of debt maturities due in 2006 are at the
operating subsidiary level and are principally related to syndicated
facilities.
-- Market maturities during 2006 include medium-term notes denominated in
UDI's. Maturities for 2007 include the Senior Notes at the Holding
Company level.
-- Market maturities from 2008, 2009 and thereafter, include the Senior
Notes due 2011 at VENA, the 2010 Secured Term Loan at VENA, long-term
"Certificados Bursatiles", a Private Placement, and the Senior Notes
due 2013 at the Holding Company level.
Cash Flow
Net free cash flow for the quarter increased to US$23 million compared to a negative US$22 million in 4Q'04. Lower investment in capex during 4Q'05 as a result of the Flat Glass investment in the repair of the VF1 furnace during 4Q'04 and a working capital recovery helped compensate for higher net interest expense and cash taxes paid during the quarter.
For 2005, the Company recorded net free cash flow of US$29 million compared with US$6 million in the same period last year. Recovery of working capital helped compensate for higher interest expenses and cash taxes paid.
Table 6: Cash Flow Analysis
Table 6
Cash Flow from Operations Analysis(1)
(Million)
YoY% YoY%
4Q'05 4Q'04 Change 2005 2004 Change
Constant Pesos
EBITDA 974 926 5.3 3,688 3,843 (4.0)
Net Interest Expense(2) (512) (447) 14.7 (2,075) (1,576) 31.6
Capex (277) (636) (56.4) (1,015) (1,361) (25.4)
Working Capital(3) 198 (6) -- 232 (604) --
Dividends (5) (57) (90.6) (176) (226) (22.2)
Cash Taxes (paid)
recovered (128) (33) 291.2 (379) (13) 2,814.1
Net Free Cash Flow 250 (253) -- 275 63 334.9
Nominal Dollars
EBITDA 91 80 13.1 336 327 2.9
Net Interest Expense(2) (48) (38) 25.3 (188) (132) 42.6
Capex (26) (56) (53.3) (93) (117) (20.9)
Working Capital(3) 19 0 -- 23 (51) --
Dividends (1) (6) (91.5) (16) (20) (20.8)
Cash Taxes (paid)
recovered (12) (3) 315.7 (34) (1) 2,908.5
Net Free Cash Flow 23 (22) -- 29 6 348.1
(1) This statement is a Cash Flow statement and it does not represent a
Statement of Changes in Financial Position according with the
Mexican GAAP
(2) Includes derivative transactions, and other financial expenses and
products.
(3) Includes: Clients, inventories, suppliers, other current assets and
liabilities, IVA (Value Added Tax) and ISCAS taxes (Salary Special
Tax)
Key Developments
Vitro Plan agrees to sell its 51 Percent of Shares of Quimica M
On November 29 2005 the Company announced that its subsidiary Vitro Plan S.A. de C.V. has signed an agreement with Solutia to pursue the sale of its 51 percent of shares in Quimica M, S.A. de C.V., a joint venture between these two companies located near the city of Puebla in Mexico, with Solutia currently owing 49 percent of the shares. The closing of the transaction for approximately US$20 million is subject to approval by government authorities in Mexico and the US. With annual sales in 2004 of US$47 million, Quimica M produces PVB interlayers which are used by major glass producers such as Vitro to make laminated glass for use in automobiles and buildings. This sale is in line with Vitro's Strategic Plan aimed at reducing the Company's debt.
Vitro Announces Successful Closing of US$75 million Secured Short Term Notes Issued by Vitro Envases Norteamerica, S.A. de C.V. ("Vena")
On February 7 2006 the Company announced that its subsidiary Vena, Vitro's glass containers division, successfully closed the issuance of US$75 million aggregate principal amount of Senior Secured Short Term Guaranteed Notes (the "Notes"). The facility is secured, on a pari passu basis, with the existing senior secured indebtedness of Vena. The Notes have a maturity of 12 months and a yield of 8 percent. The net proceeds are being used to refinance debt at Vena's level and for working capital purposes. The market reacted very positively to the offering, which was oversubscribed. The arranger and dealer of the Notes was BCP Securities, LLC.
Vitro Club
The Vitro Clubs, located in Monterrey and Queretaro, Mexico, manage land and facilities for third parties and our employees' recreational activities. These assets are held in trusts. The trusts can only be executed if all the participants name one entity as the sole trustee. In December 2005, the participants named Vitro as the sole trustee and therefore Vitro recognized an income of approximately US$40 million.
Flat Glass
(51 percent of 2005 Consolidated Sales)
Sales
Flat Glass sales for the quarter increased 9.3 percent YoY to US$294 million from US$269 million.
Domestic sales increased 13.7 percent YoY, mainly as a result of higher automotive sales which offset lower construction-related sales. On a QoQ comparison, construction-related volumes have increased 31 percent compared with 3Q'05.
Export sales increased 16.1 percent YoY, due to both higher automotive and construction-related sales.
Automotive sales increased 38.8 percent YoY driven by larger volumes from new platforms launched this year. These new platforms improved product mix at the OEM line and continue to compensate for lower volumes in the Auto Glass Replacement ("AGR") market.
Sales from foreign subsidiaries continued an upward trend, increasing 4.3 percent YoY to US$147 million from US$141 million. Sales at the Spanish subsidiary remained flat YoY compared with the same quarter last year. In addition, sales at Vitro America rose 9.6 percent compared with 4Q'04, mainly driven by higher volumes in the construction market. Vitro Colombia's sales rose 16.3 percent during the same period as a result of increased demand and better product mix.
EBIT & EBITDA
EBIT decreased 29.1 percent YoY to US$16 million from US$22 million, while EBITDA fell 21.5 percent to US$30 million from US$38 million. During the same period, EBIT and EBITDA margins decreased 2.9 and 4.0 percentage points respectively.
On a YoY comparison, EBIT and EBITDA continue to be affected by higher energy costs, lower volumes to the AGR market, and a change in product mix. Comparing QoQ, EBIT improved 6 percent and EBITDA increased 4 percent.
Vitro America and Vitro Colombia continue to generate strong EBITDA, with increases of 128 and 37 percent YoY, respectively.
Table 7: Flat Glass
Table 7
Flat Glass
(Million)
YoY% YoY%
4Q'05 4Q'04 Change 2005 2004 Change
Constant Pesos
Consolidated Net sales 3,132 3,002 4.3 12,274 12,548 (2.2)
Net Sales
Domestic Sales 804 784 2.6 2,645 3,259 (18.8)
Exports 759 712 6.5 3,310 3,460 (4.3)
Foreign
Subsidiaries 1,569 1,506 4.2 6,318 5,829 8.4
EBIT 166 247 (33.1) 439 856 (48.8)
EBITDA 323 437 (26.1) 1,104 1,624 (32.0)
EBIT Margin 5.3% 8.2% -2.9pp 3.6% 6.8% -3.2pp
EBITDA Margin 10.3% 14.5% -4.2pp 9.0% 12.9% -3.9pp
Nominal Dollars
Consolidated Net sales 294 269 9.3 1,130 1,094 3.3
Domestic Sales 76 67 13.7 242 267 (9.7)
Export Sales 71 61 16.1 298 294 1.6
Foreign
Subsidiaries 147 141 4.3 590 533 10.6
EBIT 16 22 (29.1) 42 74 (44.1)
EBITDA 30 38 (21.5) 102 140 (27.0)
EBIT Margin 5.3% 8.2% -2.9pp 3.7% 6.8% -3.1pp
EBITDA Margin 10.3% 14.3% -4pp 9.0% 12.9% -3.9pp
Volumes
Flat Glass (Thousands
of m2B)(2) 36,786 37,353 (1.5) 138,502 153,316 (9.7)
Capacity utilization
Flat Glass furnaces(1) 100% 107% -7pp
Flat Glass auto 90% 82% 8pp
(1) Capacity utilization may sometimes be greater than 100 percent
because pulling capacity is calculated based on
a certain number of changes in glass color & thickness, determined
by historical averages.
(2) m2B = Reduced Squared Meters
Glass Containers
(47 percent of 2005 Consolidated Sales)
Sales
Sales increased 14.3 percent YoY to US$261 million from US$229 million.
The main drivers behind the 15.5 percent YoY increase in domestic sales were higher beer and soft drinks volumes coupled with a better price mix across all segments
Export sales grew 13.8 percent due to a strong rise in sales volume at the CFT and Wine & Liquor lines in the US.
Sales from Glass Containers' foreign subsidiaries rose 9.7 percent YoY, reflecting increased demand in Central and South America.
EBIT and EBITDA
EBIT for the quarter increased 94.7 percent YoY to US$24 million from US$12 million in 4Q'04. EBITDA for the same period rose 14.6 percent to US$55 million from US$48 million.
EBITDA growth continued to be driven by higher volumes, improved production efficiencies, and better product mix, which more than offset increased energy costs.
EBITDA from Mexican glass containers operations, which is VENA's core business and represents approximately 83 percent of total EBITDA, rose 22 percent YoY.
The Company's cost reduction efforts continued to benefit results during 2005. COGS was reduced by more than 3 percent of sales compared to 2004.
Table 8: Glass Containers
Table 8
Glass Containers
(Million)
YoY% YoY%
4Q'05 4Q'04 Change 2005 2004 Change
Constant Pesos
Consolidated Net sales 2,793 2,624 6.5 11,398 10,706 6.5
Net Sales
Domestic Sales 1,704 1,612 5.7 6,990 6,541 6.9
Exports 739 679 8.9 3,134 2,973 5.4
Foreign Subsidiaries 350 333 5.2 1,274 1,192 6.9
EBIT 259 144 79.9 1,227 807 52.0
EBITDA 586 554 5.8 2,439 2,218 10.0
EBIT Margin 9.3% 5.5% 3.8pp 10.8% 7.5% 3.3pp
EBITDA Margin 21.0% 21.1% -0.1pp 21.4% 20.7% 0.7pp
Nominal Dollars
Consolidated Net sales 261 229 14.3 1,039 918 13.2
Domestic Sales 159 137 15.5 631 545 15.8
Export Sales 70 61 13.8 290 266 9.0
Foreign Subsidiaries 33 30 9.7 118 107 10.6
EBIT 24 12 94.7 112 69 62.6
EBITDA 55 48 14.6 221 187 18.2
EBIT Margin 9.3% 5.4% 3.9pp 10.7% 7.5% 3.2pp
EBITDA Margin 20.9% 20.8% 0.1pp 21.3% 20.4% 0.9pp
Glass Containers
Domestic (Millions of
Units) 1,067 1,040 2.6 4,380 3,926 11.6
Exports (Millions of
Units) 300 269 11.5 1,220 1,164 4.8
Total 1,367 1,309 4.4 5,600 5,090 10.0
Capacity utilization
(furnaces) 99% 93% 6pp
Capacity utilization
(production lines) 87% 85% 2pp
Soda Ash (Thousands Tons) 154 148 4.1 596 573 4.0
Glassware
(As a discontinued operation)
As of December 31, 2005, negotiations with Libbey had advanced to a level that let us to conclude that according to GAAP, Crisa had to be classified as a discontinued operation.
Sales
Sales decreased 16.1 percent YoY to US$52 million from US$62 million in 4Q'04. On a comparable basis, excluding Bosco, which was divested in April 2005, sales increased 1 percent.
During the quarter, domestic sales decreased 20.1 percent partially due to the divestiture of Bosco. In addition, domestic sales reflected lower volumes at the wholesale and industrial product lines.
Sales reflected a better product mix in the retail, industrial, and OEM product lines during the quarter compared with 4Q'04.
EBIT and EBITDA
EBIT for the quarter increased YoY 6.9 percent to US$2 million. EBITDA for the same period increased 4.5 percent to US$7 million. EBIT and EBITDA margins rose YoY 1 and 2.7 percentage points respectively.
Higher energy costs and lower capacity utilization continued to be the main factors affecting EBITDA margins.
Cost reduction efforts helped compensated for the above-mentioned factors, with savings in salaries, packaging costs, and increased efficiencies in natural gas consumption.
Table 9: Glassware
Table 9
Glassware
(Million)
YoY% YoY%
4Q'05 4Q'04 Change 2005 2004 Change
Constant Pesos
Consolidated Net sales 561 725 (22.5) 2,294 2,762 (16.9)
Net Sales
Domestic Sales 376 508 (26.0) 1,454 1,829 (20.5)
Exports 186 217 (14.3) 840 933 (10.0)
EBIT 26 27 (5.1) 57 85 (33.2)
EBITDA 77 81 (5.1) 297 378 (21.4)
EBIT Margin 4.6% 3.7% 0.9pp 2.5% 3.1% -0.6pp
EBITDA Margin 13.7% 11.2% 2.5pp 13.0% 13.7% -0.7pp
Nominal Dollars
Consolidated Net sales 52 62 (16.1) 208 233 (11.0)
Domestic Sales 35 44 (20.1) 132 155 (15.1)
Export Sales 17 19 (6.6) 76 78 (3.0)
EBIT 2 2 6.9 5 7 (26.4)
EBITDA 7 7 4.5 27 32 (14.9)
EBIT Margin 4.6% 3.6% 1pp 2.5% 3.1% -0.6pp
EBITDA Margin 13.7% 11.0% 2.7pp 12.9% 13.5% -0.6pp
Sales mix glassware products
(Volume terms)
Retail 32.1% 28.7% 3.4pp 33.1% 32.9% 0.2pp
Wholesaler 19.1% 20.5% -1.4pp 25.8% 25.0% 0.8pp
Industrial 45.6% 47.3% -1.7pp 36.9% 37.9% -1pp
OEM 3.1% 3.5% -0.4pp 4.2% 4.2% 0pp
Capacity utilization
(installed) 74% 83% -9pp
Capacity utilization
(available) 80% 83% -3pp
CONSOLIDATED
VITRO, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS, (MILLION)
Fourth Quarter
INCOME STATEMENT Constant Pesos Nominal Dollars
2005 2004 % Var. 2005 2004 % Var.
Consolidated Net Sales 6,026 5,846 3.1 565 516 9.3
Cost of Sales 4,288 4,231 1.3 402 374 7.5
Gross Income 1,738 1,616 7.6 163 143 14.2
SG&A Expenses 1,289 1,340 (3.8) 121 118 2.2
Operating Income 449 276 62.8 42 24 72.4
Interest Expense 473 447 5.7 44 38 15.6
Interest Income (58) (36) 59.6 (5) (3) 72.9
Other Financial Expenses
(net) 220 132 67.0 21 11 85.7
Exchange Loss (Gain) (145) (151) (4.3) (13) (13) 0.8
Gain from Monet. Position (149) (240) (37.8) (14) (20) (31.7)
Total Financing Cost 342 152 124.6 32 12 156.9
Other Income (49) 329 -- (4) 29 --
Inc. (loss) bef. Tax & PSW 156 (205) -- 14 (17) --
Income Tax and PSW (11) (156) 92.8 (1) (14) 90.7
Net Inc. (loss) Cont. Opns. 167 (49) -- 16 (3) --
Income (loss)of Discont.
Oper. 19 74 2 7
Extraordinary Items, Net 0 - 0 -
Net Income (Loss) 186 26 629.4 18 3 414.6
Net Income (loss) of Maj.
Int. 179 (91) -- 17 (7) --
Net Income (loss) of Min.
Int. 7 116 (93.9) 1 10 (93.6)
January - December
INCOME STATEMENT Constant Pesos Nominal Dollars
2005 2004 % Var. 2005 2004 % Var.
Consolidated Net
Sales 24,150 24,018 0.5 2,212 2,076 6.6
Cost of Sales 17,449 17,393 0.3 1,597 1,502 6.3
Gross Income 6,701 6,626 1.1 615 573 7.2
SG&A Expenses 5,038 5,139 (2.0) 462 445 3.6
Operating Income 1,663 1,487 11.9 153 128 19.6
Interest Expense 1,842 1,628 166 136 22.1
Interest Income (158) (127) 24.9 (14) (11) 30.8
Other Financial
Expenses (net) 535 536 (0.2) 49 45 9.4
Exchange Loss (Gain) (387) 82 -- (36) 5 --
Gain from Monet.
Position (421) (718) (41.4) (38) (60) (36.7)
Total Financing Cost 1,411 1,401 0.7 127 115 10.7
Other Income 400 137 193.1 36 14 168.3
Inc. (loss) bef. Tax
& PSW (148) (51)(191.5) (10) (0) --
Income Tax and PSW (445) 111 -- (40) 9 --
Net Inc. (loss) Cont.
Opns. 297 (161) -- 29 (9) --
Income (loss)of
Discont. Oper. 3 89 -- 0 8 --
Extraordinary Items,
Net (94) -- (8) --
Net Income (Loss) 206 (72) -- 21 (1) --
Net Income (loss) of
Maj. Int. 49 (295) -- 7 (21) --
Net Income (loss) of
Min. Int. 157 223 (29.5) 15 20 (26.1)
VITRO, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, (Million)
Constant Pesos Nominal Dollars
BALANCE SHEET 2005 2004 % Var. 2005 2004 % Var.
Cash & Cash Equivalents 1,502 2,831 (47.0) 141 248 (43.2)
Trade Receivables 1,206 1,970 (38.8) 113 176 (35.7)
Inventories 3,833 3,723 2.9 360 334 8.1
Other Current Assets 2,398 1,243 92.9 225 103 118.7
Current Assets from
Disc. Operations 743 940 (21.0) 70 82 (14.8)
Total Current Assets 9,680 10,707 (9.6) 910 943 (3.5)
Prop., Plant & Equipment 16,123 17,671 (8.8) 1,516 1,551 (2.2)
Deferred Assets 1,638 1,711 (4.2) 154 158 (2.5)
LT Assets from Disc.
Operations 1,128 1,079 4.6 106 116 (8.8)
Other Long-Term Assets 1,491 541 175.5 140 33 328.0
Total Assets 30,061 31,709 (5.2) 2,827 2,801 0.9
Short-Term & Curr. Debt 3,297 3,261 1.1 310 287 8.2
Trade Payables 1,842 1,897 (2.9) 173 170 2.0
Other Current
Liabilities 2,538 2,326 9.1 239 197 21.3
Current Liabilities from
Disc. Operations 346 507 (31.9) 32 44 (26.2)
Total Curr. Liab. 8,023 7,992 0.4 754 697 8.2
Long-Term Debt 11,412 13,281 (14.1) 1,073 1,156 (7.2)
Other LT Liabilities 1,361 1,352 0.7 128 106 20.9
LT Liabilities from
Disc. Operations 949 1,018 (6.7) 89 111 (19.3)
Total Liabilities 21,745 23,643 (8.0) 2,045 2,070 (1.2)
Majority interest 5,487 5,308 3.4 516 480 7.5
Minority Interest 2,830 2,759 2.6 266 251 5.9
Total Shar. Equity 8,316 8,067 3.1 782 731 7.0
FINANCIAL INDICATORS 4Q'05 4Q'04
Debt/EBITDA (LTM, times) 4.0 4.3
EBITDA/ Total Net Fin. Exp. (LTM, times) 1.7 1.9
Debt/Firm Value (times) 0.6 0.7
Debt/Equity (times) 1.8 2.1
Total Liab./Stockh. Equity (times) 2.6 2.9
Curr. Assets/Curr. Liab. (times) 1.2 1.3
Sales/Assets (times) -- --
EPS (Ps$) * 0.61 (0.31)
EPADR (US$) * 0.17 0.07
* Based on the weighted average shares outstanding.
OTHER DATA
# Shares Issued (thousands) 324,000 324,000
# Average Shares Outstanding (thousands) 295,728 295,728
# Employees 24,637 25,465
VITRO, S.A. DE C.V. AND SUBSIDIARIES
SEGMENTED INFORMATION
FOR THE PERIODS, (MILLION)
Fourth Quarter
Constant Pesos Nominal Dollars
2005 2004 % 2005 2004 %
FLAT GLASS
Net Sales 3,133 3,002 4.3% 294 269 9.3%
Interd. Sales 0 0 -36.5% 0 0 -20.0%
Con. Net Sales 3,132 3,002 4.3% 294 269 9.3%
Expts. 759 712 6.5% 71 61 16.1%
EBIT 166 247 -33.1% 16 22 -29.1%
Margin (1) 5.3% 8.2% 5.3% 8.2%
EBITDA 323 437 -26.1% 30 38 -21.5%
Margin (1) 10.3% 14.5% 10.3% 14.3%
Flat Glass Volumes
(Thousand m2B)(3)
Const + Auto 36,786 37,353 -1.5%
GLASS CONTAINERS
Net Sales 2,817 2,676 5.3% 264 233 13.0%
Interd. Sales 24 53 -54.7% 2 5 -51.0%
Con. Net Sales 2,793 2,624 6.5% 261 229 14.3%
Expts. 739 679 8.9% 70 61 13.8%
EBIT 259 144 79.9% 24 12 94.7%
Margin (1) 9.3% 5.5% 9.3% 5.4%
EBITDA 586 554 5.8% 55 48 14.6%
Margin (1) 21.0% 21.1% 20.9% 20.8%
Glass containers volumes
(MM Pieces)
Domestic 1,067 1,040 2.6%
Exports 300 269 11.5%
Total:Dom.+Exp. 1,367 1,309 4.4%
Soda Ash (Thousand Tons) 154 148 4.1%
CONSOLIDATED (2)
Net Sales 6,051 5,909 2.4% 567 522 8.6%
Interd. Sales 25 63 -60.2% 2 5 -56.8%
Con. Net Sales 6,026 5,846 3.1% 565 516 9.3%
Expts. 1,498 1,391 7.7% 140 122 14.9%
EBIT 449 276 62.8% 42 24 72.4%
Margin (1) 7.5% 4.7% 7.4% 4.7%
EBITDA 974 926 5.3% 91 80 13.1%
Margin (1) 16.2% 15.8% 16.1% 15.6%
January - December
Constant Pesos Nominal Dollars
2005 2004 % 2005 2004 %
FLAT GLASS
Net Sales 12,276 12,613 -2.7% 1,130 1,100 2.8%
Interd. Sales 2 65 -96.4% 0 5 -96.2%
Con. Net Sales 12,274 12,548 -2.2% 1,130 1,094 3.3%
Expts. 3,310 3,460 -4.3% 298 294 1.6%
EBIT 439 856 -48.8% 42 74 -44.1%
Margin (1) 3.6% 6.8% 3.7% 6.8%
EBITDA 1,104 1,624 -32.0% 102 140 -27.0%
Margin (1) 9.0% 12.9% 9.0% 12.8%
Flat Glass Volumes
(Thousand m2B)(3)
Const + Auto 138,502 153,316 -9.7%
GLASS CONTAINERS
Net Sales 11,526 10,869 6.1% 1,051 932 12.8%
Interd. Sales 129 162 -20.8% 12 14 -16.0%
Con. Net Sales 11,398 10,706 6.5% 1,039 918 13.2%
Expts. 3,134 2,973 5.4% 290 266 9.0%
EBIT 1,227 807 52.0% 112 69 62.6%
Margin (1) 10.8% 7.5% 10.7% 7.5%
EBITDA 2,439 2,218 10.0% 221 187 18.2%
Margin (1) 21.4% 20.7% 21.3% 20.4%
Glass containers
volumes (MM Pieces)
Domestic 4,380 3,926 11.6%
Exports 1,220 1,164 4.8%
Total:Dom.+Exp. 5,600 5,090 10.0%
Soda Ash (Thousand Tons)
CONSOLIDATED (2)
Net Sales 24,293 24,278 0.1% 2,225 2,098 6.1%
Interd. Sales 143 260 -45.0% 13 22 -41.6%
Con. Net Sales 24,150 24,018 0.5% 2,212 2,076 6.6%
Expts. 6,444 6,434 0.2% 588 559 5.1%
EBIT 1,663 1,487 11.9% 153 128 19.6%
Margin (1) 6.9% 6.2% 6.9% 6.2%
EBITDA 3,688 3,843 -4.0% 336 327 2.9%
Margin (1) 15.3% 16.0% 15.2% 15.7%
(1) EBIT and EBITDA Margins consider Consolidated Net Sales.
(2) Includes corporate companies and other's sales and EBIT.
(3) m2B = Reduced Squared Meters
VITRO ENVASES DE NORTEAMERICA, S.A. DE C.V., VITRO PACKAGING AND EMPRESAS
COMEGUA AND SUBSIDIARIES
CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS
FOR THE PERIODS, (MILLION)
Fourth Quarter
INCOME STATEMENT
Constant Pesos Nominal Dollars
2005 2004 % Var. 2005 2004 % Var.
Consolidated Net
Sales 2,801 2,652 5.6 262 231 13.5
Cost of Sales 2,083 2,090 (0.3) 195 182 7.1
Gross Income 719 562 27.9 67 49 37.4
SG&A Expenses 460 419 9.8 43 37 17.6
Operating Income 259 143 81.2 24 12 96.2
Interest Expense 230 157 46.3 21 13 58.8
Interest Income (29) (15) (3) (1)
Other Financial
Expenses 43 49 (12.9) 4 4 (6.1)
Exchange Loss (Gain) (54) (71) (24.6) (5) (6) (16.5)
Gain from Monet.
Position 78 95 (18.0) 7 8 (10.1)
Total Financing Cost 151 25 506.6 14 2 529.3
Other Income (24) (52) 54.8 (2) (4) 50.3
Inc. (loss) bef.
Tax & PSW 84 66 28.4 8 6 39.6
Income Tax and PSW 51 3 -- 5 0 --
Net Inc. (loss)
Cont. Opns. 34 63 (46.6) 3 5 (42.5)
(Loss) on disposal
of discontinued
operations -- -- -- --
Income (loss)of
Discont. Oper. 0 (0) -- -- 0 --
Extraordinary Items,
Net -- -- -- --
Net Income (Loss) 34 63 (46.6) 3 5 (42.5)
EBITDA 586 555 5.6 55 48 14.4
January - December
INCOME STATEMENT Constant Pesos Nominal Dollars
2005 2004 % Var. 2005 2004 % Var.
Consolidated Net
Sales 11,492 10,331 11.2 1,047 885 18.4
Cost of Sales 8,617 8,059 6.9 785 690 13.8
Gross Income 2,875 2,271 26.6 262 195 34.6
SG&A Expenses 1,652 1,517 8.9 151 131 15.6
Operating Income 1,223 754 62.2 111 64 73.3
Interest Expense 758 626 21.1 68 52 30.6
Interest Income (77) (25) (7) (2) 227.1
Other Financial
Expenses 255 170 50.0 23 14 60.5
Exchange Loss
(Gain) (173) 32 -- (16) 2 --
Gain from Monet.
Position 199 261 (23.9) 18 22 (17.5)
Total Financing
Cost 586 542 8.1 52 45 16.7
Other Income (64) (85) 25.4 (6) (7) 19.6
Inc. (loss) bef.
Tax & PSW 574 127 350.8 53 12 338.0
Income Tax and PSW 26 134 (80.6) 3 12 (75.9)
Net Inc. (loss)
Cont. Opns. 548 (7) -- 50 1 --
(Loss) on disposal
of discontinued
operations -- (38) -- -- (3) --
Income (loss)of
Discont. Oper. 0 30 (100.0) -- 3 --
Extraordinary
Items, Net (89) -- (8) --
Net Income (Loss) 459 (14) -- 42 0 --
EBITDA 2,436 2,159 12.8 221 182 21.2
VITRO ENVASES DE NORTEAMERICA, S.A. DE C.V., VITRO PACKAGING AND
EMPRESAS COMEGUA AND SUBSIDIARIES
CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS
As of December 31, (Million)
Constant Pesos Nominal Dollars
BALANCE SHEET 2005 2004 % Var. 2005 2004 % Var.
Cash & Cash Equivalents 936 340 174.9 88 30 190.9
Trade Receivables 759 871 (12.9) 71 77 (7.8)
Inventories 1,486 1,585 (6.2) 140 141 (0.9)
Notes receivable from
affiliates 660 22 -- 62 2 --
Other Current Assets 913 433 110.8 86 34 150.5
Total Current Assets 4,754 3,253 46.2 447 285 56.9
Prop., Plant &
Equipment 8,038 8,622 (6.8) 756 755 0.1
Deferred Assets 617 592 4.1 58 51 12.6
Other Long-Term Assets 35 30 17.0 3 3 21.9
Total Assets 13,444 12,496 7.6 1,264 1,094 15.5
Short-Term & Curr. Debt 521 214 143.1 49 19 158.5
Notes payable to
affiliates 2 3 (30.5) 0 0 (24.7)
Trade Payables 861 847 1.7 81 74 9.3
Other Current
Liabilities 2,081 1,239 67.9 196 109 80.1
Total Curr. Liab. 3,465 2,304 50.4 326 202 61.4
Long-Term Debt 5,360 4,700 14.0 504 409 23.3
Long-Term notes
payable to affiliates -- 703 -- 61
Other LT Liabilities 1,016 1,554 (34.7) 96 136 (29.6)
Total Liabilities 9,841 9,261 6.3 925 807 14.6
Majority interest 2,878 2,486 15.8 271 219 23.6
Minority Interest 725 749 (3.3) 68 68 0.1
Total Shar. Equity 3,603 3,235 11.4 339 287 18.0
FINANCIAL INDICATORS 4Q'05 4Q'04
Debt/EBITDA (LTM, times) 2.4 2.6
EBITDA/ Total Net Fin. Exp. (LTM, times) 2.6 2.8
Debt/Equity (times) 1.6 1.7
Total Liab./Stockh.
Equity (times) 2.7 2.8
Curr. Assets/Curr.
Liab. (times) 1.4 1.4
Vitro Envases Norteamerica and Subsidiaries, Vitro Packaging, Inc. and
Empresas Comegua and Subsidiaries
CONSOLIDATED AND COMBINED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(Million of constant Mexican pesos as of December 31,2005)
FOR THE TWELVE MONTHS PERIOD
ENDED December 30
2005 2004
OPERATING ACTIVITIES:
Net (loss) from continuing operations 548 (7)
Items that did not require(generate) resources: -- --
Depreciation and amortization 1,054 1,283
Amortization of debt issue costs 94 58
Provision for seniority premium and pension 159 122
Write-off and loss on sale of fixed assets (0) 9
Market value of derivatives 51 --
Extraordinary Item (89) --
Deferred income tax and workers'
profit sharing (558) 42
1,258 1,507
(Increase) in trade receivables 112 (112)
Decrease (increase) in inventories 83 (173)
Increase (Decrease) in trade payables 14 44
Change in other current assets and
liabilities, net 327 57
Pension funding payments (150) (109)
Resources generated from continued operations 1,645 1,215
Net income from discontinued operations 0 30
Proceeds from disposal of
discontinued operations -- 888
Operating assets and liabilities
from discontinued operations -- (68)
Resources generated from operations 1,645 2,066
FINANCING ACTIVITIES: -- --
Bank loans 1,021 2,314
Notes payable to affiliates (704) (2,656)
Payment of dividends (16) (34)
Increase of capital stock -- --
Effect from discontinued operations -- 47
Resources used in financing
activities 301 (329)
INVESTING ACTIVITIES: -- --
Investment in land and buildings,
machinery and equipment, and
construction in progress (575) (675)
Sale of fixed assets 1 19
Investment in deferred charges (134) (157)
Notes receivable from affiliates (638) 20
Long term receivables (5) 161
Investment in subsidiaries -- (1,010)
Effect from discontinued operations -- (10)
Resources used in investing
activities (1,350) (1,652)
Decrease in cash and cash
equivalents 595 84
Balance at the beginning of year 340 257
Balance at the end of the period 936 340
CONSOLIDATED AND COMBINED OF VENA AND SUBSIDIARIES, VITRO PACKAGING
AND COMEGUA AND SUBSIDIARIES
Cash Flow from Operations Analysis(1)
(Million)
YoY% YoY%
4Q'05 4Q'04 Change 2005 2004 Change
Nominal Dollars
EBITDA 55 48 14.4 221 182 21.2
Net Interest Expense(2) (15) (2) 898.9 (86) (50) 71.1
Capex (21) (36) (40.8) (53) (58) (9.5)
Working Capital(3) 12 (24) -- 16 (36) --
Dividends -- -- -- (2) (3) (49.7)
Cash Taxes paid (5) 16 -- (15) 2 --
Net Free Cash Flow 25 2 928.2 82 37 121.9
(1) This statement is a Cash Flow statement and it does not represent a
Statement of Changes in Financial Position according with Mexican
GAAP
(2) Includes other financial expenses and products.
(3) Includes; Clients, Inventories, suppliers, other current assets and
liabilities and IVA (Value Added Tax) and ISCAS taxes (Salary
Special Tax)
