Vitro S.A.B. de C.V., one of the world“s largest producers and distributors of glass products, announced 26 February 2008 that 4Q 2007 consolidated sales increased 8.3% and EBITDA rose 6.9% year-on-y…
Vitro S.A.B. de C.V., one of the world“s largest producers and distributors of glass products, announced 26 February 2008 that 4Q 2007 consolidated sales increased 8.3% and EBITDA rose 6.9% year-on-year. The consolidated EBITDA margin dropped slightly to 15.3% from 15.5% in the same period 2006 as natural gas prices increased by 16%. Commenting on the results for the quarter, chief executive officer Federico Sada said, “The solid fundamentals of our core glass businesses are reflected in the results for the 4Q and the year. On a comparable basis, consolidated EBITDA, it was a record 4Q and the highest fiscal year since 1999 at nearly USD 391 million, despite the natural gas disruptions. This was also a record fiscal year and 4Q at Glass Containers. We reported EBITDA of nearly USD 76 million for the quarter despite the significant increase in energy costs”. “We are particularly pleased with Flat Glass performance,” Mr. Sada continued. “Our results reflect the continuing shift to value added, higher margin products in all locations. The 4Q of 2007 was the best on a comparable basis that we“ve seen in the last three years. EBITDA rose by 13.6% year over year. We also reported the highest comparable EBITDA for a fiscal year in Flat Glass since 2004”. Mr. Enrique Osorio, chief financial officer, noted, “We are starting the new year from a very strong base with both businesses in excellent condition. For example, at Flat Glass, both automotive replacement and OEM reported excellent year over year results. Our strategy to diversify our client base is starting to pay off in volume. And the price mix has improved as new platforms with increasing value added are substituted for older platforms”. “In automotive replacement, our VitroCar distribution chain reported very strong growth. We are also pleased with the strong performance of our domestic float glass business which is benefiting from our strategy to move into the transformation business,” Mr. Osorio continued. “On the financial front, the average cost of debt dropped 100 basis points from 10.5% in 4Q 2006 to 9.5% as a result of our refinancing. As a result, lower interest expense and increased EBITDA have made a substantial contribution to our cash flow”. “It is clear we are continuing to build on Vitro“s inherent strengths in the glass industry as we benefit from our established position, production flexibility and fast time to market. Given this strong performance, and ongoing emphasis on cost control, we feel Vitro is in an excellent position to face the challenges of 2008,” Mr. Osorio concluded.