Vitro reports preliminary third-quarter results

Vitro, S.A. de C.V. has announced selected unaudited preliminary results for the three-month period ended 30 September.
During the third quarter, the company used US$ 31 million from cash flow to red…

Vitro, S.A. de C.V. has announced selected unaudited preliminary results for the three-month period ended 30 September. During the third quarter, the company used US$ 31 million from cash flow to reduce outstanding debt. Outstanding debt on 30 September was US$ 1,614 million, compared with US$ 1,662 million on 31 March and US$ 1,645 million on 30 June, bringing the total debt reduction during the last six months to US$ 48 million. The company“s sales performance for the quarter was favourable in dollar terms, mainly driven by the results of the Flat Glass, Glass Containers and Acros Whirlpool business units and included sales at Cristalglass, the European-based processor and distributor of construction glass. Year-to-date, sales remained practically at the same level in peso terms and showed a 4.5% improvement in US dollars, when compared with the same period last year. Third-quarter results continued to be affected by the strength of the Mexican peso and price pressures arising from the continued slowdown of the US and Mexican economies, which has reduced demand and, as a consequence, decreased the fixed costs absorption for some of the business units. Additionally, results started to show some impact from the events of the World Trade Center in New York and their immediate impact on consumers“ sentiment, particularly in segments such as the restaurant service and automotive OEM“s, which represented 2% and 7% respectively of the company“s total sales for 2000. Year-to-date, EBITDA declined by 13% in peso terms and by 6.6% in US dollars when compared with the previous year.