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- .) ---
September 9, 2003
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.
FIRST SEMESTER OF YEAR 2003 RESULTS
ENDED AS OF JUNE 30, 2003
Buenos Aires, August 8th, 2003 - Acindar S.A. (the "Company") today announced
net income for the period ended June 30th, 2003 of Ps. 353.3 million. Results
were positively affected by the revaluation of the Peso which resulted in a
foreign exchange gains of Ps. 151.6 million.
On April 8th, 2003 the Comision Nacional de Valores issued Resolution 441/03,
which suspended the application of inflation adjustments in financial statements
beginning March 1st, 2003. Whereas, for the period from January 1, 2003 through
February 28, 2003, the Company's results were adjusted by applying variations in
the Argentine wholesale price index to such results from the date of the
relevant event through February 28, 2003, such results for the period from March
1st through June 30th , 2003 were expressed in nominal Argentine pesos.
Furthermore, any comparison between the first semester of 2003 and the same
period in 2002 should take into account the extremely adverse conditions
prevailing in Argentina during the first semester of 2002. Therefore, a
comparison between such periods should be done carefully and must consider the
fact that such periods correspond to the most recessive and volatile period of
the recent argentine history.
Revenues for the period ended June 30th, 2003 significantly increased when
compared to revenues for the same period in 2002. While domestic revenues
increased as a consequence of larger volumes and an increase in domestic prices
(which resulted mainly from an increase in the Company's production costs),
export sales decreased as a consequence of lower export prices and volume.
Export prices were influenced by a lower exchange rate and a smaller mix of
sales.
While electricity and natural gas prices have not risen significantly, the
Company believes that in coming months, local costs increases (including
electricity and gas prices) may exceed significantly its ability to raise its
prices as a result of such increases. Additionally, the Company believes that an
increase in the rate of inflation and a fluctuations in the value of the peso
may cause its margins to decrease to their average historical levels.
Operating Result
- ----------------
Net sales as of March 2003 increased 32.8%, to Ps. 625.7 millions for the period
ended June 30th, 2003, as compared with Ps. 471.1 millions for the same period
of year 2002.
Domestic net sales increased from Ps. 271.6 million for the period ended June
30th, 2002 to Ps. 487.2 million for the present period. Higher domestic sales
were the result of an increase in shipments and higher domestic prices.
Export sales decreased from Ps. 205.6 million for the period ended June 30th,
2002 to Ps. 151.9 million for the period ended June 30, 2003.
The Company's average selling price for the first semester of year 2003 was 7.3%
higher than for the same period of year 2002 .
The Company's average cost per ton of the Company decreased 2.7% compared to the
same period of the previous year.
Gross profits for first semester of year 2003 rose to Ps. 270.9 millions
compared to Ps. 178.7 millions for the same period of year 2002.
Administration and selling expenses for the semester ended June 30th, 2002
included a charge related to the provision for debt reestructuring fees.
Consequently administrative and selling expenses for the first semester of year
2003 showed a decrease of 34.0% when compared with the same period of year 2002.
As a consequence of this performance, EBITDA for the semester ended June 2003
was Ps. 249.4 millions (39.8% of net sales), in comparison with Ps. 113.9
millions (24.2% of net sales) for the same period of the previous year.
Financial income (expenses) and holding gains (losses), as a consequence of debt
restructuring and revaluation of the peso, represented a net gain of Ps. 129.1
millions, compared to a net loss of Ps. 695.5 millions in the same period of
year 2002. As a consequence of the revaluation of the Peso during the period
foreign exchange gains amounted to Ps. 151.6 million.
Income tax for the period was a gain of Ps. 12.1 million due to the effect of
deferred income tax applied since January 1st, 2003 in accordance with new
accounting rules.
Net Income for the semester ended June 30th, 2003 amounted to Ps. 353.3
millions, no extraordinary results were recorded. Net loss for the semester
ended June 30th, 2002 amounted to a loss of Ps. 622.6 million.
Debt Restructuring
- ------------------
On March 25th, 2003 the Company issued a press release announcing the outlines
of a proposal for the restructuring of certain of its financial indebtedness to
the committee of its creditors, which found that such proposal provided a
foundation for a potentially successful restructuring agreement acceptable to
the Company's creditors.
The first stage of the restructuring process was a Cash Tender Offer which
expired on May 29th, 2003. As previously announced by the Company, U.S.$
40,041,663 in aggregate principal amount of Notes and Dollar Debt was validly
tendered pursuant to the Cash Tender Offer. Acindar has accepted for purchase,
at a Purchase Price of U.S.$650 per Ps. 1,000 principal amount, all of the Notes
and Dollar Debt validly tendered pursuant to the Cash Tender Offer. The cash
payment required to complete the Cash Tender Offer was U.S.$26,027,080. Acindar
also paid an aggregate of U.S.$2,002,083 as an Early Tender Payment in
connection with the Cash Tender Offer.
Acindar has also received notification from the creditors committee of its
satisfaction with respect to the progress of the restructuring negotiations to
date. In addition, the creditor banks have stated that the proposal for the
company's restructuring is in a position to be presented to their respective
credit committees for approval. If such approval is obtained, the parties would
be allowed to proceed with the preparation, negotiation and execution of the
definitive documentation related to the proposed restructuring.
It was in this favorable context for its proposed restructuring that Acindar, on
June 9, 2003, announced its intention to make certain payments to its creditors
in pesos and dollars as previously described in its March 25 press release. Such
payments permitted the company to reduce a significant portion of its debt in
pesos and to make certain payments on its dollar- denominated debt in advance of
a final restructuring plan.
The payments were as follows: (a) (i) an amount of Ps. 58,807,561 applied to the
cancellation of certain credits in pesos that have a total nominal value of
Ps. 86,997,107; (ii) an amount of U.S.$17,919,977 applied to the partial
cancellation of certain credits in dollars that correspond to debt that was
overdue on November 30, 2001 (plus accrued and unpaid interest on such debt) and
of the remainder of the dollar-denominated debt (excluding the Negotiable
Obligations due 2004) calculated at the original interest rate through November
30, 2001, and from December 1, 2001 through June 4, 2003, at a rate of 4% per
annum; and (iii) the amount of U.S.$6,795,261 applied to the cancellation of
accrued and unpaid interest on the Negotiable Obligations due 2004 (remaining
after completion of the Cash Tender Offer reffered to above) calculated at the
original interest rate through November 30, 2001, and from December 1, 2001
through June 4, 2003, at a rate of 4% per annum.
Schedule A
(million of Pesos restated to February 2003)
Income Statement
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(Consolidated Information) June June
2003 2002
Shipments (Tons)
Domestic Market 398.229 71,7% 272.859 61.3%
Export Market 157.226 28,3% 172.173 38.7%
Total 555.455 100,0% 445.032 100,0%
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Prices (Ps./Ton)
Domestic Market 1.223 995
Export Market 966 1.194
Average Price 1.150 1.072
------------------------------------------------------------------------------------------
EBITDA (in millions Ps.) 249,4 113,9
EBITDA / Ton (Ps./Ton) 448,8 255,9
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In Million Ps.
Net Sales 625,7 100% 471,1 100%
Cost of Sales (354,8) (56,7%) (292,3) (62,0%)
Gross Profit 270,9 43,3% 178,8 38,0%
Selling Expenses (12,5) (2,0%) (11,0) (2,3%)
Administration Expenses (11,2) (1,8%) (24,8) (5,3%)
Depreciation & Amortization (42,2) (6,7%) (55,8) (11,8%)
Other Expenses 2,1 0,3% (29,1) (6,2%)
Operating Income 207,1 33,1% 58,1 12,4%
Other Operating Income - Net 1,1 0,2% (4,0) (0,8%)
Long Term Investments Results 3,9 0,6% (4,0) (0,8%)
Financial & Holding Results 129,1 20,6% (695,5) (147,6%)
Loss before Income Tax 341,2 54,5% (645,4) (136,8%)
Income Tax and Tax on Minimum Notional 12,1 1,9% 22,9 4,9%
Income
Net Income / Loss 353,3 56,4% (622,5) (131,9%)
Schedule B
(million of Pesos restated to February 2003)
Balance Sheet
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(Consolidated Information)
June December
2003 2002
ASSETS
Current Assets
Cash & Investments 178,1 166,7
Accounts Receivables 123,5 191,6
Other Receivables 82,8 70,8
Inventories 188,2 159,4
Other Current Assets 2,5 4,4
Total Current Assets 575,1 592,9
Non-Current Assets
Fix Assets 828,4 893,8
Other Non-Current Assets 131,3 115,9
Total Non-Current Assets 959,7 1.009,7
TOTAL ASSETS 1.534,8 1.602,6
LIABILITIES
Current Liabilities
Accounts Payable 118,5 131,6
Loans 602,2 554,9
Other Current Liabilities 81,4 101,8
Total Current Liabilities 802,1 788,3
Non Current Liabilities
Loans 375,6 795,8
Other Non Current Liabilities 14,5 29,2
Total Non Current Liabilities 390,1 825,0
TOTAL LIABILITIES 1.192,2 1.613,3
TOTAL STOCHKHOLDERS EQUITY 342,6 (10,7)
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY 1.534,8 1.602,6
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: September 9, 2003 By: /s/ JORGE N. VIDELA
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Jorge N. Videla