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Vitro Reports increase of 2.4% in 2Q’12 EBITDA and Debt Reduction of 35.8%

Post Time:Nov 12,2013Classify:Industry NewsView:76

Vitro, S.A.B. de C.V., one of the world´s largest producers and distributors of glass products, today announced 2Q’12 unaudited results.Second Quarter 2012 Highlights During 2Q’12, Consolidated net sales increased 12.3 percent, when measured in pesos, benefited by an increase in higher value added Glass Containers sales, and a strong price-mix in both Glass Containers and Flat Glass. However, impacted by the 15.8 percent YoY peso depreciation (quarterly average), sales decreased 3.0 percent when measured in dollars, to US$447 million. Consolidated EBITDA rose 18.6 percent, when measured in pesos, driven by higher value added Glass Containers sales, lower natural gas prices and manufacturing efficiencies which resulted in higher fixed cost absorption, which more than offset the impact of the higher electricity costs resulting from the supply interruption caused by Tractebel’s incident reported in March, 2012. Measured in U.S. dollars, however, EBITDA increased by 2.4 percent YoY to US$85.9 million affected by the peso depreciation. Consolidated net debt decreased 35.8% YoY to US$1,000 million at the end of 2Q’12 reflecting the effect of the conclusion in Mexico of our debt restructuring process. During 2Q’12 Vitro recognized a US$55 million one-time non-operating loss as a result of the initiation of “Concurso” proceedings in the Commercial Courts of Madrid by its Spanish subsidiary, Vitro Cristalglass. Excluding this one-time loss, Vitro would have reported a US$18 million Net loss from continuing operations in 2Q12, principally reflecting the impact of the peso depreciation during this period.Commenting on the quarter’s performance, Mr. Hugo Lara, Chief Executive Officer, said: “We reported solid business growth this quarter, with consolidated revenues up 12.3 percent in the local currency. Measured in U.S. dollars, however, revenues were negatively affected by the 15.8 percent peso depreciation. EBITDA remained strong, driven by a better price mix and sales of higher value added products. Increased production levels and lower natural gas prices, one of our main inputs, resulted in better fixed cost absorption throughout our facilities, and also contributed to this performance. These factors more than offset the increase in electricity prices, particularly at Flat Glass, derived from the electricity and steam supply interruption caused by Tractebel’s incident last March.”“Cash balances remained stable, despite higher working capital investments to finance increased sales and inventory build-up, as well as interest payments on the new notes this quarter. Total Net Debt at the end of 2Q’12 declined by 35.8 percent to US$1,000 million, reflecting the effect of the conclusion in Mexico of our debt restructuring process. As a result, net debt to EBITDA improved to 2.9x from 4.3x in the year-ago period and average maturities were extended.” Mr. Lara continued.In terms of the restructuring process, Mr. Claudio Del Valle, Chief Restructuring Officer, commented: “On June 19, Vitro filed an appeal following the ruling by the U.S. Bankruptcy Court denying the enforcement in the U.S. of Vitro’s Mexican court-approved Concurso Plan. On July 16, 2012 the Temporary Restraining Order ordered by the U.S. Bankruptcy Court in Dallas, Texas was extended. This extension will allow the Company to continue to do business with its customers uninterrupted, during the pendency of the appeal or until further order by the Court.”Mr. Hugo Lara concluded, “We are very pleased with the operating results and the approval of our Concurso process in Mexico and remain focused on providing efficient service to our clients and to protecting the interests of our shareholders, suppliers, creditors and customers with whom we maintain long and productive business relationships by continuing to show solid operating results. We also remain optimistic about having the appeal process resolved in due course.”Click here to see the full report with all figures and facts. 30.07.2012, Vitro, S.A.B. de C.V./vitro.com

Source: http://www.glassglobal.com/news/vitro_reports_increase_of_24_in_2q12_ebitda_and_debt_reduction_of_358-20687.htmlAuthor:

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