Grupo IMSA Announces First Quarter 2002 Results; Interest Coverage Rises to 8.8 Times
MONTERREY, Mexico--April 24, 2002--Grupo IMSA, S.A. de C.V. today announced results for the first quarter of 2002.Unless otherwise stated, all figures are presented in millions of March 31, 2002 pesos (Ps), or in millions of nominal US dollars(a) (US$).
First Quarter 2002 Highlights
| -- | First quarter revenues in nominal dollar terms rose year-over-year by 14.3% to US$566, and in peso terms by 5.8% to Ps 5,148. |
| -- | IMSA ACERO's sales volume for the first quarter grew 5.2% year-over-year. |
| -- | In the first quarter, ENERMEX's sales volume increased by 12.0% year-over-year, reflecting the incorporation of new clients in the second quarter of 2001. |
| -- | First quarter EBITDA in nominal dollar terms totaled US$68, 1.8% below the same period of the previous year; in peso terms, EBITDA decreased year-over-year by 7.2%. |
| -- | Net income for the first quarter rose year-over-year by 50.8% to Ps 371. |
| -- | Interest coverage defined as EBITDA divided by net interest expense rose to 8.8 times in the first quarter of 2002, while interest coverage defined as EBITDA divided by gross interest expense reached 6.7 times. |
| -- | During the quarter, the first phase of the expansion of IMSA ACERO's hot-rolling mill was completed. |
| -- | On March 5, 2002, President Bush announced the measures that will be implemented in the United States to protect the nation's steel industry, including tariffs of 30% on flat products. In accordance with NAFTA, Mexico was excluded from any such measures. |
| -- | Capacity closures, the new import tariffs on steel products and a recovery in demand have resulted in an increase in steel prices in the United States, as well as on a global level. |
For a full version of Grupo IMSA's first quarter of 2002 earnings release please visit our Web site at www.grupoimsa.com.
A conference call with Marcelo Canales Clariond, Chief Financial Officer of Grupo IMSA, will be held on Thursday, April 25, 2002 at 11:30am US ET. To participate in the conference, please dial 719/457-2653 ten minutes prior to the call. Confirmation Code: 317771
(a) Nominal dollars result from the translation of nominal pesos using
the average exchange rate of each month.