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
ACINDAR ARGENTINE STEEL INDUSTRY INC.
(Translation of Registrant's name into English)
Estanislao Zeballos 2739
B1643AGY - Beccar
Province of Buenos Aires
Argentina
(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.)
(Check One) 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.)
(Check One) Yes No X
--- ---
(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b). 82- .)
December 5, 2002
Acindar logo
Contacts:
Jose I. Giraudo Andrea Dala
Investor Relations Manager Investor Relations Officer
Acindar S.A. Acindar S.A.
(54 11) 4719 8674 (54 11) 4719 8672
ACINDAR S.A.
NINE-MONTH PERIOD 2002 RESULTS
ENDED AS OF SEPTEMBER 30, 2002
Buenos Aires, November 8th, 2002 - Acindar S.A. (the "Company") today announced
a net loss for the nine-month period ended September 30, 2002 of Ps. 501.8
million. The loss is attributable primarily to the Company's Financial and
Holding Losses, which mainly reflects the exchange losses caused by the
devaluation of the Argentine peso since January 2002.
On July 17, 2002, the Argentine government issued Decree No. 1269/02 which
provided, among other things, that financial statements be restated to reflect
the changes in the purchasing power of the peso. Subsequently, on July 25, 2002
the Comision Nacional de Valores (the "CNV") issued Resolution No. 415/2002,
which provided procedures for reflecting the changes in the purchasing power of
the peso for companies, including the Company, that have registered securities
with the CNV. Such procedures are effective for any financial statements
corresponding to any period commencing on or after January 1, 2002 and filed
with the CNV subsequent to the date of the resolution.
Financial data for the nine-month ended September 30, 2001, presented herein for
comparative purposes, has been restated to September 30, 2002 using a conversion
factor of 2.2120, which represents the rate of inflation for the nine-month
period ended September 30, 2002.
Revenues for the nine-month period ended September 30, 2002 increased by 2.4%
compared to revenues for the same period in 2001. This increase reflects
increased export sales and, to a lesser extent, an increase in local revenues.
While export revenues, denominated in foreign currencies, and volume increased
in comparison to the devaluation of the peso (which exceeded the rate of
inflation significantly for the nine-month period ended September 30, 2002),
increased domestic prices almost entirely offset an increase in the Company's
production costs, thereby partially offsetting the decrease in volume sold to
the domestic market.
While electricity and natural gas prices have not risen significantly, average
production costs grew primarily as a result of the impact of devaluation on
imported raw materials. The Company cannot provide assurances that, in the
coming months, local cost increases (including increases in electricity and gas
prices) will not significantly exceed the rate of devaluation. There can be no
assurance that the Company will be able to increase domestic prices at the same
rate that costs increase in the future. The Company believes that an increase in
the rate of inflation and a slowdown in the pace of the devaluation will cause
its margins, which are at historically high levels, to contract to its average
historic levels.
Operating Results
Net sales increased 2.4%, to Ps. 773.9 million for the nine-month period ended
September 30, 2002, as compared with Ps. 755.8 million for the same period of
2001.
Domestic shipments for the nine-month period ended September 30, 2002 posted a
decrease of 22.9% in comparison with the same period of 2001. During the
nine-month period ended September 30, 2002, the Company was able to increase
domestic prices to compensate almost entirely for higher production costs.
Domestic net sales were Ps. 460.7 million for the nine-month period ended
September 30, 2002, compared with Ps 571.7 million for the same period of 2001.
Export net sales posted a significant increase, from Ps. 184.2 million for the
nine-month period ended September 30, 2001 to Ps. 313.2 million for the same
period of the 2002. Export volume rose 20.2%, reaching 278.0 thousand tons in
September 30, 2002.
The Company's production costs per ton decreased by 9.9% for the nine-month
period ended September 30, 2002 compared to the same period of 2001, reflecting
a lower increase in the Company's domestic costs compared to the general
rate of inflation, as measured by the wholesale internal price index.
Gross profits for the nine-month period ended September 30, 2002 amounted to Ps.
300.5 million, compared with Ps. 168.8 million for the same period of 2001.
EBITDA for the nine-month period ended September 30, 2002 was Ps. 205.0 million,
in comparison with Ps. 75.1 million for the same period of 2001.
Financial income (expenses) and holding gains (losses) for the nine-month period
ended September 30, 2002 represented a net loss of Ps. 608.4 million, compared
with a net loss of Ps. 111.8 million in the same period of 2001. Foreign
exchange losses for the nine-month period ended September 30, 2002 were Ps.
1090.9 million, Ps. 75.1 million of which was related to capital expenditure
financing that was capitalized in fixed assets in accordance with accounting
standards and CNV Resolution No. 398/02. The effect of exposure to inflation on
results of operations was Ps. 495.7 million.
Balance Sheet and Cash Flow Statement
As of September 30, 2001, the Company's shareholders' equity amounted to Ps.
434.7 million. As a consequence of the reported foreign exchange loss, the
Company reported a negative shareholders' equity of Ps. 211.1 million as of
September 30, 2002.
To protect the continuity of its operations, on December 19, 2001, Acindar
announced that it had discontinued payments of interest on and principal of
certain of its financial debt.
During the nine-month period ended September 30, 2002 the Company, together with
advisors, continued discussions with a committee of creditors of the Company.
Schedule A
(million of Pesos restated to September 2002)
Balance Sheet
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(Consolidated Information)
September September
2002 2001
ASSETS
Current Assets
Cash & Investments 60.2 30.1
Accounts Receivables 165.5 231.8
Other Receivables 62.4 71.3
Inventories 143.2 161.2
Other Current Assets 4.6 12.6
Total Current Assets 435.9 507.0
Non-Current Assets
Fix Assets 936.2 976.4
Other Non-Current Assets 111.4 289.9
Total Non-Current Assets 1047.6 1266.3
TOTAL ASSETS 1483.5 1773.3
LIABILITIES
Current Liabilities
Accounts Payable 173.8 262.4
Loans 503.4 314.7
Other Current Liabilities 86.4 87.0
Total Current Liabilities 763.6 664.1
Non Current Liabilities
Loans 880.8 612.5
Other Non Current Liabilities 50.2 62.0
Total Non Current Liabilities 931.0 674.5
TOTAL LIABILITIES 1694.6 1338.6
TOTAL STOCHKHOLDERS EQUITY (211.1) 434.7
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY 1483.5 1773.3
Schedule B
(million of Pesos restated to September 2002)
Income Statement
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(Consolidated Information) September September
(Nine-Month Period) 2002 2001
Shipments (000 Tons)
Domestic Market 440.5 61.3% 571.5 71.2%
Export Market 278.0 38.7% 231.3 28.8%
Total 718.5 100.0% 802.8 100.0%
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Sales (000 U$S)
Domestic Market 460.7 59.5% 571.7 75.6%
Export Market 313.2 40.5% 184.1 24.4%
Total 773.9 100.0% 755.8 100.0%
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Net Sales 773.9 100.0% 755.8 100.0%
Cost of Sales (473.5) (61.2) (587.0) (77.7%)
Gross Profit 300.4 38.8% 168.8 22.3%
Selling Expenses (16.6) (2.1%) (26.7) (3.5%)
Administration Expenses (40.5) (5.2%) (39.4) (5.2%)
Depreciation & Amortization (85.8) (11.1%) (81.1) (10.7%)
Doubtful Accounts (35.5) (4.6%) (23.9) (3.2%)
Other Taxes (2.8) (0.4%) (3.7) (0.5%)
Operating Income 119.2 15.4% (6.0) (0.8%)
Other Operating Income - Net (7.0) (0.9%) (51.7) (6.8%)
Long Term Investments Results (5.5) (0.7%) 1.2 0.2%
Financial & Holding Results (608.4) (78.6%) (111.8) (14.8%)
Non Operating Charges - - (38,2) (5.1%)
Loss before Income Tax (501.7) (64.8%) (206.5) (27.3)
Income Tax and Tax on Minimum (0.1) - (0.6) (0.1%)
Notional Income
Net Loss (501.8) (64.8%) (207.1) (27.4%)
Schedule C
(million of Pesos restated to September 2002)
Statement of Source and Use of Funds
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(Consolidated Information)
(Nine-Month Period)
September September
2002 2001
Ordinary Loss before Tax (501.7) (206.5)
Ordinary Items not providing or nor requiring funds 786.2 286.9
Operating Income 284.5 80.4
Changes in Working Capital (233.4) (117.1)
Interest - Net 1.1 (85.4)
Dismissal Indemnities and taxes paid (15.7) (46.3)
Net Investments in Fixed Assets 3.8 (11.0)
Net funds from financing activities (0.2) 101.2
Other 7.1 (0.7)
Increase (Decrease) in funds & Cash items 47.2 (78.9)
SIGNATURES
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.
ACINDAR INDUSTRIA ARGENTINA DE ACEROS S.A.
(Registrant)
Date: December 5, 2002
By /s/ Jorge N. Videla
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Jorge N. Videla