Grupo Industrial Maseca S A De C V Inactive
Filed: 29 Oct 04, 12:00am
United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant To Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934
For the month of October, 2004
GRUPO INDUSTRIAL MASECA, S.A. de C.V.
(MASECA INDUSTRIAL GROUP, INC.)
(Translation of Registrant's name into English)
Calzada del Valle Ote. 407
Col. Del Valle, San Pedro Garza Garcia, N.L. Mexico 66220
(Address of principal office)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F ___
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes ___ No X
CONTENTS
* Press Release dated October 28, 2004
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
GRUPO INDUSTRIAL MASECA, S.A. de C.V.
By /s/ Raul Alonso Pelaez Cano
___________________________
Raul Alonso Pelaez Cano
Chief Financial Officer
Date: October 28, 2004
| Contacts: |
| Monterrey, N.L., Mexico, October 28, 2004 | New York Stock Exchange: MSK Bolsa Mexicana deValores: MASECAB |
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION FOR THIRD QUARTER 2004
(Peso amounts are stated in millions in constant terms as of September 30, 2004)
RESULTS OF OPERATIONS |
3Q04 vs. 3Q03
Net Sales
GIMSA's sales volume increased 6% during the quarter as a result of the following:
The successful development of new types of corn flour, which has led some corporate customers to switch to the corn flour method from the traditional method and others to use GIMSA as their preferred supplier
Increased sales coverage and the expansion of some of our supermarket clients' operations and outlets
Export sales to Gruma Corporation
The customers' build-up of corn flour inventories in advance of price increases, which were implemented at the end of third quarter
Net sales increased 7% to Ps 1,464 million, reflecting higher sales volume and, to a lesser extent, higher corn flour prices.
Cost of sales
Cost of sales as a percentage of net sales increased to 74.7% compared to 73.0% in third quarter 2003, resulting mainly from higher corn and energy costs. In absolute terms, cost of sales increased 10% due to the aforementioned sales volume growth and cost increases.
Selling, General, and Administrative Expenses (SG&A)
SG&A as a percentage of net sales decreased to 18.0% compared to 18.9% in 3Q03 due to better expense absorption. In absolute terms, SG&A rose 2% to Ps 264 million resulting from higher selling expenses stemming from the company's national marketing campaign, which was launched at the end of 2003.
Operating Income
Operating income as a percentage of net sales decreased to 7.2% from 8.1% in 3Q03 and, in absolute terms, decreased 4% to Ps 106 million due to the aforementioned increases in costs and expenses.
Net Comprehensive Financing Cost
Items | 3Q04 Ps millions | 3Q03 Ps millions | Change Ps millions | Comments |
| Interest expense | 2 | 2 | - | |
| Interest income | (15) | (15) | - | |
| Foreign exchange loss (gain) | 1 | 0 | 1 | Higher average peso devaluation |
| Monetary position loss (gain) | 20 | 13 | 7 | Higher net monetary asset position; higher inflation |
Total | 7 | 0 | 8 |
Other Expenses, Net
Other expenses, net, resulted in expense of Ps 59 million compared to income of Ps 4 million in 3Q03. The difference resulted from a write-off of some fixed assets at the Chalco plant, which has been inactive since October 1999.
Taxes and Employees' Profit Sharing
Provisions for income taxes and employees' profit sharing were Ps 12 million, compared to Ps 38 million in 3Q03. The Ps 26 million decrease resulted from a cancellation of deferred income tax in connection with the aforementioned write-off at the Chalco plant.
Majority Net Income
Majority net income decreased 64% to Ps 27 million due mainly to the aforementioned write-off at the Chalco plant. Majority net income as a percentage of net sales decreased to 1.8% from 5.5%.
FINANCIAL POSITION |
September 2004 vs. June 2004
On September 30, 2004, assets totaled Ps 7,092 million, 4% lower than on June 30, 2004, due to lower corn inventories resulting from the consumption of inventories built during the summer corn crop season. In addition, property, plant, and equipment, net, declined because depreciation exceeded capital expenditures.
Total liabilities on September 30, 2004, were Ps 1,278 million, representing a decrease of 1% due mostly to lower deferred income taxes in connection with the write-off at the Chalco plant.
Stockholders' equity on September 30, 2004, was Ps 5,814 million, representing a 5% decrease.
FINANCIAL RATIOS |
Operational Ratios
| 3Q04 | 2Q04 | 3Q03 | |
| Accounts receivable outstanding (days to sales) | 47 | 47 | 48 |
| Inventory turnover (days to cost of sales) | 91 | 125 | 91 |
| Net working capital turnover (days to sales) | 114 | 140 | 120 |
| Asset turnover (total assets to sales) | 1.2 | 1.3 | 1.3 |
Profitability Ratios
3Q04 % | 2Q04 % | 3Q03 % | |
| ROA | 4.5 | 5.1 | 3.5 |
| ROE | 5.5 | 6.2 | 4.3 |
| ROIC | 3.7 | 4.3 | 3.9 |
CONFERENCE CALL
GIMSA will hold a conference call to discuss third quarter 2004 results on October 29, 2004, at 11:30 a.m. ET (10:30 a.m. Mexico and CT; 9:30 a.m. MT; 8:30 a.m. PT). From the United States or Canada please call (800) 946-0783; international or local callers dial (719) 457-2658. The conference call will also be web-cast live via the GRUMA corporate website, www.gruma.com. For the conference replay, please call (888) 203-1112 from the United States or Canada, (719) 457-0820 for international or local callers; pass code: 887899. For more details, please visit the Investor Relations page of the website. The audio web-cast will be archived on the site.
ACCOUNTING PROCEDURES
All figures have been restated in Mexican pesos of constant purchasing power as of September 30, 2004, and were prepared in accordance with Mexican generally accepted accounting principles, commonly referred to as ''Mexican GAAP''. The restatement was prepared using factors derived from the Mexican National Consumer Price Index.
ABOUT GIMSA
Founded in 1949, GIMSA, S.A. de C.V., is the world's largest producer of corn flour. GIMSA is engaged principally in the production, distribution, and sale of corn flour in Mexico under the MASECA® brand name. GIMSA owns 18 production facilities located throughout the country and has an estimated annual corn flour capacity of 2.3 million metric tons. GIMSA's corn flour is used mainly in the preparation of tortillas and other related products.
This report may contain certain forward-looking statements and information relating to GIMSA, S.A. de C.V., that are based on the beliefs of its management as well as assumptions made by and information then available to GIMSA. Such statements reflect the views of GIMSA with respect to future events and are subject to certain risks, uncertainties, and assumptions. Many factors could cause the actual results, performance, or achievements of GIMSA to be materially different from historical results or any future results, performance, or achievements that may be expressed or implied by such forward-looking statements. Such factors include, among others, changes in economic, political, social, governmental, business, or other factors globally or in Mexico, as well as world and domestic corn prices. If one or more of these risks or uncertainties materializes, or underlying assumptions are proven incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, or targeted. GIMSA does not intend, and undertakes no obligation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
October 28, 2004
Comision Nacional Bancaria y de Valores
Avenida Insurgentes Sur # 1971
Colonia Guadalupe Inn
Delegacion Alvaro Obregon
Mexico, D.F. C.P. 01020
At'n: Karla Siller Ojeda
Chief Supervisor for Issuers
We, ROBERTO GONZALEZ BARRERA and JUAN ANTONIO QUIROGA GARCIA, Chief Executive Officer and Senior Corporate Controller, respectively, of GRUPO INDUSTRIAL MASECA, S.A. DE C.V. (the ''Issuer''), in accordance with article 33, section II of the Disposiciones de Caracter General Aplicables a las Emisoras de Valores y a Otros Participantes del Mercado de Valores (''Mexican General Applicable Rules for Securities Issuers and Other Participants in the Securities Market''), hereby state under oath that, within the scope of our duties, we prepared the information contained in this quarterly report which, to the best of our knowledge, fairly presents the Issuer's condition. Furthermore, we state that we do not have knowledge of omitted or untrue material information in this quarterly report or that it contains information that might mislead investors.
GRUPO INDUSTRIAL MASECA, S.A. DE C.V.
/s/
____________________________
Name: Roberto Gonzalez Barrera
Title: Chief Executive Officer
/s/
_______________________________
Name: Juan Antonio Quiroga Garcia
Title: Senior Corporate Controller