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Vitro: year-on-year sales growth across units for 1Q 2005

Mexico“s Vitro S.A. de C.V. announced unaudited results for the 1Q 2005 on 26 April 2005. Consolidated sales remained unchanged year-on-year. Excluding Vitro Fibras (VIFISA) and Vitro American Nation…

Mexico“s Vitro S.A. de C.V. announced unaudited results for the 1Q 2005 on 26 April 2005. Consolidated sales remained unchanged year-on-year. Excluding Vitro Fibras (VIFISA) and Vitro American National Can (VANCAN), divested in March and September 2004, respectively, consolidated sales rose 3.8%. Consolidated EBITDA fell year-on-year 12% with margins down 1.8% to 13.1%. On a comparable basis, consolidated EBITDA declined 4.7%. Comparable EBITDA rose 8.0% at Glass Containers and fell 28.3% at Flat Glass and 23.8% at Glassware. Alvaro Rodriguez, Chief Financial Officer, noted: “Results are in line with expectations for the 1Q, which is always the weakest of the year. For the third consecutive quarter, on a comparable basis, all business units reported year-on-year sales growth. Glass Containers turned in an excellent performance, with sales up 6.4%. Glassware sales were up 6.7% and Flat Glass rose 0.9%.” Mr. Rodriguez commented, “During the quarter, we closed a five-year USD 150 million senior secured term loan at Vitro Envases Norteamerica, our Glass Containers business unit. The net proceeds from this loan, together with the USD 80 million from the reopening of the VENA bond on 4 February 2005 were used to pay down other debt. With these transactions we completed the refinancing of this business unit. This means that we do not have any large maturities for the next five years at VENA. In addition, VENA“s cost of debt fell by more than 1 percentage point and average debt life rose to 5.5 years from 3.9 years. At the same time, VENA“s debt to the holding company level fell to USD 75 million, from USD 221 million on 31 March 2004”. “On 31 March 2005, we issued a securitization program, the first of its kind in Mexico to replace a former factoring program at VENA. The program is composed of MXN 550 million in “Certificados Burstiles Preferentes“, issued in Mexico and USD 19 million of “Certificados Subordinados“ in the U.S. We are pleased to say that the preferred instruments were three times oversubscribed. This transaction was rated mxAAA by Standard & Poor“s and Aaamx by Moody“s.” “At a consolidated level, all this extends life of debt to 4.3 years from 3.8 years.” Mr. Rodriguez concluded, “On 1 April 2005 we sold our 100% interest in Plasticos Bosco, S.A. de C.V. This, divestiture, together with the other three completed over the last 18 months, finalizes our strategy of focusing on our core glass business units. Vitro today is a pure glass company operating in geographically diversified markets, selectively pursuing a unique position as a niche market leader, producing quality products for a diversified client base and plans to continue building our market position in the glass industry”.

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