According to some market analysts, the Mexican glassmaker Vitro is expected to record a net loss for 1996, but should show improved operating results for its basic divisions.
Santiago Pique, of Bear …
According to some market analysts, the Mexican glassmaker Vitro is expected to record a net loss for 1996, but should show improved operating results for its basic divisions. Santiago Pique, of Bear Stearns in New York, says that Vitro“s flat glass division is the most likely to revive in the near future, due to a recovery in the automotive and construction industries. Sergio Torres, an analyst with Inverlat International, estimated an operating margin of 18.7% for 1996, compared to approximately 23% in 1995, after adjusting for the sale of US operation Anchor Glass. “I see no nasty surprises, we all know Vitro is going to post a loss for 1996. There could, rather, be pleasant surprises,” he said. Torres also pointed to the company“s basic divisions. “Domestic appliances could have had a good 1996, due to exports. Flat glass, on the other hand, could not export as much as it wanted, so its 1996 operating margin may fall to 22%, from 23.8% in 1995,” he said, adding an optimistic forecast for Envases Mexico (containers), with margins around 19.8%, compared to 18% in 1995.