Vitro: 2Q 2006 consolidated sales up 6% and EBITDA up 19%

Vitro S.A. de C.V. posted year-on-year consolidated sales up 5.7% and EBITDA up 17.8% in its 2Q 2006 unaudited results on 25 July 2006. Consolidated EBITDA margins were up 160 basis points to 16.3% fo…

Vitro S.A. de C.V. posted year-on-year consolidated sales up 5.7% and EBITDA up 17.8% in its 2Q 2006 unaudited results on 25 July 2006. Consolidated EBITDA margins were up 160 basis points to 16.3% for the quarter. Excluding divestitures of Plasticos Bosco (Bosco) in April 2005, Quimica M in March 2006 and the acquisition of Vidrios Panameos (VIPASA) inApril 2006, consolidated sales rose 5.8% and consolidated EBITDA increased 19.4% during the same period. Alvaro Rodriguez, Chief Financial Officer, said: “This was again a very good quarter, with a solid performance in both business units. As a matter of fact, on a comparable basis, the EBITDA obtained this quarter is the highest since 2Q 2001,which reflects the positive trend that we“ve been talking about since 2003”. Mr. Rodriguez continued, “GlassContainers continued to report outstanding results with sales up 11% and EBITDA up 29%. It“s important to note that the strength in this business is widespread. It reflects strong demand in both international and domestic operations covering all major market segments and the fact that we continue to open new markets”. “At Flat Glass, trends remain positive, with strong growth in the domestic construction and auto OEM markets, as well as at our foreign subsidiaries. As anticipated, exports declined as we refocus on domestic markets. In fact, on a comparable basis,excluding Quimica M, sales rose 3% and EBITDA without inventory reduction effect grew 64% for the quarter and 46% for the 1H of the year. This is a sign of the new trend for the Flat Glass business unit”. “Progress was also made in our cost cutting efforts, and this quarter SG&A fell to 19.1% of sales from 20.4% in the 2Q of 2005”. “We are also moving ahead with our strategy of reducing holding company debt. Year over year, we reduced gross debt at the holding company level by USD 144 million and consolidated gross debt by USD 98 million to USD 1.297 billion which, on a comparable basis, is the lowest debt level since 4Q 2002. In addition, consolidated net debt declined by USD 71 million. We continued to make progress with the sale of ancillary real estate, with an additional USD 13 million received in July. Proceeds from the sale of real estate and the recent divestiture of Crisa will fund our 2006 amortizations”.