Vitro: debt is good, says finance chief

Mexican glass leader Vitro expects to reduce its debt in 2005 by 8% to around USD 1.38 billion, said Chief Financial Officer Alvaro Rodrguez Arregui on 8 April 2005
During his participation in the 38…

Mexican glass leader Vitro expects to reduce its debt in 2005 by 8% to around USD 1.38 billion, said Chief Financial Officer Alvaro Rodrguez Arregui on 8 April 2005 During his participation in the 38th Symposium on the Administration of Technology Companies in Monterrey, the CFO said that the financial markets saw Vitro as being heavily indebted. In his view this was an erroneous perception and the level of company debt was “perfectly sustainable”. Comparing levels of gearing with competitors in Mexico and abroad, Vitro was not heavily geared, Rodrguez told students and faculty in the Luis Elizondo auditorium. Rodrguez noted that Vitro closed 2004 with a debt of USD 1.5 billion, a figure which was expected to diminish to USD 1.38 billion by the end of 2005. Debt is good, he said, because the only way for the company to grow is with debt issues, as these enable it to obtain the resources to develop value-adding projects. Instead of focusing on debt, given that this was at a sustainable level, the focus should be on improving productivity and competitivity, he said. In 2005, Vitro will invest USD 150 million in its Mexican and foreign-based plants. The investments are aimed at expanding autoglass production lines, modernizing container and flat glass plants, and the use of alternative energy.