SAN PEDRO GARZA GARCIA, Mexico, Oct. 26 /PRNewswire-FirstCall/ --
Vitro S.A.B. de C.V. (BMV: VITROA; NYSE: VTO) one of the world's
largest producers and distributors of glass products, today
announced 3Q'07 unaudited results. Year over year consolidated net
sales increased 7.1 percent and EBITDA declined US$11 million or
10.5 percent. The consolidated EBITDA margin declined 280 basis
points to 14.1 percent due to disruptions in production as a result
of the failure in natural gas supply caused by two incidents at
PEMEX pipelines. Excluding this effect, EBITDA for the quarter rose
1 percent to US$106 million. FINANCIAL HIGHLIGHTS* 3Q'07 3Q'06 %
Change Consolidated Net Sales 665 621 7.1% Glass Containers 339 326
4.2% Flat Glass 318 286 11.1% Cost of Sales 483 446 8.2% Gross
Income 182 175 4.4% Gross Margins 27.4% 28.1% -0.7 pp SG&A 129
118 10.0% SG&A % of sales 19.5% 19.0% 0.5 pp EBIT 53 57 -7.1%
EBIT Margins 7.9% 9.2% -1.3 pp EBITDA 94 105 -10.5% Glass
Containers 66 75 -12.2% Flat Glass 31 29 6.1% EBITDA Margins 14.1%
16.9% -2.8 pp Net Income (3) 8 - Net Income Margins -0.5% 1.3% -2
pp Total Debt 1,382 1,209 14.3% Short Term Debt 80 492 -83.7% Long
Term Debt 1,302 717 81.6% Average life of debt 7.1 3.5 Cash &
Cash Equivalents(1) 173 77 125.8% Total Net Debt 1,209 1,132 6.8% *
Million US$ Nominal (1) Cash & Cash Equivalents include
restricted cash which corresponded to cash collateralizing debt and
derivatives instruments accounted for in other current assets. As
of 3Q'07, the restricted cash includes US$34 million deposited in a
trust to repay debt and interests. Commenting on the results for
the quarter, Federico Sada, Chief Executive Officer, said "This was
another solid quarter with a strong performance at both Glass
Containers and Flat Glass. In fact, excluding the impact of the
interruption in natural gas supply in July and September,
comparable consolidated EBITDA reached an all-time high." "Our
Glass Containers operations also posted record EBITDA during the
quarter, excluding the effect of the disruption in operations," he
continued. Mr. Enrique Osorio, Chief Financial Officer, noted that
"very quick response from the Vitro team and our energy suppliers,
coupled with increased efficiencies and capacity utilization
reduced the impact from both incidents limiting the total net
effect to approximately US$12 million for Glass Containers and Flat
Glass." "To avoid future disruptions, we have installed a backup
system in all of our containers manufacturing facilities in Mexico
that will allow us to maintain the integrity of our furnaces. We
are now in the process of implementing additional preventive
measures at these facilities to avoid similar gas related
production interruptions in the future. We also remain focused on
continuing to pursue increased efficiencies and capacity
utilization to partially offset this negative impact before
year-end." "At Flat Glass, we are pleased to report a 6.1 percent
year-over-year increase in EBITDA. This is the third consecutive
quarter of EBITDA growth and on a comparable basis, the highest
EBITDA recorded since 4Q'04, despite the approximately US$0.4
million impact from the effect of the interruption in natural gas
supply at two automotive glass production facilities in September.
This quarter, auto glass sales increased both for AGR and OEM.
Sales growth to the OEM market reflected our strategy to increase
sales of value added products and diversify our client base by
focusing on Japanese manufacturers, with strong sales volume for
the Nissan Sentra platform." "We are pleased with the progress
achieved as we continue to establish new EBITDA records. Going
forward, we will continue to pursue our short term strategy that
focuses on the move to value added products in flat glass and to
build on the strengths of a strong established position, production
flexibility and fast time to market to cater to profitable niche
glass container markets while maintaining our leadership in the
Mexican mass market," Mr. Osorio closed. All figures provided in
this announcement are in accordance with Mexican Financial
Reporting Standards (MFRS) issued by the Mexican Board for Research
and Development of Financial Reporting Standards (CINIF), except
otherwise indicated. Dollar figures are in nominal US dollars and
are obtained by dividing nominal pesos for each month by the end of
month fix exchange rate published by Banco de Mexico. In the case
of the Balance Sheet, US dollar translations are made at the fix
exchange rate as of the end of the period. Certain amounts may not
sum due to rounding. All figures and comparisons are in US dollar
terms, unless otherwise stated, and may differ from the peso
amounts due to the difference between inflation and exchange rates.
Sep-07 Sep-06 Inflation in Mexico Quarter 1.6 % 1.8 % LTM 3.8 % 4.1
% Inflation in USA Quarter 0.3 % 0.7 % LTM 2.7 % 3.8 % Exchange
Rate Closing 10.9243 10.9935 Devaluation Quarter 1.2 % -2.5 % LTM
-0.6 % 1.9 % This announcement contains historical information,
certain management's expectations, estimates and other
forward-looking information regarding Vitro, S.A.B. de C.V. and its
Subsidiaries (collectively the "Company"). While the Company
believes that these management's expectations and forward looking
statements are based on reasonable assumptions, all such statements
reflect the current views of the Company with respect to future
events and are subject to certain risks and uncertainties that
could cause actual results to differ materially from those
contemplated in this report. Many factors could cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements that may be expressed or implied by such
forward-looking statements, including, among others, changes in
general economic, political, governmental and business conditions
worldwide and in such markets in which the Company does business,
changes in interest rates, changes in inflation rates, changes in
exchange rates, the growth or reduction of the markets and segments
where the Company sells its products, changes in raw material
prices, changes in energy prices, particularly gas, changes in the
business strategy, and other factors. Should one or more of these
risks or uncertainties materialize, or should the underlying
assumptions prove incorrect, actual results may vary materially
from those described herein as anticipated, believed, estimated or
expected. The Company does not assume any obligation, to and will
not update these forward-looking statements. The assumptions, risks
and uncertainties relating to the forward-looking statements in
this report include those described in the Company's annual report
in form 20-F file with the U.S. Securities and Exchange Commission,
and in the Company's other filings with the Mexican Comision
Nacional Bancaria y de Valores. This report on Form 6-K is
incorporated by reference into the Registration Statement on Form
F-4 of Vitro, S.A.B. de C.V. (Registration Number 333-144726).
SPECIAL NOTE REGARDING NON-GAAP FINANCIAL MEASURES A body of
generally accepted accounting principles is commonly referred to as
"GAAP". A non-GAAP financial measure is generally defined by the
SEC as one that purports to measure historical or future financial
performance, financial position or cash flows but excludes or
includes amounts that would not be so adjusted in the most
comparable U.S. GAAP measure. We disclose in this report certain
non-GAAP financial measures, including EBITDA. EBITDA for any
period is defined as consolidated net income (loss) excluding (i)
depreciation and amortization, (ii) non-cash items related to
pension liabilities, (iii) total net comprehensive financing cost
(which is comprised of net interest expense, exchange gain or loss,
monetary position gain or loss and other financing costs and
derivative transactions), (iv) other expenses, net, (v) income tax
and statutory employee profit sharing, (vi) provision for employee
retirement obligations, (vii) cumulative effect of change in
accounting principle, net of tax and (viii) (income) loss from
discontinued operations. In managing our business we rely on EBITDA
as a means of assessing our operating performance and a portion of
our management's compensation and employee profit sharing plan is
linked to EBITDA performance. We believe that EBITDA can be useful
to facilitate comparisons of operating performance between periods
and with other companies because it excludes the effect of (i)
depreciation and amortization, which represents a non-cash charge
to earnings, (ii) certain financing costs, which are significantly
affected by external factors, including interest rates, foreign
currency exchange rates and inflation rates, which have little or
no bearing on our operating performance, (iii) income tax and tax
on assets and statutory employee profit sharing, which is similar
to a tax on income and (iv) other expenses or income not related to
the operation of the business. EBITDA is also a useful basis of
comparing our results with those of other companies because it
presents operating results on a basis unaffected by capital
structure and taxes. We also calculate EBITDA in connection with
covenants related to some of our financings. We believe that EBITDA
enhances the understanding of our financial performance and our
ability to satisfy principal and interest obligations with respect
to our indebtedness as well as to fund capital expenditures and
working capital requirements. EBITDA is not a measure of financial
performance under U.S. GAAP or Mexican FRS. EBITDA should not be
considered as an alternate measure of net income or operating
income, as determined on a consolidated basis using amounts derived
from statements of operations prepared in accordance with Mexican
FRS, as an indicator of operating performance or as cash flows from
operating activity of as a measure of liquidity. EBITDA has
material limitations that impair its value as a measure of a
company's overall profitability since it does not address certain
ongoing costs of our business that could significantly affect
profitability such as financial expenses and income taxes,
depreciation, pension plan reserves or capital expenditures and
associated charges. The EBITDA presented herein relates to Mexican
FRS, which we use to prepare our consolidated financial statements.
This EBITDA calculation is expressly permitted by the Mexican
regulators that establish the accounting principles generally
accepted for use in such financial statements. Vitro, S.A.B. de
C.V. (NYSE: VTO; BMV: VITROA), through its subsidiary companies, is
one of the world's leading glass producers. Vitro is a major
participant in two principal businesses: flat glass and glass
containers. Its subsidiaries serve multiple product markets,
including construction and automotive glass; food and beverage,
wine, liquor, cosmetics and pharmaceutical glass containers. Vitro
also produces raw materials, equipment and capital goods for
industrial use, which are vertically integrated in the Glass
Containers business unit. Founded in 1909 in Monterrey,
Mexico-based Vitro has joint ventures with major world-class
partners and industry leaders that provide its subsidiaries with
access to international markets, distribution channels and
state-of-the-art technology. Vitro's subsidiaries have facilities
and distribution centers in nine countries, located in North,
Central and South America, and Europe, and export to more than 40
countries worldwide. For further information, please visit our
website at: http://www.vitro.com/ Third Quarter 2007 results
Conference Call and Web cast Monday, October 29, 2007 11:00 AM U.S.
EDT - 9:00 A.M. Monterrey time A live web cast of the conference
call will be available to investors and the media at
http://www.vitro.com/. A replay of the web cast will be available
through the end of the day on November 29, 2007. For inquiries
regarding the conference call, please contact Maura Gedid of
Breakstone Group via telephone at (646) 452-2335, or via email at .
Consolidated Results Sales Consolidated net sales for 3Q'07
increased 7.1 percent YoY to US$665 million from US$621 million
last year. For LTM 2007, consolidated net sales rose 6.5 percent to
US$2,510 million from US$2,357 in LTM 2006. Glass Containers sales
for the quarter rose YoY by 4.2 percent while Flat Glass sales grew
11.1 percent over the same time period. During the quarter
domestic, export and foreign subsidiaries' sales increased 2.7
percent, 15.6 percent and 7.4 percent YoY respectively Table 1:
Total Sales Table 1 Sales (Million) YoY% YoY% 3Q'07 3Q'06 Change
9M'07 9M'06 Change Constant Pesos Total Consolidated Sales 7,321
7,076 3.5 21,066 20,616 2.2 Glass Containers 3,739 3,703 1.0 10,859
10,303 5.4 Flat Glass 3,497 3,270 6.9 9,949 10,015 (0.7) Domestic
Sales 3,128 3,103 0.8 8,856 8,778 0.9 Export Sales 1,722 1,536 12.1
5,011 4,880 2.7 Foreign Subsidiaries 2,471 2,437 1.4 7,199 6,959
3.5 Nominal Dollars Total Consolidated Sales 665 621 7.1 1,901
1,793 6.1 Glass Containers 339 326 4.2 980 899 9.0 Flat Glass 318
286 11.1 898 868 3.5 Domestic Sales 283 275 2.7 800 766 4.4 Export
Sales 157 135 15.6 453 427 6.1 Foreign Subsidiaries 226 210 7.4 649
600 8.2 % Foreign Currency Sales* / Total Sales 57% 56% 1.8 pp 58%
57% 0.7 pp % Export Sales / Total Sales 24% 22% 1.7 pp 24% 24% 0 pp
* Exports + Foreign Subsidiaries LTM YoY% 2007 2006 Change Constant
Pesos Total Consolidated Sales 27,913 27,151 2.8 Glass Containers
14,400 13,298 8.3 Flat Glass 13,125 13,449 (2.4) Domestic Sales
11,779 11,553 2.0 Export Sales 6,464 6,489 (0.4) Foreign
Subsidiaries 9,670 9,110 6.1 Nominal Dollars Total Consolidated
Sales 2,510 2,357 6.5 Glass Containers 1,296 1,160 11.7 Flat Glass
1,179 1,162 1.5 Domestic Sales 1,062 1,010 5.2 Export Sales 582 567
2.7 Foreign Subsidiaries 865 780 10.9 % Foreign Currency Sales* /
Total Sales 58% 57% 0.6 pp % Export Sales / Total Sales 23% 24%
-0.8 pp * Exports + Foreign Subsidiaries EBIT and EBITDA
Consolidated EBIT for the quarter decreased 7.1 percent YoY to
US$53 million from US$57 million last year. EBIT margin decreased
130 basis points to 7.9 percent from 9.2 percent. On a LTM basis,
consolidated EBIT increased 17.3 percent to US$208 million from
US$177 million in LTM 2006. During this same period of time, EBIT
margin increased 80 basis points to 8.3 percent from 7.5 percent.
EBIT for the quarter at Glass Containers decreased by 12.3 percent
YoY, while at Flat Glass EBIT rose 47.7 percent. Consolidated
EBITDA for the quarter decreased 10.5 percent to US$94 million from
US$105 million in 3Q'06. The EBITDA margin decreased 280 basis
points YoY to 14.1 percent from 16.9 percent. On a LTM basis,
consolidated EBITDA increased 4.4 percent to US$384 million from
US$368 million in LTM 2006. During the quarter, EBITDA at Glass
Containers declined 12.2 percent YoY to US$66 million from US$75
million while EBITDA at Flat Glass increased 6.1 percent YoY to
US$31 million from US$29 million. For details on both business
units please refer to page 12 and 13, respectively. Table 2: EBIT
and EBITDA Table 2 EBIT and EBITDA (Million) YoY% YoY% 3Q'07 3Q'06
Change 9M'07 9M'06 Change Constant Pesos Consolidated EBIT 583 650
(10.3) 1,797 1,564 14.9 Margin 8.0% 9.2% -1.2 pp 8.5% 7.6% 0.9 pp
Glass Containers 446 524 (14.9) 1,363 1,340 1.7 Flat Glass 208 147
40.9 539 28 92.7 Consolidated EBITDA 1,039 1,199 (13.3) 3,218 3,199
0.6 Margin 14.2% 16.9% -2.7 pp 15.3% 15.5% -0.2 pp Glass Containers
728 855 (14.9) 2,244 2,341 (4.1) Flat Glass 336 331 1.6 955 815
17.2 Nominal Dollars Consolidated EBIT 53 57 (7.1) 162 135 20.2
Margin 7.9% 9.2% -1.3 pp 8.5% 7.5% 1 pp Glass Containers 40 46
(12.3) 123 116 5.9 Flat Glass 19 13 47.7 49 24 104.8 Consolidated
EBITDA 94 105 (10.5) 290 277 4.7 Margin 14.1% 16.9% -2.8 pp 15.3%
15.5% -0.2 pp Glass Containers 66 75 (12.2) 202 203 (0.4) Flat
Glass 31 29 6.1 86 70 22.7 LTM YoY% 2007 2006 Change Constant Pesos
Consolidated EBIT 2,309 2,052 12.6 Margin 8.3% 7.6% 0.7 pp Glass
Containers 1,854 1,617 14.6 Flat Glass 657 465 41.3 Consolidated
EBITDA 4,275 4,248 0.6 Margin 15.3% 15.6% -0.3 pp Glass Containers
3,052 2,966 2.9 Flat Glass 1,256 1,170 7.4 Nominal Dollars
Consolidated EBIT 208 177 17.3 Margin 8.3% 7.5% 0.8 pp Glass
Containers 167 140 18.9 Flat Glass 59 39 49.8 Consolidated EBITDA
384 368 4.4 Margin 15.3% 15.6% -0.3 pp Glass Containers 275 258 6.5
Flat Glass 113 100 12.2 Consolidated Financing Result Consolidated
financing result for the quarter increased 49.0 percent YoY to
US$38 million compared with US$25 million during 3Q'06. This was
driven by a non-cash foreign exchange loss of US$12 million
compared with a non-cash foreign exchange gain of US$17 million
during 3Q'06. During 3Q'07, the Mexican peso experienced a 1.2
percent depreciation compared with a 2.5 percent appreciation in
the same period last year. This situation was partially compensated
by lower other financial expenses of US$6 million compared with
US$20 million during 3Q'06 as a result of higher value in
derivative transactions coupled with a US$4 million reduction in
interest expense, reflecting a reduction in interest rate related
with the refinancing done at the beginning of the year. On a LTM
basis, total consolidated financing result decreased 33.5 percent
YoY to US$138 million from US$208 million driven by a combination
of favorable factors: a US$34 million decrease in other financial
expenses due to higher value in derivative transactions during this
year; a non-cash foreign exchange gain of US$4 million compared
with a non-cash foreign exchange loss of US$15 million during LTM
2006 driven by a 0.6 percent appreciation experienced by the
Mexican peso in LTM 2007 compared with a 1.9 percent depreciation
in the same period last year; lower interest expense of US$151
million compared with US$165 million, as a result of lower interest
rate; and higher interest income of US$18 million during LTM 2007
compared with US$14 million during the same period last year. Table
3: Total Financing Result Table 3 Total Financing Result (Million)
YoY% YoY% 3Q'07 3Q'06 Change 9M'07 9M'06 Change Constant Pesos
Interest Expense (414) (470) (11.8) (1,291) (1,393) (7.3) Interest
Income 40 40 1.0 162 94 73.0 Other Financial Expenses* (65) (229)
(71.4) (457) (728) (37.2) Foreign Exchange Loss (135) 196 -- (89)
(345) (74.1) Monetary Position (Loss) 152 175 (13.4) 291 298 (2.2)
Total Financing Result (422) (288) 46.7 (1,384) (2,074) (33.3)
Nominal Dollars Interest Expense (37) (41) (8.8) (116) (121) (3.9)
Interest Income 4 3 4.9 15 8 80.1 Other Financial Expenses* (6)
(20) (71.1) (41) (64) (35.0) Foreign Exchange Loss (12) 17 -- (7)
(29) (75.1) Monetary Position (Loss) 14 15 (10.4) 26 26 (0.9) Total
Financing Result (38) (25) 49.0 (124) (179) (30.7) * Includes
derivative transactions and interest related to factoring
transactions LTM YoY% 2007 2006 Change Constant Pesos Interest
Expense (1,682) (1,897) (11.3) Interest Income 201 155 29.2 Other
Financial Expenses* (529) (931) (43.1) Foreign Exchange Loss 35
(191) -- Monetary Position (Loss) 427 457 (6.4) Total Financing
Result (1,548) (2,407) (35.7) Nominal Dollars Interest Expense
(151) (165) (8.4) Interest Income 18 14 33.9 Other Financial
Expenses* (48) (82) (41.2) Foreign Exchange Loss 4 (15) -- Monetary
Position (Loss) 38 40 (4.8) Total Financing Result (138) (208)
(33.5) * Includes derivative transactions and interest related to
factoring transactions Taxes On a LTM basis, total income tax
increased from a gain of US$7 million in 2006 to an expense of
US$48 million in 2007. During LTM 2006, the Company recorded a
deferred income tax gain due to the tax loss related to the sale of
Vitrocrisa's shares in June 2006. Accrued income tax, which
includes tax on assets, for LTM ended September 30, 2007, increased
by US$1 million when compared with the same period ended September
30, 2006, due to higher taxable profits mainly in our European
operations. Table 4: Taxes Table 4 Taxes (Million) YoY% YoY% 3Q'07
3Q'06 Change 9M'07 9M'06 Change Constant Pesos Accrued Income Tax
50 24 103.6 137 161 (15.2) Deferred Income Tax (gain) 38 167 (77.4)
70 (257) -- Total Income Tax 87 192 (54.4) 207 (95) -- Nominal
Dollars Accrued Income Tax 5 2 109.1 12 14 (10.9) Deferred Income
Tax (gain) 4 15 (75.7) 7 (21) -- Total Income Tax 8 17 (51.8) 19
(7) -- LTM YoY% 2007 2006 Change Constant Pesos Accrued Income Tax
149 141 6.1 Deferred Income Tax (gain) 375 (236) -- Total Income
Tax 524 (96) -- Nominal Dollars Accrued Income Tax 13 12 13.1
Deferred Income Tax (gain) 34 (19) -- Total Income Tax 48 (7) --
Consolidated Net Loss During 3Q'07 the Company recorded a
consolidated net loss of US$3 million compared to a net income of
US$8 million during the same period last year. This variation is
mainly the result of a US$12 million increase in financing costs
due to a non-cash foreign exchange loss compared with a non-cash
foreign exchange gain in 3Q'06 as well as higher other expenses of
US$11 million, mainly derived from an impairment charge associated
with the acquisition of the additional 50 percent stake in Vitro
AFG and losses related to the sale of fixed assets, compared to
other expenses of US$5 million in the same quarter last year. In
addition, the Company recorded lower EBIT of US$53 million compared
with US$57 in the third quarter last year mainly as a result of the
natural gas disruptions occurred during the months of July and
September 2007. The above mentioned factors were partially
compensated by lower income tax of US$8 million during the quarter
compared to US$17 million in the third quarter of 2006. Capital
Expenditures (CapEx) Capital expenditures for the quarter totaled
US$53 million, compared with US$21 million in 3Q'06. Glass
Containers represented 82 percent of total capex consumption and
included investment in the final stage of a major furnace repair, a
new glass containers production line, the transfer of Vidriera
Mexico's ("Vimex") facilities to Toluca, inspection equipment and
maintenance. Flat Glass accounted for 17 percent and was mainly
invested in maintenance as well as in capacity increase and
equipment upgrade in Vitro America and Cristalglass, Vitro's Flat
Glass subsidiaries in the US and Spain respectively. Consolidated
Financial Position Net debt, which is calculated by deducting cash
and cash equivalents as well as restricted cash accounted for in
current and other long term assets, increased QoQ by US$48 million
to US$1,209. On a YoY comparison, net debt increased US$77 million.
As of 3Q'07, the Company had a cash balance of US$173 million, of
which US$135 million was recorded as cash and cash equivalents and
US$38 million was classified as other current assets. The US$38
million is restricted cash, which is composed of cash
collateralizing debt and cash deposited in a trust to repay debt
and interests on the covenant defeasance of the VENA Senior Notes
due 2011. Cash collateralizing debt corresponds to US$4 million
recorded at Flat Glass and the cash deposited in a trust to repay
debt and interests corresponds to US$34 million recorded at Glass
Containers. Consolidated gross debt as of September 30, 2007
totaled US$1,382 million, a QoQ increase of US$9 million and a YoY
increase of US$173 million. As of 3Q'07, consolidated short-term
debt includes US$30 million associated with the covenant defeasance
of the Senior Notes due 2011 at VENA. Without the effect of the
failure in natural gas supply, total debt to EBITDA is 3.4 times
and total net debt to EBITDA is 3.0 times. Table 5 Debt Indicators
(Million dollars; except as indicated) 3Q'07 2Q'07 1Q'07 4Q'06
3Q'06 Interest Coverage (EBITDA/ Total Net Financial Exp.) (Times)
LTM 2.1 2.0 2.0 1.7 1.6 Leverage (Total Debt / EBITDA) (Times) LTM
3.5 3.4 3.6 3.0 3.2 (Total Net Debt / EBITDA) (Times) LTM 3.1 3.0
2.7 2.7 3.1 Total Debt 1,382 1,373 1,466 1,141 1,209 Short-Term
Debt(1) 80 45 147 32 492 Long-Term Debt 1,302 1,328 1,319 1,109 717
Cash and Equivalents(2) 173 212 380 113 77 Total Net Debt 1,209
1,161 1,086 1,027 1,132 Currency Mix (%) dlls&Euros/Pesos /
UDI's 98/2/0 98/2/0 96/2/2 94/6/090/6/4 (1) 3Q'07 short term debt
includes US$30 million associated with the covenant defeasance of
the Senior Notes due 2011 at VENA. The required cash is recorded as
restricted cash. On July 23, 2008 the restricted cash will be freed
from the trust and will be used to pay down the outstanding
balance. (2) Cash & Cash Equivalents include restricted cash
which corresponded to cash collateralizing debt and derivative
instruments accounted for in current and other long term assets. As
of 3Q'07, the restricted cash includes US$34 million deposited in a
trust to repay debt and interests (see note 1). -- The Company's
average life of debt as of 3Q'07 was 7.1 years compared with 3.5
years for 3Q'06. -- Short term debt as of September 30, 2007,
decreased by US$412 million to 6 percent as a percentage of total
debt, compared with 41 percent in 3Q'06. -- Revolving debt,
including trade-related debt, accounted for 54 percent of total
short-term debt. This type of debt is usually renewed within 28 to
180 days. -- Current maturities of long-term debt, including
current maturities of market debt, decreased by US$222 million to
US$37 million from US$259 million as of September 30, 2006. As of
3Q'07 current maturities of long-term debt represented 46 percent
of short-term debt. -- As of September 30, 2007 Vitro had an
aggregate of US$137 million in off-balance sheet financing related
to sales of receivables and receivable securitization programs.
Flat Glass recorded US$70 million and Glass Containers recorded
US$67 million. -- Maturities for 2007 only include Credit
Facilities at the subsidiary level. -- Maturities from 2008 and
thereafter include, among others, long-term "Certificados
Bursatiles," the covenant defeasance of the VENA Senior Notes due
2011 to be paid in 2008, the Senior Notes due in 2012, Senior Notes
due in 2013 and Senior Notes due in 2017 at the Holding Company
level. Cash Flow Cash flow before capex and dividends increased
16.5 percent to US$46 million from US$40 million in 3Q'06. The
increased cash flow coupled with available cash was used to fund
the US$53 million in capex investments compared with US$21 million
in 3Q'06. On a LTM basis, the Company generated US$165 million of
cash flow before capex and dividends which represents an 11.5
percent increase when compared with the same period last year. The
main drivers behind the increase were higher EBITDA and significant
lower net interest expense. This cash flow coupled with available
cash was used to fund the US$211 million capex investments, which
in part was used to increase capacity at Glass Containers to
satisfy higher demand from our customers. Table 6: Cash Flow
Analysis Table 6 Cash Flow from Operations Analysis(1) (Million)
YoY% YoY% 3Q'07 3Q'06 Change 9M'07 9M'06 Change Constant Pesos
EBITDA 1,039 1,199 (13.3) 3,218 3,199 0.6 Net Interest
Expense(2),(3) (398) (604) (34.1) (1,207) (1,715) (29.6) Working
Capital(4) (2) (57) (96.2) (279) (206) 35.6 Cash Taxes (paid)
recovered(5) (128) (88) 45.4 (337) (127) 164.6 Cash Flow before
Capex and Dividends 511 450 13.6 1,394 1,150 21.2 Capex (584) (235)
148.9 (1,904) (798) 138.6 Dividends (37) (12) 210.5 (208) (160)
30.0 Net Free Cash Flow (109) 204 -- (719) 191 -- Nominal Dollars
EBITDA 94 105 (10.5) 290 277 4.7 Net Interest Expense(2),(3) (36)
(54) (33.7) (109) (150) (27.5) Working Capital(4) (0) (4) (86.9)
(26) (18) 45.1 Cash Taxes (paid) recovered(5) (12) (8) 49.2 (30)
(11) 180.6 Cash Flow before Capex and Dividends 46 40 16.5 125 98
27.2 Capex (53) (21) 157.1 (172) (69) 148.7 Dividends (3) (1) 235.6
(19) (13) 39.8 Net Free Cash Flow (10) 18 -- (66) 16 -- LTM YoY%
2007 2006 Change Constant Pesos EBITDA 4,275 4,248 0.6 Net Interest
Expense(2),(3) (1,959) (2,257) (13.2) Working Capital(4) (176) (11)
1,494.0 Cash Taxes (paid) recovered(5) (286) (264) 8.0 Cash Flow
before Capex and Dividends 1,854 1,716 8.0 Capex (2,337) (1,095)
113.5 Dividends (208) (166) 25.5 Net Free Cash Flow (692) 455 --
Nominal Dollars EBITDA 384 368 4.4 Net Interest Expense(2),(3)
(173) (198) (12.5) Working Capital(4) (21) 0 -- Cash Taxes (paid)
recovered(5) (26) (23) 12.9 Cash Flow before Capex and Dividends
165 148 11.5 Capex (211) (95) 121.6 Dividends (19) (14) 34.7 Net
Free Cash Flow (65) 39 -- (1) This statement is a Cash Flow
statement and it does not represent a Statement of Changes in
Financial Position according with Mexican Financial Reporting
Standards (MFRS) (2) Includes derivative transactions, and other
financial expenses and products. Includes interest rate swap
transaction in which Vitro pays variable peso rates on a monthly
basis and receives semi-annual payments of fixed dollar rate (3)
1Q'07 does not include additional interests and transaction fees
associated with the debt refinancing completed at the beginning of
year 2007. (4) Includes: Clients, inventories, suppliers, other
current assets and liabilities, IVA (Value Added Tax) and ISCAS
taxes (Salary Special Tax) (5) Includes PSW (Profit Sharing to
Workers) Key Developments Vitro's production facilities started
operations after a temporary interruption due to an external
failure of natural gas supply On September 17, 2007 the Company
announced that the natural gas supply was totally restored at its
five glass containers and two automotive glass production
facilities. Operations at these manufacturing facilities had been
temporarily interrupted for 7 days as a result of a failure in
natural gas supply caused by recent incidents at some of PEMEX gas
pipelines in the state of Veracruz. In order to increase its
ability to in the future deal with this kind of events, the Company
is working to finalize the implementation of preventive measures at
its facilities, which should allow the Company to keep operating at
normal levels, in case of a temporary failure of natural gas
supply. Vitro Announces Completion of Its Offer to Exchange Notes
On September 7, 2007 the Company announced that it had completed
its offer to exchange up to US$1.0 billion of senior notes. As
announced on August 8, 2007, the exchange offer commenced on August
8, 2007 and expired at 11:59 p.m., New York City time, on September
6, 2007. 99.3 percent of the US$ 1.0 billion senior notes were
exchanged. In addition, on October 3, 2007, both the original notes
and the registered exchange notes were listed on the Luxembourg
Stock Exchange. Vitro Transaction to Increase Ownership Stake in
Vitro AFG to 100 Percent has been approved by the Mexican Federal
Antitrust Authorities On August 27, 2007 the Company announced that
the transaction to acquire in its entirety all the capital stock of
the Mexican company Vitro AFG, S.A. de C.V. (Vitro AFG) by Vitro's
subsidiary Vimexico, S.A. de C.V. (Vimexico), has been approved by
the Mexican Federal Antitrust Authorities. As announced on July 24,
2007, the Company exercised its right to purchase its partner AFG
Industries Inc. 50 percent stake for US$6 million. Vitro AFG owns a
float glass manufacturing facility located in Mexicali, Baja
California, Mexico. Vitro AFG was a 50/50 joint venture between
Vimexico and AFG Industries, a subsidiary of the Japanese company
Asahi Glass Co. Limited. The joint venture was established to
supply the United States and Mexican construction markets with a
wide range of flat glass products, from the traditional 2 mm clear
glass to 12 mm thick glass. The joint venture began operations on
November 18, 2003 with a co-investment of approximately US$100
million. With this acquisition, Vitro has 3 float manufacturing
facilities and 23 processing plants previously owned in Mexico,
United States, Colombia, Spain and Portugal. Vitro AFG is part of
Vitro's Flat Glass business unit focused on the manufacturing,
processing and distribution of flat glass for the construction and
automotive industry with annual sales in 2006 of US$1,176 million.
Vitro's Flat Glass business unit is the largest flat glass producer
in Mexico and an important player in Latin America, United States
and Europe. Vitro AFG employs 230 people and manufactures 155,000
tons per year of float glass for the construction market. Vitro's
two glass containers plants started operations after a temporary
interruption due to a failure of natural gas supply On July 15,
2007 the Company announced that its glass container production
facilities located in Queretaro and Guadalajara restarted
operations on Friday, July 13 and Saturday July 14, 2007,
respectively. Operations at both plants had been temporarily
interrupted, Guadalajara for 7 days and Queretaro for 4 days, as a
result of a failure in natural gas supply caused by recent
incidents at some of PEMEX gas pipelines. The negative impact on
EBITDA was limited to US$3.7 million. The lower than expected
impact reflects the quick response of our team and of PEMEX staff,
Tractebel and LP gas suppliers. Organizational Changes at Glass
Containers On July 2, 2007 the Company announced that Alfonso Gomez
Palacio, President of the Glass Containers business unit, retired
on June 30, 2007 after an outstanding 23 year career and
performance at Vitro. David Gonzalez Morales assumed the
responsibility of President of the Glass Containers business unit
as of July 1st. 2007. The Company's management is certain that the
experience acquired by David during his 27 tenure at Vitro will
allow him to succeed in his new responsibility. During this time,
David has occupied diverse positions at Vitro. For the past six
months David has served as Glass Containers' Co-President. Before
that, he was President of Vitro Cristalglass' business unit at Flat
Glass. He has also held different positions at the Glass Containers
and Diverse Industries business units, as well as advisory role
positions at Vitro's joint venture companies including Vitro PQ,
Vancan, Ampolletas and Regioplast. Glass Containers (52 percent of
LTM 2007 Consolidated Sales) Sales Sales increased 4.2 percent YoY
to US$339 million from US$326 million and were largely affected by
the natural gas disruptions occurred during the months of July and
September 2007. The main drivers behind the 2.2 percent YoY
increase in domestic sales was an improved price mix in the CFT
(Cosmetics, Fragrances & Toiletries), beer and food segments
coupled with higher volumes in the wine & liquor segment.
Export sales increased 9.8 percent due to an improved price mix in
the food, CFT, soft drinks and wine & liquor segments coupled
with higher volumes in the wine & liquor market. Sales from
Glass Containers' foreign subsidiaries rose 1.7 percent YoY driven
by increased demand in Central and South American markets. EBIT and
EBITDA EBIT for the quarter decreased 12.3 percent YoY to US$40
million from US$46 million in 3Q'06. EBITDA for the same period
fell 12.2 percent to US$66 million from US$75 million. The EBITDA
decline was the result of a series of temporary production
interruptions at certain glass containers facilities in Mexico.
This situation was the consequence of the failure in natural gas
supply caused by incidents occurred during the months of July and
September at some of PEMEX gas pipelines. Without the effect of the
failure in natural gas supply, EBITDA rose 3.2 percent for the
quarter to US$77 million and was up 5.2 percent for the 9M'07 to
US$214 million. EBITDA from Mexican glass containers operations,
which is VENA's core business and represents approximately 82
percent of total EBITDA, decreased 10 percent YoY due to the above
mentioned factors. Table 7: Glass Containers Table 7 Glass
Containers (Million) YoY% YoY% 3Q'07 3Q'06 Change 9M'07 9M'06
Change Constant Pesos Consolidated Net sales 3,739 3,703 1.0 10,859
10,303 5.4 Net Sales Domestic Sales 2,136 2,157 (1.0) 6,219 6,041
2.9 Exports 1,048 984 6.5 3,036 2,950 2.9 Foreign Subsidiaries 555
562 (1.3) 1,603 1,311 22.3 EBIT 446 524 (14.9) 1,363 1,340 1.7
EBITDA 728 855 (14.9) 2,244 2,341 (4.1) EBIT Margin 11.9 % 14.1 %
-2.2 pp 12.6 % 13.0 % -0.4 pp EBITDA Margin 19.5 % 23.1 % -3.6 pp
20.7 % 22.7 % -2 pp Nominal Dollars Consolidated Net sales 339 326
4.2 980 899 9.0 Domestic Sales 193 188 2.2 560 525 6.8 Export Sales
96 87 9.8 275 259 6.2 Foreign Subsidiaries 51 50 1.7 145 115 25.7
EBIT 40 46 (12.3) 123 116 5.9 EBITDA 66 75 (12.2) 202 203 (0.4)
EBIT Margin 11.9 % 14.1 % -2.2 pp 12.5 % 12.9 % -0.4 pp EBITDA
Margin 19.4 % 23.0 % -3.6 pp 20.6 % 22.6 % -2 pp Glass Containers
Domestic (Millions of Units) 1,214 1,311 (7.4) 3,635 3,656 (0.6)
Exports (Millions of Units) 338 340 (0.6) 990 1,005 (1.5) Total
1,552 1,651 (6.0) 4,625 4,661 (0.8) Capacity utilization (furnaces)
90 % 98 % -8 pp Alcali (Thousands Tons sold)* 163 155 5.0 473 474
(0.2) LTM YoY% 2007 2006 Change Constant Pesos Consolidated Net
sales 14,400 13,298 8.3 Net Sales Domestic Sales 8,204 7,853 4.5
Exports 3,992 3,752 6.4 Foreign Subsidiaries 2,204 1,693 30.2 EBIT
1,854 1,617 14.6 EBITDA 3,052 2,966 2.9 EBIT Margin 12.9 % 12.2 %
0.7 pp EBITDA Margin 21.2 % 22.3 % -1.1 pp Nominal Dollars
Consolidated Net sales 1,296 1,160 11.7 Domestic Sales 738 683 8.0
Export Sales 359 328 9.5 Foreign Subsidiaries 198 149 33.5 EBIT 167
140 18.9 EBITDA 275 258 6.5 EBIT Margin 12.9 % 12.1 % 0.8 pp EBITDA
Margin 21.2 % 22.2 % -1 pp Glass Containers Domestic (Millions of
Units) 4,868 4,723 3.1 Exports (Millions of Units) 1,328 1,305 1.8
Total 6,196 6,028 2.8 Capacity utilization (furnaces) Alcali
(Thousands Tons sold)* 634 628 1.0 * Includes sodium carbonate,
sodium bicarbonate, sodium chlorine, calcium chlorine Flat Glass
(47 percent of LTM 2007 Consolidated Sales) Sales Flat Glass sales
for the quarter increased 11.1 percent YoY to US$318 million from
US$286 million. Domestic sales increased 6.0 percent YoY, as result
of higher sales to the automotive segment mainly due to an increase
in volumes. Float glass sales remained relatively stable YoY as
they experienced a 1 percent increase due to a better price mix
which was partially offset by a 12 percent decline in volumes.
Export sales increased 26.1 percent YoY mainly due to higher
volumes in the construction-related and automotive business lines.
Automotive sales grew 13.8 percent YoY driven by higher sales both
in the Auto Glass Replacement ("AGR") and in the Original Equipment
Manufacturer ("OEM") markets. AGR sales increased mainly as a
result of higher export volumes coupled with a better product mix
in the domestic market while OEM sales increased as a result of
higher volumes, reflecting our strategy to increase sales of value
added products and diversify our client base by focusing on
Japanese manufacturers, with strong sales volume for the Nissan
Sentra platform. Sales from foreign subsidiaries rose 9.2 percent
YoY to US$175 million from US$160 million and maintained their
upward trend. Sales at Vitro Cristalglass, the Spanish subsidiary,
increased 32 percent YoY due to an improved product mix which is
the result of the stronger demand of more value added products from
the construction market. Sales at Vitro Colombia increased 39
percent compared with the same quarter last year due to higher
volumes linked to the strong demand from the Venezuelan and
Ecuadorian markets. EBIT & EBITDA EBIT increased 47.7 percent
YoY to US$19 million from US$13 million, while EBITDA increased 6.1
percent to US$31 million from US$29 million. During the same
period, EBIT margins grew 140 basis points while EBITDA margins
decreased 50 basis points. On a YoY comparison, the solid
performance from Vitro Cristalglass coupled with a better product
mix in the domestic float glass business line had a positive impact
on the EBIT and EBITDA generation and more than compensated higher
raw materials and freight costs as well as the approximately US$0.4
million effect of the natural gas disruption during September at
two automotive glass production facilities. In addition, enhanced
fixed-cost absorption due to improved capacity utilization at Vitro
Colombia also contributed to increase the EBITDA of this Business
Unit. Table 8: Flat Glass Table 8 Flat Glass (Million) YoY% YoY%
3Q'07 3Q'06 Change 9M'07 9M'06 Change Constant Pesos Consolidated
Net sales 3,497 3,270 6.9 9,949 10,015 (0.7) Net Sales Domestic
Sales 907 843 7.6 2,378 2,439 (2.5) Exports 674 552 22.1 1,975
1,929 2.4 Foreign Subsidiaries 1,916 1,875 2.2 5,596 5,647 (0.9)
EBIT 208 147 40.9 539 280 92.7 EBITDA 336 331 1.6 955 815 17.2 EBIT
Margin 5.9% 4.5% 1.4 pp 5.4% 2.8% 2.6 pp EBITDA Margin 9.6% 10.1%
-0.5 pp 9.6% 8.1% 1.5 pp Nominal Dollars Consolidated Net sales 318
286 11.1 898 868 3.5 Domestic Sales 83 78 6.0 216 216 0.4 Export
Sales 61 48 26.1 178 168 6.0 Foreign Subsidiaries 175 160 9.2 504
484 4.0 EBIT 19 13 47.7 49 24 104.8 EBITDA 31 29 6.1 86 70 22.7
EBIT Margin 5.9% 4.5% 1.4 pp 5.4% 2.7% 2.7 pp EBITDA Margin 9.6%
10.1% -0.5 pp 9.6% 8.1% 1.5 pp Volumes Flat Glass (Thousands of
m2R)(1) 34,624 31,661 9.4 98,918 99,726 (0.8) Capacity utilization
Flat Glass furnaces(2) 107% 112% -4.9 pp Flat Glass auto 81% 78%
3.1 pp LTM YoY% 2007 2006 Change Constant Pesos Consolidated Net
sales 13,125 13,449 (2.4) Net Sales Domestic Sales 3,187 3,294
(3.3) Exports 2,472 2,737 (9.7) Foreign Subsidiaries 7,466 7,418
0.7 EBIT 657 465 41.3 EBITDA 1,256 1,170 7.4 EBIT Margin 5.0% 3.5%
1.5 pp EBITDA Margin 9.6% 8.7% 0.9 pp Nominal Dollars Consolidated
Net sales 1,179 1,162 1.5 Domestic Sales 289 292 (0.7) Export Sales
222 239 (6.7) Foreign Subsidiaries 667 632 5.6 EBIT 59 39 49.8
EBITDA 113 100 12.2 EBIT Margin 5.0% 3.5% 1.5 pp EBITDA Margin 9.6%
8.7% 0.9 pp Volumes Flat Glass (Thousands of m2R)(1) 128,779
136,897 (5.9) (1) m2R = Reduced Squared Meters (2) Capacity
utilization may sometimes be greater than 100 percent because
pulling capacity is calculated based on a certain number of changes
in glass color & thickness, determined by historical
CONSOLIDATED VITRO, S.A.B. DE C.V. AND SUBSIDIARIES CONSOLIDATED
FINANCIAL STATEMENTS FOR THE PERIODS, (MILLION) Third Quarter
INCOME STATEMENT Constant Pesos Nominal Dollars Item 2007 2006 %
Var. 2007 2006 % Var. Consolidated Net Sales 7,321 7,076 3.5 665
621 7.1 Cost of Sales 5,315 5,087 4.5 483 446 8.2 Gross Income
2,006 1,989 0.9 182 175 4.4 SG&A Expenses 1,423 1,339 6.3 129
118 10.0 Operating Income 583 650 (10.3) 53 57 (7.1) Other Expenses
(Income), net 118 55 114.8 11 5 120.0 Interest Expense (414) (470)
(11.8) (37) (41) (8.8) Interest Income 40 40 1.0 4 3 4.9 Other
Financial Expenses (net) (65) (229) (71.4) (6) (20) (71.1) Exchange
Loss (135) 196 -- (12) 17 -- Gain from Monet. Position 152 175
(13.4) 14 15 (10.4) Total Financing Result (422) (288) 46.7 (38)
(25) 49.0 Inc. (loss) bef. Tax 43 307 (86.0) 5 27 (82.6) Income Tax
87 192 (54.4) 8 17 (51.8) Net Inc. (loss) Cont. Opns. (45) 116 --
(3) 10 -- Income (loss)of Discont. Oper. - - -- - 0 -- Income on
disposal of discontinued operations - (27) -- - (2) --
Extraordinary Items, Net - - -- - - -- Net Income (Loss) (45) 89 --
(3) 8 -- Net Income (loss) of Maj. Int. (88) 110 -- (7) 10 -- Net
Income (loss) of Min. Int. 43 (21) -- 4 (2) -- January - September
INCOME STATEMENT Constant Pesos Nominal Dollars Item 2007 2006 %
Var. 2007 2006 % Var. Consolidated Net Sales 21,066 20,616 2.2
1,901 1,793 6.1 Cost of Sales 15,187 15,040 1.0 1,371 1,308 4.8
Gross Income 5,880 5,577 5.4 531 484 9.5 SG&A Expenses 4,083
4,013 1.7 368 349 5.4 Operating Income 1,797 1,564 14.9 162 135
20.2 Other Expenses (Income), net 594 122 385.0 53 11 388.0
Interest Expense (1,291) (1,393) (116) (121) (3.9) Interest Income
162 94 73.0 15 8 80.1 Other Financial Expenses (net) (457) (728)
(37.2) (41) (64) (35.0) Exchange Loss (89) (345) (74.1) (7) (29)
(75.1) Gain from Monet. Position 291 298 (2.2) 26 26 (0.9) Total
Financing Result (1,384) (2,074) (33.3) (124) (179) (30.7) Inc.
(loss) bef. Tax (181) (633) 71.5 (14) (55) 73.6 Income Tax 207 (95)
-- 19 (7) -- Net Inc. (loss) Cont. Opns. (388) (538) 27.9 (33) (48)
30.1 Income (loss)of Discont. Oper. - (30) -- - (2) -- Income on
disposal of discontinued operations - 476 -- - 40 -- Extraordinary
Items, Net - - -- - - -- Net Income (Loss) (388) (92) (319.4) (33)
(10) (221.1) Net Income (loss) of Maj. Int. (493) 4 -- (43) (2) --
Net Income (loss) of Min. Int. 106 (97) -- 10 (9) -- Last Twelve
Months INCOME STATEMENT Constant Pesos Nominal Dollars Item 2007
2006 % Var. 2007 2006 % Var. Consolidated Net Sales 27,913 27,151
2.8 2,510 2,357 6.5 Cost of Sales 20,078 19,690 2.0 1,805 1,710 5.6
Gross Income 7,836 7,462 5.0 704 647 8.8 SG&A Expenses 5,526
5,410 2.1 497 470 5.6 Operating Income 2,309 2,052 12.6 208 177
17.3 Other Expenses (Income), net 247 96 157.6 21 8 166.0 Interest
Expense (1,682) (1,897) (11.3) (151) (165) (8.4) Interest Income
201 155 29.2 18 14 33.9 Other Financial Expenses (net) (529) (931)
(43.1) (48) (82) (41.2) Exchange Loss 35 (191) -- 4 (15) -- Gain
from Monet. Position 427 457 (6.4) 38 40 (4.8) Total Financing
Result (1,548) (2,407) (35.7) (138) (208) (33.5) Inc. (loss) bef.
Tax 514 (451) -- 48 (39) -- Income Tax 524 (96) -- 48 (7) -- Net
Inc. (loss) Cont. Opns. (10) (355) (97.1) 0 (32) -- Income (loss)of
Discont. Oper. - (11) -- - (1) -- Income on disposal of
discontinued operations (2) 476 -- (0) 40 -- Extraordinary Items,
Net - (0) -- - (0) -- Net Income (Loss) (12) 110 -- 0 7 (98.5) Net
Income (loss) of Maj. Int. (103) 197 -- (8) 15 -- Net Income (loss)
of Min. Int. 90 (87) -- 8 (8) -- VITRO, S.A.B. DE C.V. AND
SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS As of September 30,
(Million) Constant Pesos Nominal Dollars BALANCE SHEET 2007 2006 %
Var. 2007 2006 % Var. Cash & Cash Equivalents 1,476 804 83.7
135 71 90.9 Trade Receivables 1,795 1,589 13.0 164 139 18.1
Inventories 3,755 3,765 (0.3) 344 331 3.8 Other Current Assets
3,226 2,763 16.8 295 243 21.6 Total Current Assets 10,252 8,921
14.9 938 784 19.7 Prop., Plant & Equipment 16,939 16,427 3.1
1,551 1,440 7.7 Deferred Assets 2,797 2,577 8.5 256 224 14.4 Other
Long-Term Assets 321 443 (27.6) 29 39 (24.3) Total Assets 30,310
28,368 6.8 2,775 2,487 11.6 Short-Term & Curr. Debt 876 5,617
(84.4) 80 492 (83.7) Trade Payables 1,997 2,023 (1.3) 183 177 3.2
Other Current Liabilities 2,647 2,472 7.1 242 217 11.4 Total Curr.
Liab. 5,520 10,111 (45.4) 505 886 (43.0) Long-Term Debt 14,221
8,176 73.9 1,302 717 81.6 Other LT Liabilities 2,024 1,895 6.8 185
165 12.0 Total Liabilities 21,765 20,182 7.8 1,992 1,769 12.7
Majority interest 6,700 5,670 18.2 613 499 22.9 Minority Interest
1,845 2,517 (26.7) 169 219 (23.0) Total Shar. Equity 8,545 8,187
4.4 782 718 8.9 FINANCIAL INDICATORS 3Q'07 3Q'06 Debt/EBITDA (LTM,
times) 3.5 3.2 EBITDA/ Total Net Fin. Exp. (LTM, times) 2.1 1.6
Debt / (Debt + Equity) (times) 0.6 0.6 Debt/Equity (times) 1.8 1.7
Total Liab./Stockh. Equity (times) 2.5 2.5 Curr. Assets/Curr. Liab.
(times) 1.9 0.9 Sales/Assets (times) 0.9 1.0 EPS (Ps$) * (0.25)
0.37 EPADR (US$) * (0.06) 0.10 * Based on the weighted average
shares outstanding. OTHER DATA # Shares Issued (thousands) 386,857
324,000 # Average Shares Outstanding (thousands) 358,538 295,728 #
Employees 24,400 22,468 VITRO, S.A.B. DE C.V. AND SUBSIDIARIES
SEGMENTED INFORMATION FOR THE PERIODS, (MILLION) Third Quarter
Constant Pesos Nominal Dollars 2007 2006 % 2007 2006 % GLASS
CONTAINERS Net Sales 3,746 3,721 0.7% 340 327 3.9% Interd. Sales 8
17 -55.9% 1 2 -54.2% Con. Net Sales 3,739 3,703 1.0% 339 326 4.2%
Expts. 1,048 984 6.5% 96 87 9.8% EBIT 446 524 -14.9% 40 46 -12.3%
Margin (1) 11.9% 14.1% 11.9% 14.1% EBITDA 728 855 -14.9% 66 75
-12.2% Margin (1) 19.5% 23.1% 19.4% 23.0% Glass containers volumes
(MM Pieces) Domestic 1,214 1,311 -7.4% Exports 338 340 -0.6%
Total:Dom.+Exp. 1,552 1,651 -6.0% Soda Ash (Thousand Tons) 163 155
5.0% FLAT GLASS Net Sales 3,499 3,270 7.0% 318 286 11.2% Interd.
Sales 2 (0) -- 0 (0) -- Con. Net Sales 3,497 3,270 6.9% 318 286
11.1% Expts. 674 552 22.1% 61 48 26.1% EBIT 208 147 40.9% 19 13
47.7% Margin (1) 5.9% 4.5% 5.9% 4.5% EBITDA 336 331 1.6% 31 29 6.1%
Margin (1) 9.6% 10.1% 9.6% 10.1% Flat Glass Volumes (Thousand
m2R)(3) Const + Auto 34,624 31,661 9.4% CONSOLIDATED (2) Net Sales
7,330 7,094 3.3% 666 623 7.0% Interd. Sales 9 17 -45.3% 1 2 -43.2%
Con. Net Sales 7,321 7,076 3.5% 665 621 7.1% Expts. 1,722 1,536
12.1% 157 135 15.6% EBIT 583 650 -10.3% 53 57 -7.1% Margin (1) 8.0%
9.2% 7.9% 9.2% EBITDA 1,039 1,199 -13.3% 94 105 -10.5% Margin (1)
14.2% 16.9% 14.1% 16.9% January - September Constant Pesos Nominal
Dollars 2007 2006 % 2007 2006 % GLASS CONTAINERS Net Sales 10,889
10,368 5.0% 983 904 8.7% Interd. Sales 30 65 -53.6% 3 6 -52.0% Con.
Net Sales 10,859 10,303 5.4% 980 899 9.0% Expts. 3,036 2,950 2.9%
275 259 6.2% EBIT 1,363 1,340 1.7% 123 116 5.9% Margin (1) 12.6%
13.0% 12.5% 12.9% EBITDA 2,244 2,341 -4.1% 202 203 -0.4% Margin (1)
20.7% 22.7% 20.6% 22.6% Glass containers volumes (MM Pieces)
Domestic 3,635 3,656 -0.6% Exports 990 1,005 -1.5% Total:Dom.+Exp.
4,625 4,661 -0.8% Soda Ash (Thousand Tons) 473 474 -0.2% FLAT GLASS
Net Sales 9,958 10,016 -0.6% 899 868 3.6% Interd. Sales 9 0 2144.3%
1 0 2235.3% Con. Net Sales 9,949 10,015 -0.7% 898 868 3.5% Expts.
1,975 1,929 2.4% 178 168 6.0% EBIT 539 280 92.7% 49 24 104.8%
Margin (1) 5.4% 2.8% 5.4% 2.7% EBITDA 955 815 17.2% 86 70 22.7%
Margin (1) 9.6% 8.1% 9.6% 8.1% Flat Glass Volumes (Thousand m2R)(3)
Const + Auto 98,918 99,726 -0.8% CONSOLIDATED (2) Net Sales 21,105
20,684 2.0% 1,905 1,799 5.9% Interd. Sales 39 68 -42.8% 4 6 -40.8%
Con. Net Sales 21,066 20,616 2.2% 1,901 1,793 6.1% Expts. 5,011
4,880 2.7% 453 427 6.1% EBIT 1,797 1,564 14.9% 162 135 20.2% Margin
(1) 8.5% 7.6% 8.5% 7.5% EBITDA 3,218 3,199 0.6% 290 277 4.7% Margin
(1) 15.3% 15.5% 15.3% 15.5% Last Twelve Months Constant Pesos
Nominal Dollars 2007 2006 % 2007 2006 % GLASS CONTAINERS Net Sales
14,450 13,388 7.9% 1,300 1,168 11.3% Interd. Sales 50 90 -44.3% 5 8
-42.6% Con. Net Sales 14,400 13,298 8.3% 1,296 1,160 11.7% Expts.
3,992 3,752 6.4% 359 328 9.5% EBIT 1,854 1,617 14.6% 167 140 18.9%
Margin (1) 12.9% 12.2% 12.9% 12.1% EBITDA 3,052 2,966 2.9% 275 258
6.5% Margin (1) 21.2% 22.3% 21.2% 22.2% Glass containers volumes
(MM Pieces) Domestic 4,868 4,723 3.1% Exports 1,328 1,305 1.8%
Total:Dom.+Exp. 6,196 6,028 2.8% Soda Ash (Thousand Tons) 634 628
1.0% FLAT GLASS Net Sales 13,135 13,449 -2.3% 1,180 1,162 1.6%
Interd. Sales 10 0 2137.8% 1 0 2213.2% Con. Net Sales 13,125 13,449
-2.4% 1,179 1,162 1.5% Expts. 2,472 2,737 -9.7% 222 239 -6.7% EBIT
657 465 41.3% 59 39 49.8% Margin (1) 5.0% 3.5% 5.0% 3.4% EBITDA
1,256 1,170 7.4% 113 100 12.2% Margin (1) 9.6% 8.7% 9.6% 8.6% Flat
Glass Volumes (Thousand m2R)(3) Const + Auto 128,779 136,897 -5.9%
CONSOLIDATED (2) Net Sales 27,973 27,246 2.7% 2,515 2,365 6.3%
Interd. Sales 60 95 -36.4% 5 8 -34.6% Con. Net Sales 27,913 27,151
2.8% 2,510 2,357 6.5% Expts. 6,464 6,489 -0.4% 582 567 2.7% EBIT
2,309 2,052 12.6% 208 177 17.3% Margin (1) 8.3% 7.6% 8.3% 7.5%
EBITDA 4,275 4,248 0.6% 384 368 4.4% Margin (1) 15.3% 15.6% 15.3%
15.6% (1) EBIT and EBITDA Margins consider Consolidated Net Sales.
(2) Includes corporate companies and other's sales and EBIT. (3)
m2R = Reduced Squared Meters DATASOURCE: Vitro S.A.B. de C.V.
CONTACT: Albert Chico of Vitro, S.A.B. de C.V., +52-81-8863-1661, ;
Susan Borinelli, , or Maura Gedid, , both for Breakstone Group,
U.S. agency, +1-646-452-2335; INVESTORS: Adrian Meouchi,
+52-81-8863-1765, , Angel Estrada,+52-81-8863-1730, , both of Vitro
S.A.B. de C.V.
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