FOR IMMEDIATE RELEASE
MADECO S.A. ANNOUNCES
CONSOLIDATED RESULTS FOR THE FIRST QUARTER OF 2007
(Santiago, Chile, April 25, 2007) Madeco S.A. ("Madeco") (NYSE ticker: MAD) today announced its consolidated financial results in Chilean GAAP for the first quarter ended March 31, 2007. All figures are expressed in Chilean pesos as of March 31, 2007. Translations to US dollars made in this report are based on the exchange rate on that date (US$1.00 = Ch$539.21) and UF1.00= Ch$18,372.97 as of Mach 31, 2007.
Madeco Highlights
- As it was reported previously, Madeco acquired the 80% of the shares of Cedsa, at the price of US$3.7 million, paid in cash. The agreement was reached on February 12, 2007 and includes a commitment to carry out a capital increase of US$ 6 million in two steps (March and September 2007), to be subscribed and paid proportionally to their respective shares.
- In addition, on March 1st 2007, Alusa (Madeco's subsidiary) increased in 24.4% its shareholding in Tech Pak, at the price of US$ 5.3 million reaching the 50% share. Additionally, Alusa increased a 14.5% share in Peruplast at a price of US$3.2 million reaching a shareholding of 39.5%. Also, the Peruvian investor Nexus Group got equivalent share in both companies and reached with Alusa a shareholder agreement for the administration of both companies, through as Alusa reports financial statements consolidated with both companies (Peruplast and Tech Pak) in the 1Q07. On the other hand, Shintec -current Peruplast shareholder- has signed a commitment through as will sell a 10.5% share to Alusa which would reach a 50% in Peruplast.
- For the first quarter of 2007, the Company produced a net income of Ch$6,564 million, 1% less than the Ch$6,625 million reported for same period of 2006 in spite of an increase in the operating income of Ch$957 million and a lower charge for income tax, minority interest and others of Ch$215 million. These were offset by a higher charge for the non-operating result of Ch$1.233 million.
- Revenues in 1Q07 increased by 25% compared to 1Q06, reaching Ch$152,359 million. This rise for the first quarter is explained by the increase in the price of raw materials which was passed on to customers in the sales price and a rise of 11% in sales volumes.
- The 11% increase in sale volumes comprises the cable volumes of Cedsa (80% share acquisition in February 2007, Colombia) and the flexible packaging volumes of Peruplast and Tech Pak (share increase in March 2007, Peru) companies reported in the consolidated statements from 1Q07. These companies have an effect of 2% and 14% respectively of the quarter volumes increase.
- The operating income in the first quarter rose by 9.8% reaching Ch$10,725 million, partly explained by higher sales volumes compared to the same period of 2006 and a 15.6% increase in the gross income explained mostly for the consolidation of the subsidiaries Cedsa, Peruplast and Tech Pak from 1Q07 in the financial statements. This increase was balanced by a 25.0% rise in the ratio of selling, general and administrative expenses to sales.
- At the 1Q07, the cash and cash equivalents was Ch$21,024 million compared to Ch$6,291 million in 1Q06. Madeco thus improved its already solid financial position reflected in a current ratio of 2.69 (times), against 2.10 as of March 2006.
Highlights of the Income Statement(Exhibit 1)
Net Income Net income for 1Q07 was Ch$6,564 million, 0.9% lower than the Ch$6,625 million produced in the first quarter of 2006. This was mainly due to a higher non-operating loss of Ch$1,233 million (+135.3%) compared to the 1Q06. This was partially offset by an increase in operating income of Ch$957 million and a lower charge for income tax, minority interest and others of Ch$215 million.
RevenuesRevenues in1Q07 were Ch$152,359 million, a 25.3% increase over the same period of the previous year. This increase in consolidated revenues is basically explained by the higher copper and aluminum prices during 2007 - with a price effect of $17,800 million - and the contribution of the new consolidating companies (Peruplast, Tech Pak y Cedsa) which have an addition effect of Ch$13,526 million. Sales volumes in the quarter showed an increase of 4,112 tonnes (includes volumes of the consolidating new companies), 11.5% above 1Q06 with an effect of $12,996 million.
Gross IncomeThe gross income 1Q07 was Ch$18,206 million, 15.6% more than the Ch$15,754 million of the 1Q06 as a result of the 25.3% increase in revenues and a 26.8% increase in the cost of sales. The increase in the cost of sales is basically due to the higher cost of the principal raw materials, like copper and aluminum. The rise in the average copper price (LME) in the first quarter of 2007, compared to the average price in same quarter of 2006 was 20% in dollar terms (from US$4,944 to US$5,941 per tonne); in the case aluminum, the rise was 16%, also in dollars (from US$2,421 to US$2,797 per tonne).
Operating Income Operating income for 1Q07 amounted to Ch$10,725 million, 9.8% higher than the Ch$9,768 million obtained in the same period of the year before. The rise on the operating income is explained by an increase of 15.6% in the gross income, also the rise was offset in part by a 25.0% increase of selling, general and administrative expenses as a result of the higher turnover, the higher costs involved in the implementation of the Sarbanes Oxley Act requirements and the consolidating expenses of Peruplast, Tech Pak and Cedsa.
Non-Operating ResultThe Company's non-operating lossfor 1Q07 amounted toCh$2,145 million, 135.3% higher than the loss of Ch$912 million reported for the 1Q06. This is basically due to an increase of financial expenses of Ch$687 million -as result of increasing interest, bank and COMEX expenses and financial trade taxes- and a price-level restatements loss of Ch$163 million, compared to a gain of Ch$297 million in 1Q06. The lower gain from exchange differences in the 1Q07 is principally the result of the lower appreciation of the Brazilian Real (BRL) compared to the 1Q06. These were offset by higher non-operating revenues as result of land leasing and assets for sale.
Income Tax During the 1Q07, income tax was Ch$1,288 million, compared to Ch$1,831 million in the same period of the year before, as a result of a gain for deferred taxes.
Minority Interest The Company's minority interest (reflecting mainly the portion of earnings/losses corresponding to the participation of minority shareholders in the subsidiaries Alusa, Indeco, Indalum and Cedsa) was a negative Ch$737 million in 1Q07 compared to the negative Ch$407 million in 1Q06, as a result of the addition of Cedsa, Peruplast and Tech Pak, both last consolidating along with Alusa.
Analysis by Business Unit(Exhibits 2 and 3)
Wire and Cable Revenues reached by this unit in 1Q07 amounted to Ch$103,373 million of which Ch$18,033 million came from sales of copper rod and Ch$85,340 million from sales of cables. Sales volumes rose by 8.0%, particularly of aluminum cables in Brazil and Argentina (24.9% and 196.2% respectively), copper cables in Brazil (6.6%) and the addition of Cedsa (+$4,331 million, +853 tonnes). These volumes were partially offset by reduced volumes sales of copper rod in Peru and Chile of 24.2% and 3.5%, respectively, and the fall of copper cables in Chile of 21.7%.
The cost of sales amounted to Ch$89,503 million in 1Q07, 30.3% higher than the Ch$68,695 million reported the year before. This increase was principally due to the increased volume sold and to the increased LME copper and aluminum prices which rose by 20% and 16% respectively in dollar terms, comparing quarters.
Gross Income rose by 40.7% in 1Q07, mainly due as the result of increased volumes sales of wire and the higher sales prices.
Selling, general and administrative expenses increased by 18.1%, from Ch$3,402 million to Ch$4,018 million, as a result of increased commercialization and operating activity as a result of the higher turnover, the higher costs involved in the implementation of the Sarbanes Oxley Act requirements and the consolidating expenses of Peruplast, Tech Pak and Cedsa. However, these costs were reduced as a percentage of sales, from 5.4% to 4.7% in 1Q07.
Operating income totaled Ch$9,852 million in 1Q07 against Ch$6,456 million in 1Q06, an increase of 52.3%, explained by an increase of Ch$4,055 million in cables and a decrease of Ch$659 million in copper rod.
Brass MillsRevenues in 1Q07 reached to Ch$19,696 million, 16.8% lower than the Ch$23,679 million obtained in 1Q06. This was principally due to the lower volumes sales of 33.4% with respect to 1Q06; but, was balanced in part by the higher copper price.
The costs of sales showed a decrease of 6.3% as a result of the lower volumes sales. However these costs increased from 90.0% to 101.4%, as percentage over revenues, due a higher charge in added value produced by the stocks decrease.
The gross income dropped from 10.0% to (-1.4%) explained principally by the sales of products with a cost above the market price LME (London Metal Exchange) in January and February as result of the low purchases of raw material (copper essentially).
Selling, general and administrative expenses decreased by 3.3%, from Ch$1,196 million to Ch$1,157 million. On the other hand, expenses have risen as a percentage of sales, from 5.1% to 5.9%.
Operating income was a negative Ch$1.427 million in 1Q07 against a negative Ch$1.182 million in 1Q06, due to the lower volumes sold and the eroded margins.
Flexible PackagingRevenues increased by 82.9%, from Ch$11,342 million to Ch$20,744 million including the Peruplast and Tech Pak revenues of Ch$9.194 million. Sales volumes in Chile rose by 1.5% while in Argentina dropped by 6.1%. The joined volumes sales of Peruplast and Tech Pak reached to 5,057 tonnes, being a 100.8% of the total increase with respect to the 1Q06.
The cost of sales rose by 89.2%, from Ch$9,429 million to Ch$17,840 million. These costs include Peruplast and Tech Pak (+Ch$7,802 million). In addition, as a percentage of sales, costs increased from 83.1% to 86.0%.
The gross income increased by 51.8% from Ch$1,913 million to Ch$2,904 million. However, as percentage over revenues, the margin decreased from 16.9% to 14.0%.
Selling, general and administrative expenses rose to Ch$1,401 million higher than the Ch$622 million of 1Q07 (an increase of 125.2%), $709 million of these costs is due to Peruplast and Tech Pak consolidating expenses. As a percentage of sales, these expenses also increased, from 5.5% to 6.8% in 1Q07.
Operating income for 1Q07 for this unit was Ch$1,503 million, against Ch$1,291 million in 1Q06.
Aluminum ProfilesRevenues in 1Q07 increased by 7.0% compared to 1Q06, from Ch$7,987 million to Ch$8,546 million. This is explained by a positive price effect of Ch$1,107 million and a negative volume effect of $549 million.
The cost of sales rose by 7.2%, from Ch$6,382 million to Ch$6,844million, as a result of the increase in the average price of the raw material (average price of aluminum in 1Q07 was 16% higher in dollar terms than in 1Q06).
The gross income decreases as a proportion of sales, from 20.1% to 19.9%, and increased by 6.0%, from Ch$1,605 million in 1Q06 to Ch$1,702 million in 1Q07.
Selling, general and administrative expenses increased by 18.1%, from Ch$766 million to Ch$905 million due to the greater turnover. Correspondingly, as a percentage of sales, these changed from 9.6% to 10.6% in 1Q07.
The operating income for 1Q07 was Ch$797 million, 5.0% lower than the Ch$839 million of 1Q06.
Balance Sheet Analysis(Exhibit 4)
Assets The Company's assets at March 31, 2007 amounted to Ch$457,180million, an increase over the Ch$389,598 at March 31, 2006.
Current Assets
Amounted to Ch$256,964 million, 30.2% higher than the value obtained in March 2006, mainly explained to higher accounts receivable (Ch$29,392 million) and inventories (Ch$11,065 million) -as a result of the addition of new companies and the higher price of raw materials-, and to a slighter degree, an increase cash (Ch$10,490 million) and Prepaid expenses and other current assets (Ch$8,495 million).
Fixed Assets
Amounted to Ch$166,009 million, a net increase of Ch$16,932 million over 1Q06 (Ch$149,076 million), mainly due to the effect of the acquisition of fixed assets (Ch$4,911 million) offset by depreciation of the period of Ch$34,450 million.
Other Assets
Amounted to Ch$34,207 million, a 20.6% decrease (-Ch$8,892 million) from 1Q06, mainly due to the consolidation of the related companies investments accounts of Peruplast and Tech Pak.
Liabilities Total liabilities at March 31, 2007 amounted to Ch$169,101 million, 6.3% more than at March 2006.
Bank Debt
Amounted to Ch$71,558 million at March 2007, representing an increase of 1.9% (Ch$1,336 million) compared the same date of the previous year. This reflects greater borrowings by Madeco group companies to finance their greater working capital needs due to the higher prices of raw materials.
On June 5, 2006, Madeco signed a US$50 million 5-yearclub deal. Approximately US$12 million of the proceeds were used to prepay debts with Quiñenco. Another US$13 million was used to repay a bridging loan that BBVA had granted to the Company related to the capital increase. The other US$25 million was used for working capital. As of December 31, the first installment of this loan (US$4 million) has been repaid and 2 installments totaling US$8 million prepaid. Furthermore, on March 31, 4 installments for US$16 million, corresponding to the 100% of the short term component of the club deal, were paid.
Bonds
Bonds payable amounted to Ch$25,118 million at March 2007, corresponding to the D Series whose last repayment matures in December 2011. The bonds outstanding reduced by 14.8% with respect to the year before due to amortization. These bonds are payable semi-annually with respect to principal and interest (at UF + 5% per annum).
Shareholders' Equity The total outstanding at March 31, 2007 was Ch$260,047 million, which represents a 18.1% increase over March 2006.
Paid Capital
Amounted to Ch$264,072 million at March 2007, which compares positively with Ch$256,105 million at March 2005, due to the subscription on the Santiago Stock Exchange of 192,802,758 shares, equivalent to all the shares remaining issued and registered on October 17, 2005. The Company received a total of approximately Ch$9,351 million (historic value) from the transaction.
Share Premium
Amounted to Ch$40,170, just below Ch$40,204 at March 2006.
Other Reserves
Remained constant at Ch$169 with respect 1Q06.
Accumulated Losses
Amounted to Ch$51,456 million at March 2007 compared to a loss of Ch$82,060 million at March 2005, following the positive result for 2006.
For further information contact:
Pablo M. Araya
Investor Relations
Tel. : (56 2) 520-1380
Fax : (56 2) 520-1545
E-mail : ir@madeco.cl
Web Site : www.madeco.cl
***************
Madeco, previously Manufacturas de Cobre MADECO S.A., was incorporated in 1944 as an open corporation under the laws of the Republic of Chile, and today has operations in Chile, Brazil, Peru and Argentina. Madeco is a Latin American leader in the manufacture of finished and semi-finished products in copper, copper alloys and aluminum. The Company is also a leader in the production of flexible packaging used in packing mass consumption products like foods, sweets and cosmetics.
Readers are warned not to place too much reliance on the future declarations contained in the above text, which are based on the position today. The Company is under no obligation to announce publicly the results of revisions to those declarations about the future which might be made to reflect events or circumstances after today including, but without limitation, changes in the Company's strategy or in its capital expenses, or to reflect the occurrence of unforeseen events.
(Three Months Ended March-07) | |||||||||||
Ch$ millions | US$ millions (1) | ||||||||||
YTD March 06 | YTD March 07 | % Change | YTD March 06 | YTD March 07 | % Change | ||||||
Revenues | 121,563 | 152,359 | 25.3% | 231.0 | 282.6 | 22.3% | |||||
COGS | (105,809) | (134,153) | 26.8% | (201.1) | (248.8) | 23.7% | |||||
Gross Income | 15,754 | 18,206 | 15.6% | 29.9 | 33.8 | 12.8% | |||||
SG&A | (5,986) | (7,481) | 25.0% | (11.4) | (13.9) | 22.0% | |||||
Operating Income | 9,768 | 10,725 | 9.8% | 18.6 | 19.9 | 7.1% | |||||
Financial Income | 248 | 573 | 130.6% | 0.5 | 1.1 | 125.1% | |||||
Equity in Earning (Losses) of Related Companies | 161 | 4 | -97.7% | 0.3 | 0.0 | -97.8% | |||||
Other non-Operating Income | 348 | 640 | 83.8% | 0.7 | 1.2 | 79.4% | |||||
Financial Expenses | (2,391) | (3,078) | 28.7% | (4.5) | (5.7) | 25.6% | |||||
Positive Goodwill Amortization | (436) | (438) | 0.3% | (0.8) | (0.8) | -2.1% | |||||
Other non-Operating Expenses | (562) | (590) | 5.1% | (1.1) | (1.1) | 2.5% | |||||
Price-level Restatement | 1,719 | 744 | -56.7% | 3.3 | 1.4 | -57.8% | |||||
Non-Operating Results | (912) | (2,145) | 135.3% | (1.7) | (4.0) | 129.6% | |||||
Income (Loss) Before Income Taxes | 8,857 | 8,580 | -3.1% | 16.8 | 15.9 | -5.5% | |||||
Income Tax | (1,831) | (1,288) | -29.7% | (3.5) | (2.4) | -31.4% | |||||
Minority Interest | (407) | (737) | 81.2% | (0.8) | (1.4) | 76.8% | |||||
Negative Goodwill Amortization | 7 | 8 | 15.1% | 0.0 | 0.0 | 12.3% | |||||
Net Income (Loss) | 6,625 | 6,564 | -0.9% | 12.6 | 12.2 | -3.3% | |||||
Gross Margin | 13.0% | 11.9% | - | 13.0% | 11.9% | - | |||||
SG&A / Sales | 4.9% | 4.9% | - | 4.9% | 4.9% | - | |||||
Operating Margin | 8.0% | 7.0% | - | 8.0% | 7.0% | - | |||||
1 Exchange rate on March-07 2007 US$1.00 = 539.21 | |||||||||||
Exchange rate on March-07 2006 US$1.00 = 526.18 |
Exhibit 2: Operating Results by Business Unit in Ch$ millions | ||||||
(Three Months Ended March-07) | ||||||
YTD March 06 | ||||||
Ch$ million | Copper rod | Wire and Cable | Brass Mills | Flexible Packaging | Aluminum Profiles | Total |
Revenues | 17,418 | 61,137 | 23,679 | 11,342 | 7,987 | 121,563 |
COGS | (16,391) | (52,306) | (21,301) | (9,429) | (6,382) | (105,809) |
Gross Income | 1,027 | 8,831 | 2,378 | 1,913 | 1,605 | 15,754 |
SG&A | (72) | (3,330) | (1,196) | (622) | (766) | (5,986) |
Operating Income | 955 | 5,501 | 1,182 | 1,291 | 839 | 9,768 |
EBITDA | 993 | 8,304 | 1,820 | 1,909 | 1,094 | 14,120 |
Gross Margin | 5.9% | 14.4% | 10.0% | 16.9% | 20.1% | 13.0% |
% sales | 0.4% | 5.4% | 5.1% | 5.5% | 9.6% | 4.9% |
EBITDA Margin | 5.7% | 13.6% | 7.7% | 16.8% | 13.7% | 11.6% |
Segment Contribution |
|
|
|
|
|
|
% Revenues | 14.3% | 50.3% | 19.5% | 9.3% | 6.6% | 100.0% |
% EBITDA | 7.0% | 58.8% | 12.9% | 13.5% | 7.7% | 100.0% |
YTD March 07 | ||||||
Ch$ million | Copper rod | Wire and Cable | Brass Mills | Flexible Packaging | Aluminum Profiles | Total |
Revenues | 18,033 | 85,340 | 19,696 | 20,744 | 8,546 | 152,359 |
COGS | (17,688) | (71,815) | (19,966) | (17,840) | (6,844) | (134,153) |
Gross Income | 345 | 13,525 | (270) | 2,904 | 1,702 | 18,206 |
SG&A | (49) | (3,969) | (1,157) | (1,401) | (905) | (7,481) |
Operating Income | 296 | 9,556 | (1,427) | 1,503 | 797 | 10,725 |
EBITDA | 331 | 12,232 | (810) | 2,755 | 1,074 | 15,582 |
Gross Margin | 1.9% | 15.8% | -1.4% | 14.0% | 19.9% | 11.9% |
% sales | 0.3% | 4.7% | 5.9% | 6.8% | 10.6% | 4.9% |
EBITDA Margin | 1.8% | 14.3% | -4.1% | 13.3% | 12.6% | 10.2% |
Segment Contribution |
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|
|
% Revenues | 11.8% | 56.0% | 12.9% | 13.6% | 5.6% | 100.0% |
% EBITDA | 2.1% | 78.5% | -5.2% | 17.7% | 6.9% | 100.0% |
2006 versus 2007 | ||||||
% change | Copper rod | Wire and Cable | Brass Mills | Flexible Packaging | Aluminum Profiles | Total |
Revenues | 3.5% | 39.6% | -16.8% | 82.9% | 7.0% | 25.3% |
COGS | 7.9% | 37.3% | -6.3% | 89.2% | 7.2% | 26.8% |
Gross Income | -66.4% | 53.2% | -111.4% | 51.8% | 6.0% | 15.6% |
SG&A | -31.9% | 19.2% | -3.3% | 125.2% | 18.1% | 25.0% |
Operating Income | -69.0% | 73.7% | -220.7% | 16.4% | -5.0% | 9.8% |
EBITDA | -66.7% | 47.3% | -144.5% | 44.3% | -1.8% | 10.4% |
Exhibit 3: Operating Results by Business Unit and Country in Ch$ millions | |||||||||||||||
(Three Months Ended March-07) | |||||||||||||||
Year to Date 2006 | Year to Date 2007 | ||||||||||||||
(Ch$ million) | (Ch$ million) | ||||||||||||||
Chile | Peru | Interco | COPPER ROD | Chile | Peru | Interco | COPPER ROD | ||||||||
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Tons (Thrid parties) | 2,794 | 3,445 | 0 | 6,239 | 2,696 | 2,613 | 0 | 5,309 | |||||||
Tons (Intercompany) | 2,848 | 0 | (2,848) | 0 | 1,723 | 0 | (1,723) | 0 | |||||||
Tons (Total) | 5,642 | 3,445 | (2,848) | 6,239 | 4,419 | 2,613 | (1,723) | 5,309 | |||||||
|
| ||||||||||||||
Revenues (Thrid parties) | 7,807 | 9,611 | 0 | 17,418 | 9,073 | 8,960 | 0 | 18,033 | |||||||
Revenues (Intercompany) | 8,020 | 0 | (8,020) | 0 | 5,846 | 0 | (5,846) | 0 | |||||||
Total revenues | 15,827 | 9,611 | (8,020) | 17,418 | 14,919 | 8,960 | (5,846) | 18,033 | |||||||
COGS | (15,071) | (9,099) | 7,779 | (16,391) | (14,686) | (8,968) | 5,966 | (17,688) | |||||||
Gross Income | 756 | 512 | (241) | 1,027 | 233 | (8) | 120 | 345 | |||||||
SG&A | 0 | (72) | 0 | (72) | 0 | (49) | 0 | (49) | |||||||
Operating Income | 756 | 440 | (241) | 955 | 233 | (57) | 120 | 296 | |||||||
EBITDA | 791 | 441 |
|
|
| (239) | 993 | 269 | (57) |
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| 119 | 331 |
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Gross Margin | 4.8% | 5.3% | 5.9% | 1.6% | -0.1% | 1.9% | |||||||||
EBITDA Margin | 10.1% | 4.6% | 5.7% | 3.0% | -0.6% | 1.8% | |||||||||
Chile | Brazil | Optical Fiber | Argentina | Peru | Interco | WIRE & CABLE | Chile | Brazil | Optical Fiber | Argentina | Peru | Colombia | Interco | WIRE & CABLE | |
|
| ||||||||||||||
Tons (Thrid parties) | 3,009 | 7,876 | 0 | 994 | 3,534 | 0 | 15,413 | 2,365 | 8,836 | 0 | 2,157 | 3,863 | 853 | 0 | 18,074 |
Tons (Intercompany) | 138 | 309 | 0 | 64 | 0 | (511) | 0 | 32 | 189 | 0 | 253 | 2 | 0 | (476) | 0 |
Tons (Total) | 3,147 | 8,185 | 0 | 1,058 | 3,534 | (511) | 15,413 | 2,397 | 9,025 | 0 | 2,410 | 3,865 | 853 | (476) | 18,074 |
Kms. | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 821 | 0 | 0 | 0 | 0 | 821 |
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| ||||||||||||||
Revenues (Thrid parties) | 12,423 | 30,395 | 452 | 2,636 | 15,231 | 0 | 61,137 | 12,430 | 40,623 | 591 | 5,980 | 21,385 | 4,331 | 0 | 85,340 |
Revenues (Intercompany) | 731 | 987 | 0 | 103 | 0 | (1,821) | 0 | 369 | 639 | 0 | 618 | 2 | 0 | (1,628) | 0 |
Total revenues | 13,154 | 31,382 | 452 | 2,739 | 15,231 | (1,821) | 61,137 | 12,799 | 41,262 | 591 | 6,598 | 21,387 | 4,331 | (1,628) | 85,340 |
COGS | (11,871) | (26,257) | (394) | (2,276) | (12,603) | 1,095 | (52,306) | (10,983) | (34,706) | (561) | (5,683) | (17,852) | (3,663) | 1,633 | (71,815) |
Gross Income | 1,283 | 5,125 | 58 | 463 | 2,628 | (726) | 8,831 | 1,816 | 6,556 | 30 | 915 | 3,535 | 668 | 5 | 13,525 |
SG&A | (528) | (1,810) | 1 | (142) | (601) | (250) | (3,330) | (513) | (2,038) | (79) | (261) | (560) | (221) | (297) | (3,969) |
Operating Income | 755 | 3,315 | 59 | 321 | 2,027 | (976) | 5,501 | 1,303 | 4,518 | (49) | 654 | 2,975 | 447 | (292) | 9,556 |
EBITDA | 1,101 | 4,514 | 105 | 337 | 2,247 | 0 | 8,304 | 1,652 | 5,645 | (3) | 731 | 3,201 | 503 | 503 | 12,232 |
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Gross Margin | 9.8% | 16.3% | 12.8% | 16.9% | 17.3% | 14.4% | 14.2% | 15.9% | 13.9% | 16.5% | 15.4% | 15.8% | |||
EBITDA Margin | 8.9% | 14.9% | 23.2% | 12.8% | 14.8% | 13.6% | 13.3% | 13.9% | -0.5% | 12.2% | 15.0% | 11.6% | 14.3% | ||
Chile | Argentina | Coin | - | - | Interco | BRASS MILLS | Chile | Argentina | Coin | - | - | - | Interco | BRASS MILLS | |
Tons (Thrid parties) | 6,147 | 697 | 395 | 0 | 7,239 | 4,184 | 600 | 37 | 0 | 4,821 | |||||
Tons (Intercompany) | 526 | 0 | 0 | (526) | 0 | 280 | 9 | 0 | (289) | 0 | |||||
Tons (Total) | 6,673 | 697 | 395 | (526) | 7,239 | 4,464 | 609 | 37 | (289) | 4,821 | |||||
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| ||||||||||||||
Revenues (Thrid parties) | 19,914 | 2,291 | 1,474 | 0 | 23,679 | 15,862 | 2,613 | 1,221 | 0 | 19,696 | |||||
Revenues (Intercompany) | 3,062 | 0 | 809 | (3,871) | 0 | 2,021 | 40 | 73 | (2,134) | 0 | |||||
Total revenues | 22,976 | 2,291 | 2,283 | (3,871) | 23,679 | 17,883 | 2,653 | 1,294 | (2,134) | 19,696 | |||||
COGS | (21,070) | (1,805) | (2,110) | 3,684 | (21,301) | (18,662) | (2,506) | (945) | 2,147 | (19,966) | |||||
Gross Income | 1,906 | 486 | 173 | (187) | 2,378 | (779) | 147 | 349 | 13 | (270) | |||||
SG&A | (867) | (165) | (96) | (68) | (1,196) | (793) | (188) | (86) | (90) | (1,157) | |||||
Operating Income | 1,039 | 321 | 77 | (255) | 1,182 | (1,572) | (41) | 263 | (77) | (1,427) | |||||
EBITDA | 1,571 | 381 | 147 |
|
| (279) | 1,820 | (1,107) | 57 | 328 |
|
|
| (88) | (810) |
|
| ||||||||||||||
Gross Margin | 8.3% | 21.2% | 7.6% | 10.0% | -4.4% | 5.5% | 27.0% | -1.4% | |||||||
EBITDA Margin | 7.9% | 16.6% | 10.0% | 7.7% | -7.0% | 2.2% | 26.9% | -4.1% | |||||||
Chile | Argentina | Peru | - | - | Interco | F. PACKAGING | Chile | Argentina | Peru | - | - | - | Interco | F. PACKAGING | |
Tons (Thrid parties) | 2,480 | 1,349 | - | 0 | 3,829 | 2,518 | 1,267 | 5,057 | 0 | 8,842 | |||||
Tons (Intercompany) | 0 | 0 | - | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Tons (Total) | 2,480 | 1,349 | - | 0 | 3,829 | 2,518 | 1,267 | 5,057 | 0 | 8,842 | |||||
|
| ||||||||||||||
Revenues (Thrid parties) | 7,710 | 3,631 | - | 1 | 11,342 | 7,934 | 3,616 | 9,194 | 0 | 20,744 | |||||
Revenues (Intercompany) | 0 | 0 | - | 0 | 0 | 0 | 0 | 1,441 | (1,441) | 0 | |||||
Total revenues | 7,710 | 3,631 | - | 1 | 11,342 | 7,934 | 3,616 | 10,635 | (1,441) | 20,744 | |||||
COGS | (6,224) | (3,205) | - | 0 | (9,429) | (6,673) | (3,365) | (9,242) | 1,440 | (17,840) | |||||
Gross Income | 1,486 | 426 | - | 1 | 1,913 | 1,261 | 251 | 1,393 | (1) | 2,904 | |||||
SG&A | (474) | (108) | - | (40) | (622) | (460) | (185) | (709) | (47) | (1,401) | |||||
Operating Income | 1,012 | 318 | - | (39) | 1,291 | 801 | 66 | 684 | (48) | 1,503 | |||||
EBITDA | 1,432 | 519 | - |
|
| (42) | 1,909 | 1,231 | 291 | 1,281 |
|
|
| (48) | 2,755 |
|
| ||||||||||||||
Gross Margin | 19.3% | 11.7% | - | 16.9% | 15.9% | 6.9% | 13.1% | 14.0% | |||||||
EBITDA Margin | 18.6% | 14.3% | 16.8% | 15.5% | 8.0% | 13.9% | 13.3% | ||||||||
PROFILES | PROFILES | ||||||||||||||
Tons (Thrid parties) | 3,113 | 2,899 | |||||||||||||
Tons (Intercompany) | 0 | 0 | |||||||||||||
Tons (Total) | 3,113 | 2,899 | |||||||||||||
|
| ||||||||||||||
Revenues (Thrid parties) | 7,987 | 8,546 | |||||||||||||
Revenues (Intercompany) | 0 | 0 | |||||||||||||
Total revenues | 7,987 | 8,546 | |||||||||||||
COGS | (6,382) | (6,844) | |||||||||||||
Gross Income | 1,605 | 1,702 | |||||||||||||
SG&A | (766) | (905) | |||||||||||||
Operating Income | 839 | 797 | |||||||||||||
EBITDA |
|
|
|
|
|
| 1,094 |
|
|
|
|
|
|
| 1,074 |
|
| ||||||||||||||
Gross Margin | 20.1% | 19.9% | |||||||||||||
EBITDA Margin | 13.7% | 12.6% |
Exhibit 4: Consolidated Balance Sheet | ||||||
Ch$ millions | US$ millions (1) | |||||
YTD March 06 | YTD March 07 | YTD March 06 | YTD March 07 | |||
Cash | 3,936 | 14,425 | 7.5 | 26.8 | ||
Time deposits and marketable securities | 695 | 103 | 1.3 | 0.2 | ||
Accounts receivable | 83,258 | 113,755 | 158.2 | 211.0 | ||
Accounts receivable from related companies | 2,212 | 1,107 | 4.2 | 2.1 | ||
Inventories | 88,657 | 99,722 | 168.5 | 184.9 | ||
Recoverable taxes | 8,869 | 9,561 | 16.9 | 17.7 | ||
Prepaid expenses and other current assets | 9,796 | 18,291 | 18.6 | 33.9 | ||
Total current assets | 197,423 | 256,964 | 375.2 | 476.6 | ||
Property, plant and equipment (net) | 149,076 | 166,009 | 283.3 | 307.9 | ||
Investments | 11,671 | 5,841 | 22.2 | 10.8 | ||
Goodwill (net) | 18,515 | 17,549 | 35.2 | 32.5 | ||
Long-term receivables | 311 | 371 | 0.6 | 0.7 | ||
Other | 12,602 | 10,446 | 24.0 | 19.4 | ||
Total other assets | 43,099 | 34,207 | 81.9 | 63.4 | ||
Total assets | 389,598 | 457,180 | 740.4 | 847.9 | ||
Short-term bank borrowings | 38,362 | 18,880 | 72.9 | 35.0 | ||
Current portion of long-term bank and other debt | 3,806 | 15,053 | 7.2 | 27.9 | ||
Current portion of bonds payable | 4,713 | 4,852 | 9.0 | 9.0 | ||
Current portion of long-term liabilities | 422 | 1,843 | 0.8 | 3.4 | ||
Dividends payable | 3 | 241 | 0.0 | 0.4 | ||
Accounts payable | 25,192 | 35,470 | 47.9 | 65.8 | ||
Notes payable | 1,124 | 1,430 | 2.1 | 2.7 | ||
Other payables | 446 | 97 | 0.8 | 0.2 | ||
Notes and accounts payable to related companies | 8,779 | 409 | 16.7 | 0.8 | ||
Accrued expenses | 6,830 | 7,904 | 13.0 | 14.7 | ||
Withholdings payable | 1,582 | 2,170 | 3.0 | 4.0 | ||
Deferred income | 1,151 | 5,026 | 2.2 | 9.3 | ||
Income taxes | 0 | 0 | - | - | ||
Other current liabilities | 1,447 | 2,252 | 2.7 | 4.2 | ||
Total current liabilities | 93,856 | 95,626 | 178.4 | 177.3 | ||
Long-term bank and other debt | 34,912 | 47,691 | 66.3 | 88.4 | ||
Bonds payable | 24,780 | 20,266 | 47.1 | 37.6 | ||
Accrued expenses | 4,843 | 5,527 | 9.2 | 10.3 | ||
Total long-term liabilities | 64,535 | 73,484 | 122.6 | 136.3 | ||
Minority interest | 10,931 | 28,023 | 20.8 | 52.0 | ||
Common stock (2) | 255,337 | 264,601 | 485.3 | 490.7 | ||
Share premium | 40,204 | 40,170 | 76.4 | 74.5 | ||
Reserves | 169 | 169 | 0.3 | 0.3 | ||
Retained earnings | (75,435) | (44,892) | (143.4) | (83.3) | ||
Total shareholders' equity | 220,276 | 260,047 | 418.6 | 482.3 | ||
|
| |||||
Total liabilities and shareholders' equity | 389,598 | 457,180 | 740.4 | 847.9 | ||
1 Exchange rate on March-07 2007 US$1.00 = 539.21 | ||||||
Exchange rate on March-07 2006 US$1.00 = 526.18 | ||||||
2 5,348,390,129 shares authorized and outstanding, without nominal (par value) |
Ch$ millions | US$ millions (1) | |||||
YTD March 06 | YTD March 07 | YTD March 06 | YTD March 07 | |||
Cash received from customers | 127,640 | 174,385 | 242.6 | 323.4 | ||
Financial income received | 648 | 759 | 1.2 | 1.4 | ||
Dividends and other distributions | 52 | - | 0.1 | - | ||
Other incomes | 1,840 | 1,428 | 3.5 | 2.6 | ||
Payments to suppliers and employees | (143,032) | (150,538) | (271.8) | (279.2) | ||
Interests paid | (2,159) | (1,764) | (4.1) | (3.3) | ||
Income taxes paid | (631) | (1,243) | (1.2) | (2.3) | ||
Other expenses | (163) | (1,264) | (0.3) | (2.3) | ||
Added Value Tax and others | (1,273) | (1,192) | (2.4) | (2.2) | ||
Net cash flow from operating activities | (17,077) | 20,569 | (32.5) | 38.1 | ||
Sale of Property, Plant and Equipment | 771 | 230 | 1.5 | 0.4 | ||
Sale of permanent investments | - | - | - | - | ||
Sale of other investments | - | - | - | - | ||
Other proceeds from investments | 82 | 3,846 | 0.2 | 7.1 | ||
Acquisition of fixed assets | (2,655) | (4,793) | (5.0) | (8.9) | ||
Permanent investments | (4) | (6,646) | (0.0) | (12.3) | ||
Other disbursements | - | - | - | - | ||
Net cash flow used in investing activities | (1,806) | (7,363) | (3.4) | (13.7) | ||
Issuance of shares | - | 323 | - | 0.6 | ||
Loans obtained | 31,909 | 24,316 | 60.6 | 45.1 | ||
Registered loans from related companies | - | - | - | - | ||
Other financing sources | - | - | - | - | ||
Dividends paid | (67) | (207) | (0.1) | (0.4) | ||
Repayments of bank borrowings | (14,885) | (34,325) | (28.3) | (63.7) | ||
Repayments of bonds | - | - | - | - | ||
Payment of expenses related to shares issuance | - | - | - | - | ||
Payment loans documented from related companies | - | - | - | - | ||
Others | - | - | - | - | ||
Net cash flow provided by financing activities | 16,957 | (9,893) | 32.2 | (18.3) | ||
Net cash flow for the period | (1,925) | 3,313 | (3.7) | 6.1 | ||
Effect of price-level restatements on cash and cash equivalents | 240 | 130 | 0.5 | 0.2 | ||
Net increase in cash and cash equivalents | (1,685) | 3,444 | (3.2) | 6.4 | ||
Cash and cash equivalents at the beginning of year | 7,977 | 17,580 | 15.2 | 32.6 | ||
Cash and cash equivalents at end of the period | 6,292 | 21,024 | 12.0 | 39.0 | ||
_____________________ | ||||||
1 Exchange rate on March-07 2007 US$1.00 = 539.21 | ||||||
Exchange rate on March-07 2006 US$1.00 = 526.18 |