FOR IMMEDIATE RELEASE
MADECO S.A. ANNOUNCES
CONSOLIDATED RESULTS FOR THE SECOND QUARTER OF 2007
(Santiago, Chile, August 3, 2007) Madeco S.A. (“Madeco”) (NYSE ticker: MAD) today announced its consolidated financial results in Chilean GAAP for the first quarter ended June 30, 2007. All figures are expressed in Chilean pesos as of June 30, 2007. Translations to US dollars made in this report are based on the exchange rate on that date (US$1.00 = Ch$526.86) and UF1.00= Ch$ 18,624.17 as of June 30, 2007.
Madeco Highlights
- For the second quarter of the year, the Company reported net income of Ch$6,301 million, 54.0% less than the Ch$13,708 million reported for same period of 2006. Operating income decreased from Ch$21,726 million to Ch$11,752 million due to higher operational costs and the lack of extraordinary operational gains obtained in 2006 (this extraordinary gain, that was estimated at Ch$6,500 million, was explained by the sharp rise in the copper price in 2Q06). The charge for income taxes decreased by Ch$959 million. The charges related to minority interest and others increased by Ch$508 million. These lower utilities were offset by a lower charge for the non-operating income of Ch$2.119 million.
- Revenues in 2Q07 increased by 1.8% compared to 2Q06, reaching Ch$162,969 million. This increase is explained by sales associated with the Company’s acquisitions in the beginning of 2007, as well as increased prices of raw materials (7.1% and 4.1% for copper and aluminum, compared to 2006 respectively). In spite of these positive effects, the Brass Mills unit and the copper rod division showed significant reductions in their revenues of 23.3% and 20.2%, respectively, compared to 2Q06.
- Operating income in 2Q07 decreased by 45.9% reaching Ch$11,752 million. This was mostly attributable to a decline of 31.9% in gross income (explained mostly by higher energy and operational costs and increased raw material prices), an increase of 7.9% in selling, general and administrative expenses, lack of the extraordinary operational gain mentioned above and lower margins obtained by the Brass Mills Unit. The decrease in operating income was partially offset by higher sales volumes compared to the same period of 2006.
- As of the second quarter of 2007, cash and cash equivalents was Ch$14,762 million compared to Ch$7,470 million in 2Q06. This is explained by higher net cash flow from operating activities and higher initial cash level, partially offset by lower cash flow from financing and higher in investing activities.
- As was communicated after the Annual and Extraordinary Shareholders’ Meetings (both celebrated on April 24, 2007) the Company changed its dividend policy of net income distribution from 50% to 30% and absorbed its accumulated losses by a charge to the Company’s share capital. This loss absorption would allow the Company to pay dividends in 2008.
- Highlights of the Income Statement (Exhibit 1 and 2)
Revenues Revenues in 2Q07 were Ch$162,969 million, a 1.8% increase over the same period of the previous year. The increase in consolidated revenues is basically explained by higher copper and aluminum prices during 2007 and the contribution from the new consolidating companies (Peruplast, Tech Pak y Cedsa) which have an addition effect of Ch$17,789 million. Sales volumes showed an increase of 3,232 tonnes (includes volumes of the new consolidating companies), 8.7% above 2Q06 with an effect on sales of Ch$2,899 million, in spite of lower volumes sold in the Brass Mills unit and copper rod division (2,005 tonnes and 2,321 tonnes respectively).
Gross Income Gross income in 2Q07 was Ch$19,996 million, 31.9% lower than the Ch$29,366 million reported in 2Q06 as a result of a 9.4% increase in cost of sales and a 1.8% increase in revenues. The increase in the cost of sales is basically due to the higher cost of principal raw materials, like copper and aluminum. The rise in the average copper price (LME) in the second quarter of 2007 was 7.1% in dollar terms (from US$7,210 to US$7,642 per tonne) compared to the average price in the same quarter of 2006; in the case aluminum, the rise was 4.1%, also in dollar terms (from US$2,654 to US$2,762 per tonne).
Operating Income Operating income for 2Q07 amounted to Ch$11,752 million, 45.9% lower than the Ch$21,726 million obtained in the same period the year before. The reduction in operating income is explained by a decrease of 31.9% in gross income, the lack of extraordinary operational gains mentioned above, lower margins in the Brass Mills unit and an increase of 7.9% in selling, general and administrative expenses as a result of the higher turnover, costs involved in the implementation of the Sarbanes Oxley Act and the consolidating expenses of Peruplast, Tech Pak and Cedsa.
Non-Operating Result The Company’s non-operating losses for 2Q07 amounted to Ch$2,975 million, 41.6% lower than the losses of Ch$5,094 million reported in 2Q06. This is basically due to a profit of Ch$188 million in foreign exchange differences and price-level restatement results compared to the loss of Ch$1,626 million of the year before. The higher gain from exchange differences in the 2Q07 is principally the result of the higher appreciation of the Brazilian Real (BRL) compared to 2Q06, as well as the appreciation of the Colombian Peso. In addition to this effect, the net charge for interest expense decreased during this quarter, due to lower expenses related to Company’s bonds (that were reduced in 2007), and higher income from interest income.
Income Tax During 2Q07, income tax amounted to Ch$1,564 million, compared to Ch$2,523 million in the same period of the year before, as a result of lower profits before taxes during the period.
Minority Interest The Company’s minority interest charges (reflecting mainly the portion of earnings/losses corresponding to the participation of minority shareholders in the subsidiaries Alusa, Indeco, Indalum and Cedsa) amounted to Ch$924 million in 2Q07 compared to Ch$405 million in 2Q06, as a result of the addition of Cedsa, Peruplast and Tech Pak (Peruplast and Tech Pak consolidate with Alusa).
- Analysis by Business Unit (Exhibits 3 to 6)
The cost of sales amounted to Ch$88,494 million in 2Q07, 7.3% higher than the Ch$82,451 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 7.1% and 4.1% respectively, in dollar terms.
Gross Income decreased by 29.6% from Ch$18,232 to Ch$12,840 in 2Q07, as the result of higher prices of raw materials, higher operational costs and the lack of the extraordinary gains compared to 2Q06.
Selling, general and administrative expenses rose by 4.1% in 2Q07 (from Ch$4,606 million to Ch$4,799 million), as the result of the increased sales activity, the higher costs involved in the implementation of the Sarbanes Oxley Act and the consolidating expenses related to Cedsa.
Operating income totaled Ch$8,041 million in 2Q07 compared to Ch$13,626 million in 2Q06, a decrease of 41.0%, explained by lower gross income and higher selling, general and administrative expenses in cables and copper rod divisions.
Brass Mills Revenues in 2Q07 reached to Ch$29,168 million, 23.3% lower than the Ch$38,038 million reported in 2Q06. This was due to a reduction in volumes sold in the Chilean and Argentinean markets, as well as a reduction in export sales. These effects were partially offset by the higher price of copper in 2Q07 compared to 2Q06.
Cost of sales showed a decrease of 10.5% as a result of the lower sales volume. However, these costs increased from 80.8% to 94.3%, as percentage of sales, due to higher prices of energy and operational costs, as well as higher prices of raw materials.
Gross income was reduced by 77.4% in 2Q07, explained principally by lower sales, higher cost of sales (in terms of percentage of sales) and the lack of the extraordinary gain observed in 2Q06 as a result of the abrupt rise in copper prices.
Selling, general and administrative expenses decreased by 7.4%, from Ch$1,419 million to Ch$1,314 million. On the other hand, as a percentage of sales expenses increased from 3.7% to 4.5%.
Operating income amounted to Ch$337 million in 2Q07 compared to Ch$5,879 million in 2Q06, due to the lower sales volume and lower margins.
Flexible Packaging Revenues increased by 93.0%, from Ch$11,887 million to Ch$22,947 million, including the revenues of Peruplast and Tech Pak subsidiaries of Ch$11,975 million. Sales volume increased by 157.2% in 2Q07 (Chile rose by 5.8% and Argentina by 6.1%). The sales volumes of Peruplast and Tech Pak reached 5,910 tonnes (after eliminating inter-company sales), making up a 58.8% of the total Unit’s sales volume in 2Q07.
Cost of sales rose by 97.7%, from Ch$9,850 million to Ch$19,469 million. These costs include Peruplast and Tech Pak subsidiaries which amounted to Ch$10,116 million. In addition, as a percentage of sales, costs increased from 82.9% to 84.8%.
Gross income increased by 70.7% from Ch$2,037 million in 2Q06, mainly due to the consolidation of the Peruvian subsidiaries. However, as a percentage of sales, the margin decreased from 17.1% to 15.2%, partially explained by higher costs of energy and raw materials (aluminum, propylene, etc.) and higher labor costs in Argentina.
Selling, general and administrative expenses rose by Ch$1,114 million from Ch$763 million in 2Q06, an increase of 46.0% (the Peruvian subsidiaries represented 36.7% of the Unit’s expenses). In spite of higher expenses, as a percentage of sales, SG&A decreased from 6.4% to 4.9% in 2Q07.
Operating income in 2Q07 was Ch$2,364 million compared to Ch$1,274 million in 2Q06.
Aluminum Profiles Revenues in 2Q07 increased by 0.6% compared to 2Q06, from Ch$9,459 million to Ch$9,520 million. The increased revenues are explained by higher prices (aluminum prices in dollar terms, increased around 4.1% during the second quarter compared to 2006), in spite of lower sales volume (volumes decreased by 22.6% compared to 2Q06).
Cost of sales decreased by 2.2%, from Ch$7,658 million to Ch$7,488 million. As percentage of sales, the Unit’s costs decreased from 81.0% to 78.7%, although the Company incurred raw materials costs.
Gross income in 2Q07 increased by 12.8% compared to Ch$1,801 million in 2Q06. As a percentage of sales, the ratio increased from 19.0% to 21.3% in 2Q07.
Selling, general and administrative expenses increased by 19.7%, from Ch$854 million to Ch$1,022 million due to the higher sales activity. In addition, as a percentage of sales, expenses increased from 9.0% to 10.7% during the second quarter of 2007.
Operating income for 2Q07 was Ch$1,010 million, 6.7% higher than the Ch$947 million reported in 2Q06, due to the higher gross income, although selling, general and administrative expenses also increased which partially offset this effect.
- Balance Sheet Analysis (Exhibit 7)
Current Assets
Amounted to Ch$284,748 million, 19.6% higher than June 2006, mainly explained by higher accounts receivable (Ch$15,128 million), inventories (Ch$19,889 million, as a result of the incorporation of new companies which added Ch$14,779 million to inventories and the higher price of raw materials), and to a lesser extent, an increase in cash (Ch$8,097 million, mainly due to a higher initial cash balance and to lower needs in financing variations of working capital, as was required in 2Q06 when the price of copper suffered an abrupt change).
Fixed Assets
Amounted to Ch$167,550 million, a net increase of Ch$14,930 million over 2Q06, mainly due to the effect of the acquisition of machinery and equipment of Ch$23,957 million, an increase of Ch$8,906 in buildings and infrastructure, offset by depreciation for the period of Ch$28,996 million. The variations are mainly explained by new acquisitions, which added Ch$18,824 million to fixed assets.
Other Assets
Amounted to Ch$34,167 million, a 22.4% decrease (or -Ch$9,853 million) compared to 2Q06, mainly due to the consolidation of equity companies investments accounts of Peruplast and Tech Pak.
Liabilities Total liabilities as of June 30, 2007 amounted to Ch$195,711 million an increase of 11.8% compared to June 2006.
Bank Debt
Amounted to Ch$95,906 million at June 2007, representing an increase of 5.8% (Ch$5,232 million) compared to the previous year. This reflects mainly Alusa’s greater needs to finance the new acquisitions at the beginning of the year.
On June 5, 2006, Madeco signed a US$50 million 5-year club deal. In December 2006, the first installment of this loan (US$4 million) was repaid and 2 installments totaling US$8 million prepaid. On June 30th, 4 installments amounting to US$16 million (corresponding to the 100% of the short term component of the club deal) were paid.
Bonds
Bonds payable amounted to Ch$22,904 million as of June 2007 which correspond to the D Series whose last repayment is scheduled for December 2011. The bonds outstanding were reduced by 16.5% with respect to the prior year due to pay down in December 2006 and June 2007. These bonds are payable semi-annually (principal and interest) and bear interest of UF + 5% per annum.
Shareholders’ Equity As of June 30, 2007 shareholders’ equity was Ch$265,041 million, which represents a 6.7% increase over June 2006.
Paid Capital
Amounted to Ch$212,179 million at June 2007, which is lower than the Ch$266,226 million reported as of June 2006, due mainly to the absorption of accumulated losses, which represented a charge of Ch$51,353 million (this reduction was approved at the Extraordinary Shareholders’ Meeting held in April, 2007).
Share Premium
Amounted to Ch$40,851 million, varying slightly from the Ch$40,848 million reported in June 2006.
Other Reserves
Decreased by Ch$6,721 million from Ch$1,175 million in 2Q06, due to a lower valuation of foreign investments in accordance with the Chilean accounting norm N°64.
Accumulated Losses
Since April 24, 2007, the Company no longer has accumulated losses as was approved at the Extraordinary Shareholders’ Meeting. The previous balance was eliminated by a reduction in Paid Capital and 2006 net income.
For further information contact:
Pablo M. Araya
Investor Relations
Tel. : (56 2) 520-1380
Fax : (56 2) 520-1545
E-mail : ir@madeco.cl
Web Site : www.madeco.cl
***************
Madeco, previously Manufacturas de Cobre MADECO S.A., was incorporated in 1944 as an open corporation under the laws of the Republic of Chile, and today has operations in Chile, Brazil, Peru, Colombia and Argentina. Madeco is considered, a Latin American leader, in the manufacture of finished and semi-finished products in copper, copper alloys and aluminum. The Company is also a leader in the production of flexible packaging used in packing mass consumption products like foods, sweets and cosmetics.
Readers are warned not to place too much reliance on the future declarations contained in the above text, which are based on the position today. The Company is under no obligation to announce publicly the results of revisions to those declarations about the future which might be made to reflect events or circumstances after today including, but without limitation, changes in the Company’s strategy or in its capital expenses, or to reflect the occurrence of unforeseen events.
Exhibit 1: Consolidated Income Statement | ||||||||||
(Second Quarter) | ||||||||||
Ch$ millions | US$ millions (1) | |||||||||
2Q06 | 2Q07 | % Change | 2Q06 | 2Q07 | % Change | |||||
Revenues | 160,067 | 162,969 | 1.8% | 297 | 309 | 4.2% | ||||
COGS | (130,699) | (142,968) | 9.4% | (242) | (271) | 12.0% | ||||
Gross Income | 29,368 | 20,001 | -31.9% | 54 | 38 | -30.3% | ||||
SG&A | (7,642) | (8,249) | 7.9% | (14) | (16) | 10.5% | ||||
Operating Income | 21,726 | 11,752 | -45.9% | 40 | 22 | -44.6% | ||||
Financial income | 663 | 698 | 5.3% | 1 | 1 | 7.9% | ||||
Equity in earning (losses) of related companies | 122 | 3 | -97.7% | 0 | 0 | 270.3% | ||||
Other non-operating income | 80 | (60) | -174.8% | 0 | (0) | -176.6% | ||||
Financial expenses | (3,355) | (2,917) | -13.0% | (6) | (6) | -11.0% | ||||
Positive goodwill amortization | (452) | (426) | -5.8% | (1) | (1) | -3.5% | ||||
Other non-operating expenses | (526) | (390) | -25.8% | (1) | (1) | -24.0% | ||||
Price-level restatement | (1,626) | 118 | -107.2% | (3) | 0 | -2612.9% | ||||
Non-Operating Results | (5,094) | (2,975) | -41.6% | (9) | (6) | 53.4% | ||||
Income (Loss) before income taxes | 16,632 | 8,777 | -47.2% | 31 | 17 | -46.0% | ||||
Income tax | (2,523) | (1,564) | -38.0% | (5) | (3) | -36.5% | ||||
Minority interest | (405) | (924) | 128.2% | (1) | (2) | 133.6% | ||||
Negative goodwill amortization | 7 | 18 | N/A | 0 | 0 | N/A | ||||
Net Income (Loss) | 13,710 | 6,306 | -54.0% | 25 | 12 | -52.9% | ||||
Gross Margin | 18.3% | 12.3% | - | 18.3% | 12.3% | - | ||||
SG&A / Sales | 4.8% | 5.1% | - | 4.8% | 5.1% | - | ||||
Operating Margin | 13.6% | 7.2% | - | 13.6% | 7.2% | - | ||||
1 Exchange rate on June 30 2007 US$1.00 = 526.86 | ||||||||||
Exchange rate on June 30 2006 US$1.00 = 539.44 |
Exhibit 2: Consolidated Income Statement | ||||||||||
(Six Months Ended June-2007) | ||||||||||
Ch$ millions | US$ millions (1) | |||||||||
YTD Jun 05 | YTD Jun 06 | % Change | YTD Jun 05 | YTD Jun 06 | % Change | |||||
Revenues | 283,642 | 317,766 | 12.0% | 526 | 603 | 14.7% | ||||
COGS | (238,259) | (279,268) | 17.2% | (442) | (530) | 20.0% | ||||
Gross Income | 45,383 | 38,498 | -15.2% | 84 | 73 | -13.1% | ||||
SG&A | (13,727) | (15,849) | 15.5% | (25) | (30) | 18.2% | ||||
Operating Income | 31,656 | 22,649 | -28.5% | 59 | 43 | -26.7% | ||||
Financial income | 915 | 1,280 | 39.9% | 2 | 2 | 43.2% | ||||
Equity in earning (losses) of related companies | 286 | 7 | N/A | 1 | 0 | N/A | ||||
Other non-operating income | 434 | 591 | 36.1% | 1 | 1 | 39.4% | ||||
Financial expenses | (5,785) | (6,045) | 4.5% | (11) | (11) | 7.0% | ||||
Positive goodwill amortization | (895) | (870) | -2.8% | (2) | (2) | -0.4% | ||||
Other non-operating expenses | (1,097) | (990) | -9.8% | (2) | (2) | -7.6% | ||||
Price-level restatement | 122 | 874 | 618.6% | 0 | 2 | 635.7% | ||||
Non-Operating Results | (6,021) | (5,154) | -14.4% | (11) | (10) | 0.1% | ||||
Income (Loss) before income taxes | 25,635 | 17,495 | -31.8% | 48 | 33 | -30.1% | ||||
Income tax | (4,385) | (2,872) | -34.5% | (8) | (5) | -32.9% | ||||
Minority interest | (819) | (1,673) | 104.4% | (2) | (3) | 109.3% | ||||
Negative goodwill amortization | 14 | 26 | N/A | 0 | 0 | N/A | ||||
Net Income (Loss) | 20,445 | 12,975 | -36.5% | 38 | 25 | -35.0% | ||||
Gross Margin | 16.0% | 12.1% | - | 16.0% | 12.1% | - | ||||
SG&A / Sales | 4.8% | 5.0% | - | 4.8% | 5.0% | - | ||||
Operating Margin | 11.2% | 7.1% | - | 11.2% | 7.1% | - | ||||
1 Exchange rate on June 30 2007 US$1.00 = 526.86 | ||||||||||
Exchange rate on June 30 2006 US$1.00 = 539.44 |
Exhibit 3: EBITDA by Business Unit | ||||||||
(Second Quarter) | ||||||||
Second Quarter 2006 | ||||||||
Ch$ million | COPPER ROD | WIRE & CABLE | BRASS MILLS | F. PACKAGING | PROFILES | Total | ||
Revenues | 28,653 | 72,030 | 38,038 | 11,887 | 9,459 | 160,067 | ||
COGS | (24,217) | (58,234) | (30,740) | (9,850) | (7,658) | (130,699) | ||
Gross Income | 4,436 | 13,796 | 7,298 | 2,037 | 1,801 | 29,368 | ||
SG&A | (114) | (4,492) | (1,419) | (763) | (854) | (7,642) | ||
Operating Income | 4,322 | 9,304 | 5,879 | 1,274 | 947 | 21,726 | ||
EBITDA | 4,358 | 11,258 | 6,495 | 1,914 | 1,215 | 25,240 | ||
Gross Margin | 15.5% | 19.2% | 19.2% | 17.1% | 19.0% | 18.3% | ||
SG&A / Sales | 0.4% | 6.2% | 3.7% | 6.4% | 9.0% | 4.8% | ||
EBITDA Margin | 15.2% | 15.6% | 17.1% | 16.1% | 12.8% | 15.8% | ||
Segment Contribution | ||||||||
% Revenues | 17.9% | 45.0% | 23.8% | 7.4% | 5.9% | 100.0% | ||
% EBITDA | 17.3% | 44.6% | 25.7% | 7.6% | 4.8% | 100.0% | ||
Second Quarter 2007 | ||||||||
Ch$ million | COPPER ROD | WIRE & CABLE | BRASS MILLS | F. PACKAGING | PROFILES | Total | ||
Revenues | 18,688 | 82,646 | 29,168 | 22,947 | 9,520 | 162,969 | ||
COGS | (18,314) | (70,180) | (27,517) | (19,469) | (7,488) | (142,968) | ||
Gross Income | 374 | 12,466 | 1,651 | 3,478 | 2,032 | 20,001 | ||
SG&A | 50 | (4,849) | (1,314) | (1,114) | (1,022) | (8,249) | ||
Operating Income | 424 | 7,617 | 337 | 2,364 | 1,010 | 11,752 | ||
EBITDA | 463 | 9,396 | 936 | 3,337 | 1,301 | 15,433 | ||
Gross Margin | 2.0% | 15.1% | 5.7% | 15.2% | 21.3% | 12.3% | ||
SG&A / Sales | -0.3% | 5.9% | 4.5% | 4.9% | 10.7% | 5.1% | ||
EBITDA Margin | 2.5% | 11.4% | 3.2% | 14.5% | 13.7% | 9.5% | ||
Segment Contribution | ||||||||
% Revenues | 11.5% | 50.7% | 17.9% | 14.1% | 5.8% | 100.0% | ||
% EBITDA | 3.0% | 60.9% | 6.1% | 21.6% | 8.4% | 100.0% | ||
2007 versus 2006 | ||||||||
% change | COPPER ROD | WIRE & CABLE | BRASS MILLS | F. PACKAGING | PROFILES | Total | ||
Revenues | -34.8% | 14.7% | -23.3% | 93.0% | 0.6% | 1.8% | ||
COGS | -24.4% | 20.5% | -10.5% | 97.7% | -2.2% | 9.4% | ||
Gross Income | -91.6% | -9.6% | -77.4% | 70.7% | 12.8% | -31.9% | ||
SG&A | -143.9% | 7.9% | -7.4% | 46.0% | 19.7% | 7.9% | ||
Operating Income | -90.2% | -18.1% | -94.3% | 85.6% | 6.7% | -45.9% | ||
EBITDA | -89.4% | -16.5% | -85.6% | 74.3% | 7.1% | -38.9% |
Exhibit 4: EBITDA by Business Unit | ||||||||
(Six Months Ended June-2007) | ||||||||
YTD Jun 06 | ||||||||
Ch$ million | COPPER ROD | WIRE & CABLE | BRASS MILLS | F. PACKAGING | PROFILES | Total | ||
Revenues | 46,360 | 134,177 | 62,110 | 23,417 | 17,578 | 283,642 | ||
COGS | (40,879) | (111,406) | (52,394) | (19,435) | (14,145) | (238,259) | ||
Gross Income | 5,481 | 22,771 | 9,716 | 3,982 | 3,433 | 45,383 | ||
SG&A | (187) | (7,877) | (2,634) | (1,396) | (1,633) | (13,727) | ||
Operating Income | 5,294 | 14,894 | 7,082 | 2,586 | 1,800 | 31,656 | ||
EBITDA | 5,367 | 18,682 | 8,345 | 3,855 | 2,327 | 38,576 | ||
Gross Margin | 11.8% | 17.0% | 15.6% | 17.0% | 19.5% | 16.0% | ||
SG&A / Sales | 0.4% | 5.9% | 4.2% | 6.0% | 9.3% | 4.8% | ||
EBITDA Margin | 11.6% | 13.9% | 13.4% | 16.5% | 13.2% | 13.6% | ||
Segment Contribution | ||||||||
% Revenues | 16.3% | 47.3% | 21.9% | 8.3% | 6.2% | 100.0% | ||
% EBITDA | 13.9% | 48.4% | 21.6% | 10.0% | 6.0% | 100.0% | ||
YTD Jun 07 | ||||||||
Ch$ million | COPPER ROD | WIRE & CABLE | BRASS MILLS | F. PACKAGING | PROFILES | Total | ||
Revenues | 37,011 | 169,349 | 49,180 | 44,023 | 18,203 | 317,766 | ||
COGS | (36,285) | (143,144) | (47,803) | (37,594) | (14,442) | (279,268) | ||
Gross Income | 726 | 26,205 | 1,377 | 6,429 | 3,761 | 38,498 | ||
SG&A | 0 | (8,882) | (2,489) | (2,537) | (1,941) | (15,849) | ||
Operating Income | 726 | 17,323 | (1,112) | 3,892 | 1,820 | 22,649 | ||
EBITDA | 799 | 21,008 | 113 | 6,136 | 2,392 | 30,448 | ||
Gross Margin | 2.0% | 15.5% | 2.8% | 14.6% | 20.7% | 12.1% | ||
SG&A / Sales | 0.0% | 5.2% | 5.1% | 5.8% | 10.7% | 5.0% | ||
EBITDA Margin | 2.2% | 12.4% | 0.2% | 13.9% | 13.1% | 9.6% | ||
Segment Contribution | ||||||||
% Revenues | 11.6% | 53.3% | 15.5% | 13.9% | 5.7% | 100.0% | ||
% EBITDA | 2.6% | 69.0% | 0.4% | 20.2% | 7.9% | 100.0% | ||
2006 versus 2007 | ||||||||
% change | COPPER ROD | WIRE & CABLE | BRASS MILLS | F. PACKAGING | PROFILES | Total | ||
Revenues | -20.2% | 26.2% | -20.8% | 88.0% | 3.6% | 12.0% | ||
COGS | -11.2% | 28.5% | -8.8% | 93.4% | 2.1% | 17.2% | ||
Gross Income | -86.8% | 15.1% | -85.8% | 61.5% | 9.6% | -15.2% | ||
SG&A | -100.0% | 12.8% | -5.5% | 81.7% | 18.9% | 15.5% | ||
Operating Income | -86.3% | 16.3% | -115.7% | 50.5% | 1.1% | -28.5% | ||
EBITDA | -85.1% | 12.5% | -98.6% | 59.2% | 2.8% | -21.1% |
Exhibit 5: EBITDA by Business Unit and Country | ||||||||||||||||
(Second Quarter) | ||||||||||||||||
Second Quarter 2006 | Second Quarter 2007 | |||||||||||||||
(Ch$ million) | (Ch$ million) | |||||||||||||||
Chile | Peru | Interco. | COPPER ROD | Chile | Peru | Interco. | COPPER ROD | |||||||||
Tons (Third parties) | 2,810 | 4,130 | 0 | 6,940 | 2,281 | 2338 | 0 | 4,619 | ||||||||
Tons (Intercompany) | 3,203 | 0 | (3,203) | 0 | 3,404 | 0 | (3,404) | 0 | ||||||||
Tons (Total) | 6,013 | 4,130 | (3,203) | 6,940 | 5,685 | 2,338 | (3,404) | 4,619 | ||||||||
Revenues (Third parties) | 11,429 | 17,224 | 0 | 28,653 | 9,367 | 9,321 | 0 | 18688 | ||||||||
Revenues (Intercompany) | 13,738 | 0 | (13,738) | 0 | 13,912 | 0 | (13,912) | 0 | ||||||||
Total revenues | 25,167 | 17,224 | (13,738) | 28,653 | 23,279 | 9,321 | (13,912) | 18688 | ||||||||
COGS | (22,061) | (15,015) | 12,859 | (24,217) | (23,657) | (8,906) | 14,249 | -18314 | ||||||||
Gross Income | 3,106 | 2,209 | (879) | 4,436 | (378) | 415 | 337 | 374 | ||||||||
SG&A | 0 | (114) | 0 | (114) | 0 | 50 | 0 | 50 | ||||||||
Operating Income | 3,106 | 2,095 | (879) | 4,322 | (378) | 465 | 337 | 424 | ||||||||
EBITDA | 3,141 | 2,094 | (877) | 4,358 | (341) | 464 | 340 | 463 | ||||||||
Gross Margin | 27.2% | 12.8% | 15.5% | -4.0% | 4.5% | 2.0% | ||||||||||
EBITDA Margin | 27.5% | 12.2% | 15.2% | -3.6% | 5.0% | 2.5% | ||||||||||
Chile | Brazil | Optical F. | Argentina | Peru | Interco. | WIRE & CABLE | Chile | Brazil | Optical F. | Argentina | Peru | Colombia | Interco. | WIRE & CABLE | ||
Tons (Third parties) | 1,910 | 8,633 | 0 | 1,031 | 2,884 | 0 | 14,458 | 2,072 | 8,134 | 0 | 2,026 | 3,286 | 1,177 | 0 | 16,695 | |
Tons (Intercompany) | 11 | 92 | 0 | 44 | 147 | (294) | 0 | 70 | 471 | 0 | 473 | 296 | 0 | (1,310) | 0 | |
Tons (Total) | 1,921 | 8,725 | 0 | 1,075 | 3,031 | (294) | 14,458 | 2,142 | 8,605 | 0 | 2,499 | 3,582 | 1,177 | (1,310) | 16,695 | |
Kms. | 0 | 0 | 916 | 0 | 0 | 0 | 916 | 0 | 0 | 707 | 0 | 0 | 0 | 0 | 707 | |
Revenues (Third parties) | 11,079 | 40,500 | 316 | 3,493 | 16,642 | 0 | 72,030 | 12,684 | 38,368 | 568 | 5,128 | 19,210 | 6,688 | 0 | 82,646 | |
Revenues (Intercompany) | 542 | 472 | 0 | 84 | 616 | (1,714) | 0 | 674 | 1,475 | 16 | 1,053 | 1,261 | 0 | (4,479) | 0 | |
Total revenues | 11,621 | 40,972 | 316 | 3,577 | 17,258 | (1,714) | 72,030 | 13,358 | 39,843 | 584 | 6,181 | 20,471 | 6,688 | (4,479) | 82,646 | |
COGS | (9,470) | (33,600) | (335) | (2,885) | (14,081) | 2,137 | (58,234) | (11,335) | (34,799) | (739) | (5,240) | (17,117) | (5,319) | 4,369 | (70,180) | |
Gross Income | 2,151 | 7,372 | (19) | 692 | 3,177 | 423 | 13,796 | 2,023 | 5,044 | (155) | 941 | 3,354 | 1,369 | (110) | 12,466 | |
SG&A | (592) | (2,722) | (44) | (174) | (643) | (317) | (4,492) | (611) | (2,502) | (64) | (258) | (774) | (314) | (326) | (4,849) | |
Operating Income | 1,559 | 4,650 | (63) | 518 | 2,534 | 106 | 9,304 | 1,412 | 2,542 | (219) | 683 | 2,580 | 1,055 | (436) | 7,617 | |
EBITDA | 1,903 | 5,951 | (14) | 562 | 2,759 | 97 | 11,258 | 1,757 | 3,615 | (305) | 754 | 2,796 | 1,115 | (336) | 9,396 | |
Gross Margin | 19.4% | 18.2% | 19.8% | 19.1% | 19.2% | 15.9% | 13.1% | -27.3% | 18.4% | 17.5% | 15.1% | |||||
EBITDA Margin | 17.2% | 14.7% | 16.1% | 16.6% | 15.6% | 13.9% | 9.4% | -53.7% | 14.7% | 14.6% | 11.4% | |||||
Chile | Coin | Argentina | Interco. | BRASS MILLS | Chile | Coin | Argentina | Interco. | BRASS MILLS | |||||||
Tons (Third parties) | 7,219 | 594 | 384 | 0 | 8,197 | 5,447 | 469 | 276 | 0 | 6,192 | ||||||
Tons (Intercompany) | 529 | 0 | 0 | (529) | 0 | 221 | 0 | 0 | (221) | 0 | ||||||
Tons (Total) | 7,748 | 594 | 384 | (529) | 8,197 | 5,668 | 469 | 276 | (221) | 6,192 | ||||||
Revenues (Third parties) | 32,536 | 2,826 | 2,676 | 0 | 38,038 | 25,030 | 2,214 | 1,924 | 0 | 29,168 | ||||||
Revenues (Intercompany) | 3,717 | (7) | 828 | (4,538) | 0 | 3,505 | (1) | 163 | (3,667) | 0 | ||||||
Total revenues | 36,253 | 2,819 | 3,504 | (4,538) | 38,038 | 28,535 | 2,213 | 2,087 | (3,667) | 29,168 | ||||||
COGS | (30,216) | (2,242) | (2,925) | 4,643 | (30,740) | (26,458) | (2,002) | (2,727) | 3,670 | (27,517) | ||||||
Gross Income | 6,037 | 577 | 579 | 105 | 7,298 | 2,077 | 211 | (640) | 3 | 1,651 | ||||||
SG&A | (962) | (200) | (170) | (87) | (1,419) | (917) | (186) | (110) | (101) | (1,314) | ||||||
Operating Income | 5,075 | 377 | 409 | 18 | 5,879 | 1,160 | 25 | (750) | (98) | 337 | ||||||
EBITDA | 5,573 | 446 | 481 | (5) | 6,495 | 1,621 | 100 | (675) | (110) | 936 | ||||||
Gross Margin | 18.6% | 20.4% | 21.6% | 19.2% | 8.3% | 9.5% | -33.3% | 5.7% | ||||||||
EBITDA Margin | 17.1% | 15.8% | 18.0% | 17.1% | 6.5% | 4.5% | -35.1% | 3.2% | ||||||||
Chile | Argentina | Interco. | F. PACKAGING | Chile | Argentina | Peru | Interco. | F. PACKAGING | ||||||||
Tons (Third parties) | 2,667 | 1,256 | (16) | 3,907 | 2,837 | 1,333 | 7,784 | (1,907) | 10,047 | |||||||
Tons (Intercompany) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Tons (Total) | 2,667 | 1,256 | (16) | 3,907 | 2,837 | 1,333 | 7,784 | (1,907) | 10,047 | |||||||
Revenues (Third parties) | 8,273 | 3,693 | (79) | 11,887 | 8,533 | 3,455 | 11,975 | (1,016) | 22,947 | |||||||
Revenues (Intercompany) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Total revenues | 8,273 | 3,693 | (79) | 11,887 | 8,533 | 3,455 | 11,975 | (1,016) | 22,947 | |||||||
COGS | (6,694) | (3,234) | 78 | (9,850) | (7,054) | (3,174) | (10,116) | 875 | (19,469) | |||||||
Gross Income | 1,579 | 459 | (1) | 2,037 | 1,479 | 281 | 1,859 | (141) | 3,478 | |||||||
SG&A | (531) | (182) | (50) | (763) | (470) | (180) | (409) | (55) | (1,114) | |||||||
Operating Income | 1,048 | 277 | (51) | 1,274 | 1,009 | 101 | 1,450 | (196) | 2,364 | |||||||
EBITDA | 1,476 | 488 | (50) | 1,914 | 1,449 | 312 | 1,783 | (207) | 3,337 | |||||||
Gross Margin | 19.1% | 12.4% | 17.1% | 17.3% | 8.1% | 15.5% | 15.2% | |||||||||
EBITDA Margin | 17.8% | 13.2% | 16.1% | 17.0% | 9.0% | 14.9% | 14.5% | |||||||||
Chile | PROFILES | Chile | PROFILES | |||||||||||||
Tons (Third parties) | 3,618 | 3,618 | 2,799 | 2,799 | ||||||||||||
Tons (Intercompany) | 0 | 0 | 0 | 0 | ||||||||||||
Tons (Total) | 3,618 | 3,618 | 2,799 | 2,799 | ||||||||||||
Revenues (Third parties) | 9,459 | 9,459 | 9,520 | 9,520 | ||||||||||||
Revenues (Intercompany) | 0 | 0 | 0 | 0 | ||||||||||||
Total revenues | 9,459 | 9,459 | 9,520 | 9,520 | ||||||||||||
COGS | (7,658) | (7,658) | (7,488) | (7,488) | ||||||||||||
Gross Income | 1,801 | 1,801 | 2,032 | 2,032 | ||||||||||||
SG&A | (854) | (854) | (1,022) | (1,022) | ||||||||||||
Operating Income | 947 | 947 | 1,010 | 1,010 | ||||||||||||
EBITDA | 1,215 | 1,215 | 1,301 | 1,301 | ||||||||||||
Gross Margin | 19.0% | 19.0% | 21.3% | 21.3% | ||||||||||||
EBITDA Margin | 12.8% | 12.8% | 13.7% | 13.7% |
Exhibit 6: EBITDA by Business Unit and Country | ||||||||||||||||
(Six Months Ended June-2007) | ||||||||||||||||
YTD Jun 06 | YTD Jun 07 | |||||||||||||||
(Ch$ million) | (Ch$ million) | |||||||||||||||
Chile | Peru | Interco. | COPPER ROD | Chile | Peru | Interco. | COPPER ROD | |||||||||
Tons (Third parties) | 5,604 | 7,575 | 0 | 13,179 | 4,977 | 4,951 | 0 | 9,928 | ||||||||
Tons (Intercompany) | 6,051 | 0 | (6,051) | 0 | 5,127 | 0 | (5,127) | 0 | ||||||||
Tons (Total) | 11,655 | 7,575 | (6,051) | 13,179 | 10,104 | 4,951 | (5,127) | 9,928 | ||||||||
Revenues (Third parties) | 19,366 | 26,994 | 0 | 46,360 | 18,587 | 18,424 | 0 | 37,011 | ||||||||
Revenues (Intercompany) | 21,890 | 0 | (21,890) | 0 | 19,850 | 0 | (19,850) | 0 | ||||||||
Total revenues | 41,256 | 26,994 | (21,890) | 46,360 | 38,437 | 18,424 | (19,850) | 37,011 | ||||||||
COGS | (37,382) | (24,265) | 20,768 | (40,879) | (38,578) | (18,017) | 20,310 | (36,285) | ||||||||
Gross Income | 3,874 | 2,729 | (1,122) | 5,481 | (141) | 407 | 460 | 726 | ||||||||
SG&A | 0 | (187) | 0 | (187) | 0 | 0 | 0 | 0 | ||||||||
Operating Income | 3,874 | 2,542 | (1,122) | 5,294 | (141) | 407 | 460 | 726 | ||||||||
EBITDA | 3,945 | 2,542 | (1,120) | 5,367 | (68) | 406 | 461 | 799 | ||||||||
Gross Margin | 20.0% | 10.1% | 11.8% | -0.8% | 2.2% | 2.0% | ||||||||||
EBITDA Margin | 20.4% | 9.4% | 11.6% | -0.4% | 2.2% | 2.2% | ||||||||||
Chile | Brazil | Optical F. | Argentina | Peru | Interco. | WIRE & CABLE | Chile | Brazil | Optical F. | Argentina | Peru | Colombia | Interco. | WIRE & CABLE | ||
Tons (Third parties) | 4,919 | 16,509 | 0 | 2,025 | 6,418 | 0 | 29,871 | 4,437 | 16,970 | 0 | 4,183 | 7,149 | 2,030 | 0 | 34,769 | |
Tons (Intercompany) | 149 | 401 | 0 | 108 | 147 | (805) | 0 | 102 | 660 | 0 | 726 | 298 | 0 | (1,786) | 0 | |
Tons (Total) | 5,068 | 16,910 | 0 | 2,133 | 6,565 | (805) | 29,871 | 4,539 | 17,630 | 0 | 4,909 | 7,447 | 2,030 | (1,786) | 34,769 | |
Kms. | 0 | 0 | 916 | 0 | 0 | 0 | 916 | 0 | 0 | 1,528 | 0 | 0 | 0 | 0 | 1,528 | |
Revenues (Third parties) | 23,705 | 71,399 | 775 | 6,172 | 32,126 | 0 | 134,177 | 25,311 | 79,641 | 1,168 | 11,204 | 40,937 | 11,088 | 0 | 169,349 | |
Revenues (Intercompany) | 1,287 | 1,475 | 0 | 189 | 616 | (3,567) | 0 | 1,044 | 2,124 | 16 | 1,681 | 1,263 | 0 | (6,128) | 0 | |
Total revenues | 24,992 | 72,874 | 775 | 6,361 | 32,742 | (3,567) | 134,177 | 26,355 | 81,765 | 1,184 | 12,885 | 42,200 | 11,088 | (6,128) | 169,349 | |
COGS | (21,540) | (60,292) | (735) | (5,199) | (26,893) | 3,253 | (111,406) | (22,495) | (70,060) | (1,309) | (11,014) | (35,255) | (9,041) | 6,030 | (143,144) | |
Gross Income | 3,452 | 12,582 | 40 | 1,162 | 5,849 | (314) | 22,771 | 3,860 | 11,705 | (125) | 1,871 | 6,945 | 2,047 | (98) | 26,205 | |
SG&A | (1,127) | (4,562) | (43) | (318) | (1,254) | (573) | (7,877) | (1,132) | (4,573) | (144) | (523) | (1,343) | (539) | (628) | (8,882) | |
Operating Income | 2,325 | 8,020 | (3) | 844 | 4,595 | (887) | 14,894 | 2,728 | 7,132 | (269) | 1,348 | 5,602 | 1,508 | (726) | 17,323 | |
EBITDA | 3,022 | 10,539 | 93 | 904 | 5,043 | (919) | 18,682 | 3,435 | 9,350 | (308) | 1,497 | 6,048 | 1,626 | (640) | 21,008 | |
Gross Margin | 14.6% | 17.6% | 5.2% | 18.8% | 18.2% | 17.0% | 15.3% | 14.7% | -10.7% | 16.7% | 17.0% | 18.5% | 15.5% | |||
EBITDA Margin | 12.7% | 14.8% | 12.0% | 14.6% | 15.7% | 13.9% | 13.6% | 11.7% | -26.4% | 13.4% | 14.8% | 14.7% | 12.4% | |||
Chile | Coin | Argentina | Interco. | BRASS MILLS | Chile | Coin | Argentina | Interco. | BRASS MILLS | |||||||
Tons (Third parties) | 13,366 | 1,291 | 779 | 0 | 15,436 | 9,631 | 1,069 | 313 | 0 | 11,013 | ||||||
Tons (Intercompany) | 1,055 | 0 | 0 | (1,055) | 0 | 501 | 9 | 0 | (510) | 0 | ||||||
Tons (Total) | 14,421 | 1,291 | 779 | (1,055) | 15,436 | 10,132 | 1,078 | 313 | (510) | 11,013 | ||||||
Revenues (Third parties) | 52,780 | 5,155 | 4,175 | 0 | 62,110 | 41,147 | 4,868 | 3,165 | 0 | 49,180 | ||||||
Revenues (Intercompany) | 6,829 | (7) | 1,650 | (8,472) | 0 | 5,557 | 40 | 237 | (5,834) | 0 | ||||||
Total revenues | 59,609 | 5,148 | 5,825 | (8,472) | 62,110 | 46,704 | 4,908 | 3,402 | (5,834) | 49,180 | ||||||
COGS | (51,635) | (4,077) | (5,070) | 8,388 | (52,394) | (45,419) | (4,548) | (3,687) | 5,851 | (47,803) | ||||||
Gross Income | 7,974 | 1,071 | 755 | (84) | 9,716 | 1,285 | 360 | (285) | 17 | 1,377 | ||||||
SG&A | (1,843) | (368) | (267) | (156) | (2,634) | (1,723) | (377) | (197) | (192) | (2,489) | ||||||
Operating Income | 6,131 | 703 | 488 | (240) | 7,082 | (438) | (17) | (482) | (175) | (1,112) | ||||||
EBITDA | 7,170 | 833 | 630 | (288) | 8,345 | 496 | 158 | (342) | (199) | 113 | ||||||
Gross Margin | 15.1% | 20.8% | 18.1% | 15.6% | 3.1% | 7.4% | -9.0% | 2.8% | ||||||||
EBITDA Margin | 13.6% | 16.2% | 15.1% | 13.4% | 1.2% | 3.2% | -10.8% | 0.2% | ||||||||
Chile | Argentina | Interco. | F. PACKAGING | Chile | Argentina | Peru | Interco. | F. PACKAGING | ||||||||
Tons (Third parties) | 5,231 | 2,605 | (100) | 7,736 | 5,464 | 2,600 | 12,841 | (2,016) | 18,889 | |||||||
Tons (Intercompany) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Tons (Total) | 5,231 | 2,605 | (100) | 7,736 | 5,464 | 2,600 | 12,841 | (2,016) | 18,889 | |||||||
Revenues (Third parties) | 16,228 | 7,385 | (196) | 23,417 | 16,594 | 7,129 | 22,780 | (2,480) | 44,023 | |||||||
Revenues (Intercompany) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Total revenues | 16,228 | 7,385 | (196) | 23,417 | 16,594 | 7,129 | 22,780 | (2,480) | 44,023 | |||||||
COGS | (13,139) | (6,492) | 196 | (19,435) | (13,700) | (6,593) | (19,506) | 2,205 | (37,594) | |||||||
Gross Income | 3,089 | 893 | 0 | 3,982 | 2,894 | 536 | 3,274 | (275) | 6,429 | |||||||
SG&A | (1,012) | (292) | (92) | (1,396) | (940) | (368) | (1,129) | (100) | (2,537) | |||||||
Operating Income | 2,077 | 601 | (92) | 2,586 | 1,954 | 168 | 2,145 | (375) | 3,892 | |||||||
EBITDA | 2932 | 1015 | (92) | 3855 | 2818 | 608 | 3084 | (374) | 6136 | |||||||
Gross Margin | 19.0% | 12.1% | 17.0% | 17.4% | 7.5% | 14.4% | 14.6% | |||||||||
EBITDA Margin | 18.1% | 13.7% | 16.5% | 17.0% | 8.5% | 13.5% | 13.9% | |||||||||
Chile | PROFILES | Chile | PROFILES | |||||||||||||
Tons (Third parties) | 6,731 | 6,731 | 5,698 | 5,698 | ||||||||||||
Tons (Intercompany) | 0 | 0 | 0 | 0 | ||||||||||||
Tons (Total) | 6,731 | 6,731 | 5,698 | 5,698 | ||||||||||||
Revenues (Third parties) | 17,578 | 17,578 | 18,203 | 18,203 | ||||||||||||
Revenues (Intercompany) | 0 | 0 | 0 | 0 | ||||||||||||
Total revenues | 17,578 | 17,578 | 18,203 | 18,203 | ||||||||||||
COGS | (14,145) | (14,145) | (14,442) | (14,442) | ||||||||||||
Gross Income | 3,433 | 3,433 | 3,761 | 3,761 | ||||||||||||
SG&A | (1,633) | (1,633) | (1,941) | (1,941) | ||||||||||||
Operating Income | 1,800 | 1,800 | 1,820 | 1,820 | ||||||||||||
EBITDA | 2,327 | 2,327 | 2,392 | 2,392 | ||||||||||||
Gross Margin | 19.5% | 19.5% | 20.7% | 20.7% | ||||||||||||
EBITDA Margin | 13.2% | 13.2% | 13.1% | 13.1% |
Exhibit 7: Consolidated Balance Sheet | ||||||
Ch$ millions | US$ millions (1) | |||||
YTD Jun 06 | YTD Jun 07 | YTD Jun 06 | YTD Jun 07 | |||
Cash | 5,621 | 13,718 | 10 | 26 | ||
Time deposits and marketable securities | 1,526 | 1,043 | 3 | 2 | ||
Accounts receivable | 102,558 | 117,686 | 190 | 223 | ||
Accounts receivable from related companies | 667 | 1,101 | 1 | 2 | ||
Inventories | 106,371 | 126,260 | 197 | 240 | ||
Recoverable taxes | 14,672 | 13,527 | 27 | 26 | ||
Prepaid expenses and other current assets | 6,686 | 11,413 | 12 | 22 | ||
Current Assets | 238,101 | 284,748 | 441 | 540 | ||
Property, plant and equipment (net) | 152,620 | 167,550 | 283 | 318 | ||
Investments | 12,359 | 6,321 | 23 | 12 | ||
Goodwill (net) | 18,565 | 16,654 | 34 | 32 | ||
Long-term receivables | 587 | 393 | 1 | 1 | ||
Other | 12,509 | 10,799 | 23 | 20 | ||
Other Assets | 44,021 | 34,167 | 82 | 65 | ||
ASSETS | 434,742 | 486,466 | 806 | 923 | ||
Short-term bank borrowings | 32,128 | 51,482 | 60 | 98 | ||
Current portion of long-term bank and other debt | 12,579 | 17,235 | 23 | 33 | ||
Current portion of bonds payable | 4,518 | 4,714 | 8 | 9 | ||
Current portion of long-term liabilities | 494 | 2,259 | 1 | 4 | ||
Dividends payable | 72 | 83 | 0 | 0 | ||
Accounts payable | 27,090 | 39,498 | 50 | 75 | ||
Notes payable | 1,172 | 1,071 | 2 | 2 | ||
Other payables | 567 | 955 | 1 | 2 | ||
Notes and accounts payable to related companies | 386 | 655 | 1 | 1 | ||
Accrued expenses | 8,034 | 8,309 | 15 | 16 | ||
Withholdings payable | 1,217 | 1,626 | 2 | 3 | ||
Deferred income | 3,754 | 3,010 | 7 | 6 | ||
Income taxes | 0 | 0 | 0 | 0 | ||
Other current liabilities | 2,117 | 2,080 | 4 | 4 | ||
Current Liabilities | 94,129 | 132,976 | 174 | 252 | ||
0 | 0 | 0 | 0 | |||
Long-term bank and other debt | 52,970 | 38,798 | 98 | 74 | ||
Bonds payable | 22,907 | 18,189 | 42 | 35 | ||
Accrued expenses | 5,091 | 5,748 | 9 | 11 | ||
Long-Term Liabilities | 80,968 | 62,735 | 150 | 119 | ||
Minority Interest | 11,209 | 25,714 | 21 | 49 | ||
Common stock | 269,068 | 216,761 | 499 | 411 | ||
Share premium | 40,848 | 40,851 | 76 | 78 | ||
Reserves | 1,175 | (5,546) | 2 | (11) | ||
Retained earnings | (62,655) | 12,975 | (116) | 25 | ||
Total Shareholders' Equity | 248,436 | 265,041 | 461 | 503 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | 434,742 | 486,466 | 806 | 923 | ||
1 Exchange rate on June 30 2007 US$1.00 = 526.86 | ||||||
Exchange rate on June 30 2006 US$1.00 = 539.44 |
Exhibit 8: Consolidated Statement of Cash Flow | ||||||
Ch$ millions | US$ millions (1) | |||||
YTD Jun 06 | YTD Jun 07 | YTD Jun 06 | YTD Jun 07 | |||
Cash received from customers | 304,069 | 357,920 | 564 | 679 | ||
Financial income received | 606 | 1,745 | 1 | 3 | ||
Dividends and other distributions | 59 | - | 0 | - | ||
Other incomes | 3,703 | 1,948 | 7 | 4 | ||
Payments to suppliers and employees | (329,186) | (353,926) | (610) | (672) | ||
Interests paid | (5,486) | (5,001) | (10) | (9) | ||
Income taxes paid | (2,459) | (3,442) | (5) | (7) | ||
Other expenses | (294) | (3,215) | (1) | (6) | ||
Added Value Tax and others | (2,570) | 1,217 | (5) | 2 | ||
Cash Flow from Operating Activities | (31,557) | (2,754) | (59) | (5) | ||
Sale of Property, Plant and Equipment | 2,502 | 437 | 5 | 1 | ||
Sale of permanent investments | - | 0 | - | 0 | ||
Sale of other investments | - | - | - | - | ||
Other proceeds from investments | 125 | 3,895 | 0 | 7 | ||
Acquisition of fixed assets | (5,618) | (11,014) | (10) | (21) | ||
Permanent investments | (4) | (6,801) | (0) | (13) | ||
Other disbursements | - | (13) | - | (0) | ||
Cash Flow used in Investing Activities | (2,995) | (13,497) | (6) | (26) | ||
Issuance of shares | 9,641 | 316 | 18 | 1 | ||
Loans obtained | 97,178 | 87,227 | 180 | 166 | ||
Registered loans from related companies | - | - | - | - | ||
Other financing sources | - | - | - | - | ||
Dividends paid | (431) | (669) | (1) | (1) | ||
Capital distributions | - | (2,664) | - | (5) | ||
Repayments of bank borrowings | (69,466) | (68,810) | (129) | (131) | ||
Repayments of bonds | (2,139) | (2,234) | (4) | (4) | ||
Payment of expenses related to shares issuance | - | - | - | - | ||
Payment loans documented from related companies | (1,583) | - | (3) | - | ||
Others | - | - | - | - | ||
Cash Flow provided by Financing Activities | 33,201 | 13,167 | 62 | 25 | ||
Net Cash Flow for the Period | (1,352) | (3,084) | (3) | (6) | ||
Effect of price-level restatements on cash and cash equivalents | 717 | (33) | 1 | (0) | ||
Net increase in cash and cash equivalents | (635) | (3,117) | (1) | (6) | ||
Cash and cash equivalents at the beginning of year | 8,105 | 17,879 | 15 | 34 | ||
Cash and cash equivalents at end of the period | 7,470 | 14,762 | 14 | 28 | ||
_____________________ | ||||||
1 Exchange rate on June 30 2007 US$1.00 = 526.86 | ||||||
Exchange rate on June 30 2006 US$1.00 = 539.44 |