Grupo Industrial Maseca S A De C V Inactive
Filed: 27 Oct 05, 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, 2005
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 26, 2005
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 26, 2005
| Rogelio Sanchez (52 81) 8399-3312 (52 81) 8399-3324 |
| Monterrey, N.L., Mexico, October 26, 2005 |
|
THIRD QUARTER 2005 RESULTS
(Peso amounts are stated in millions in constant terms as of September 30, 2005)
RECENT DEVELOPMENTS
On August 24, 2005, GIMSA acquired a 100% interest in Agroinsa, S.A. de C.V. (Agroinsa), a company based in Monterrey, Mexico, which is engaged primarily in the production of corn flour and, to a lesser extent, wheat flour and other products. In accordance with applicable law, GIMSA notified the Mexican Federal Competition Commission (Comision Federal de Competencia) of the acquisition of Agroinsa. Regulatory approval for this acquisition is pending.
RESULTS OF OPERATIONS
3Q05 vs. 3Q04
Sales volume increased 12% to 420,000 metric tons during 3Q05 mainly as a result of the recent acquisition of Agroinsa and, to a lesser extent, (1) increased sales to corporate customers in connection with new product development, and (2) increased sales to wholesalers due to increased regional coverage of some of our customers. Approximately 85% of GIMSA's sales volume growth is derived from the acquisition of Agroinsa, whose operations are reflected in GIMSA beginning in August 2005. |
Net sales increased 11% to Ps 1,680 million, reflecting the aforementioned sales volume growth. Approximately 80% of the increase in net sales is due to the inclusion of Agroinsa. Average prices decreased 2% as a result of the change in the product mix due to the incorporation of Agroinsa's products. GIMSA's average corn flour prices were similar to those of third quarter 2004. |
Cost of sales as a percentage of net sales improved to 70.3% from 74.7% as a result of lower corn costs and better cost absorption in GIMSA's operations prior to the inclusion of Agroinsa. In absolute terms, cost of sales increased 4% in connection with sales volume growth derived from the inclusion of Agroinsa. |
SG&A as a percentage of net sales rose to 18.5% from 18.0% and, in absolute terms, increased 13%. Both increases were due mainly to higher freight and advertising expenses. Freight expenses increased in connection with (1) growth in sales to corporate customers for whom the company usually pays freight expenses, and (2) increased intercompany shipments due to higher demand in the southeast region of the country. In absolute terms, SG&A also increased in connection with the acquisition. |
Operating income as a percentage of net sales improved to 11.2% from 7.2% and, in absolute terms, increased 71% to Ps 188 million. |
Comprehensive financing cost, net, resulted in income of Ps 11 million versus a cost of Ps 7 million in third quarter 2004. This improvement resulted from (1) higher interest income in connection with higher cash balances and higher interest rates, and (2) lower monetary position loss due to lower inflation and higher monetary liabilities in connection with the acquisition of Agroinsa. |
Other expenses, net, were Ps 9 million, compared to Ps 61 million in the same period last year. The reduction took place because in 3Q04 the company wrote down some fixed assets at the Chalco plant. |
Provisions for income taxes and employees' profit sharing totaled Ps 59 million, compared to Ps 12 million in 3Q04. The Ps 47 million increase resulted from higher pretax income. |
Majority net income increased 362% to Ps 127 million due mainly to higher operating income and reductions in other expenses. Majority net income as a percentage of net sales rose to 7.6% from 1.8%. |
FINANCIAL POSITION
September 2005 vs. September 2004
Balance-Sheet Highlights | Total assets were Ps 8,328 million, Ps 969 million higher, mostly in connection with the recent acquisition of Agroinsa. Current assets increased Ps 510 million in connection with higher cash balances, higher corn inventories, and higher accounts receivable. Total liabilities were Ps 2,141 million, Ps 815 million higher, due mostly to the incorporation of Agroinsa and higher long-term accounts payable in connection with the pending payment of the acquisition of Agroinsa. Most of the payment will mature in 2008. Stockholders' equity on September 30, 2005, was Ps 6,187 million, representing a 3% increase. |
Other Ratios
| Operational Ratios | 3Q05 | 2Q05 | 3Q04 |
| Accounts receivable outstanding (days to sales) | 52 | 51 | 46 |
| Inventory turnover (days to cost of sales) | 102 | 71 | 91 |
| Net working capital turnover (days to sales) | 110 | 92 | 114 |
| Asset turnover (total assets to sales) | 1.2 | 1.2 | 1.2 |
| Profitability Ratios | |||
| ROA | 7.5 | 6.4 | 4.5 |
| ROE | 9.4 | 7.8 | 5.4 |
| ROIC | 5.8 | 4.6 | 3.8 |
CONFERENCE CALL
The company will hold a conference call to discuss its third quarter 2005 results on Thursday, October 27, 2005, 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 (888) 515-2235; international or local callers dial (719) 457-2601; the passcode for all callers is 4453237. The conference call will also be webcast live via the GRUMA corporate website, www.gruma.com. For the conference replay, please call (888) 203-1112 from the United States or Canada, or (719) 457-0820 for international or local callers; passcode 4453237. For more details, please go to the Investor Relations page of the website. The audio webcast will be archived on the site.
ACCOUNTING PROCEDURES
All figures have been restated in Mexican pesos of constant purchasing power as of September 30, 2005, 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'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 26, 2005
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