SANLUIS Corporacion S.A. de C.V. and Subsidiaries Results for the Second Quarter 2003 (Millions of US dollars )
MEXICO CITY, July 24 -- SANLUIS Corporacion, S.A. de C.V. (BMV: SANLUIS), a Mexican industrial group that manufactures auto parts, today reported results for the three months ended June 30, 2003.
* Compared with the same period last year, sales increased 3%.
* On an accumulated basis, during the year's first half, sales increased
by 8% while EBITDA improved 4%.
* In the second quarter sales were U$ 121.2 million.
* EBITDA in the last three months was U$ 16.9 million.
* Rassini Chassis Systems, which will manufacture coil springs for
automotive suspensions, was inaugurated in Ohio, USA.
Operational Results
Sales and EBITDA (earnings before interest, depreciation, amortization and income taxes) of SANLUIS in the first six months of 2003 totaled U$ 236.4 million and U$ 35.2 million, respectively.
Higher sales levels combined with increased plant efficiency, higher productivity, lower average steel price, reduced fixed costs at plants as well as lower sales and administrative expenses have brought as a result satisfactory EBITDA levels. These improvements partially compensated negative influences like gas, power and scrap price increases. The company absorbed product price reductions as a consequence of discounts in mature platforms as well as extraordinary discounts requested by Daimler-Chrysler. During the quarter, a shift in the brake product mix was experienced as lower priced products increased their share since higher priced products reduced their volumes.
Although foreign exchange losses incurred were lower than last year, and EBITDA improved and financial expenses were on a reduced level, all of these elements did not translate into higher net income. This occurred since on a pro-forma basis the results of the financial restructuring, in anticipation of its closing, were already reflected one year ago as an agreement in principle was reached at that point in time with a lenders representative committee. The following table shows this point.
(Amounts in U$ Million) January-June
2002 2003
-EBITDA $ 33.7 $ 35.2
-Depreciation (15.3) (14.9)
-Net Financial expense (24.9) (14.8)
-(Loss) Foreign
exchange gain (37.4) (5.5)
-Monetary Position (Loss)
Gain 13.9 4.4
-Other (Expenses) Gains 1.8 (4.2)
-Taxes+Profit sharing 11.7 (5.3)
-(Loss) Gain before minorities
and debt restructure
effects $ (16.5) $ (5.1)
-Restructure effects
and mining sale 53.3 --
-Minority Participation
(Gain) Loss (0.6) 1.0
-Net Income (Loss) $37.4 $ (6.1)
The effects derived from the financial restructure and sale of the Mining Division were already incorporated in second quarter 2002 numbers. It generated an extraordinarily favorable effect of U$ 53.5 million consisting of:
U$ Million
Debt restructuring effects
- Debt discount $83.9
- Cancelled interests due in
2001 and 2002, net of
deferred taxes 17.4
- Foreign exchange effects 1.7
Debt restructuring $103.0
Loss Mining Division sale $(49.7)
Total extraordinary restructure
& mining sale effect $53.3
Assuming that the above-mentioned special effect was eliminated, the half year results would be a U$ 5.1 million loss which compares with last year's reported net loss of U$ 16.5 million.
The positive operational results are not completely reflected in a higher cash position because in the Suspension business we incorporated a new supplier. While our most important special steel supplier normalized its operations, after a prolonged strike, we purchased raw material from an alternative source at lower prices but less credit tenor.
The suspension business, including Brazil, recorded sales during the first six months of U$169.5 million, which places it at the same level achieved in the same period during 2002.
The Brake business during the last quarter reached sales of U$ 34.4 million, a 22.0% increase over the same period in 2002.
In the first half of the year Brakes' sales were 30.2% more than in the same period 2002.
Consolidated Results for the Second Quarter 2003 (US $ Millions)
(excluding Hendrickson Rassini and Luismin in all periods)
2002 2003
Q2 Q3 Q4 Q1 Q2 Last
12 Months
Sales:
Suspensions 89.4 76.4 80.9 82.8 86.8 326.9
Brakes 28.2 29.3 35.0 32.4 34.4 131.1
Consolidated 117.6 105.7 115.9 115.2 121.2 458.0
EBITDA: 20.0 16.4 18.9 18.3 16.9 70.5
% EBITDA
Margin 17.0 15.5 15.7 15.9 13.9 15.4
Rassini Chassis Systems
Rassini Chassis Systems' plant was inaugurated in Montpelier, Ohio. The new business unit will produce coil spring suspensions. It will have four production lines capable of producing 10 million springs annually for the OEM car and pick-up market. The plant enjoys a close proximity to its suppliers and customers, facilitating the reception of raw material and finished product delivery elements that will unquestionably become competitive advantages in the value creation chain. The plant will employ 80 people.
The incursion into the United States is to consolidate SANLUIS Rassini's leadership as a designer and producer of high-tech suspension system components throughout the American continent.
SANLUIS
SANLUIS produces suspensions and brake components for the global automotive industry, with a principal focus on original equipment manufacturers (OEMs).
Suspension products include leaf springs (parabolic and multi-leaf), coil springs, torsion bars, bushings, and stabilizer bars. The Brake Division produces drums and discs.
SANLUIS Rassini has a 90% share of the Mexican market for light truck suspensions and a 62% share of the U.S. and Canadian market. Its solid and diversified client base includes General Motors, Ford, DaimlerChrysler, Nissan, Volkswagen, and Toyota.
In the Brake business, SANLUIS Rassini has an 12% market share in the U.S. and Canada in the disc and drum segment of the light vehicle market.
SANLUIS Corporacion, S.A. de C.V.
Consolidated Balance Sheets as of June 30, 2003
(in thousands of Mexican Pesos in Purchasing Power of June 30, 2003)
(excluding Hendrickson Rassini and Luismin in all periods)
Assets 2003 2002
(Considering the
restructure at
87%)
Cash & equivalents 154,697 241,394
Client receivables 668,485 551,276
Other Accounts Receivable 283,095 208,614
Inventories 343,294 308,424
Other current assets 114,874 95,077
Total current assets 1,564,445 1,404,785
Investment in affiliates
and long-term receivables 202,849 479,754
Property, Plant &
Equipment, net 4,126,997 3,932,662
Other assets 1,263,972 1,566,587
Total assets 7,158,263 7,383,788
Liabilities
Suppliers 481,363 567,795
Notes Payable 470,833 376,384
Other Current Liabilities 367,237 314,969
Long-Term debt 3,280,549 3,231,514
Deferred Taxes -- --
Other Liabilities 98,576 118,312
Total liabilities 4,698,558 4,608,974
Consolidated Net Worth
Majority Interest Equity 660,895 1,036,120
Minority Interest Equity 1,798,810 1,738,694
Total consolidated
Net Worth 2,459,705 2,774,814
Total liabilities and
Net Worth 7,158,263 7,383,788
SANLUIS Corporacion, S.A. de C.V. solidated Statements of Income for the quarters ended June 30, 2003 and 2002
(in thousands of Mexican Pesos in Purchasing Power of June 30, 2003)
(Excluding Hendrickson Rassini and Luismin in all periods)
2003 2002
(Considering the
restructure at
87%)
Net Sales 2,516,031 2,134,614
Cost of Sales 1,949,583 1,626,037
Gross Profit 566,448 508,577
Operating Expenses 349,999 329,692
Operating Income 216,449 178,885
Financial expenses 165,453 111,667
Financial gain 7,075 5,116
Exchange (Gain) Loss 58,277 348,055
Monetary Position
(Gain) Loss (46,892) (135,495)
Other expenses 44,751 51,180
Income from affiliates (960) (1,498)
Income before Taxes and
Profit Sharing 975 (192,904)
Taxes and Employee
Profit Sharing 22,583 16,020
Deferred Taxes 34,148 (37,666)
Net Income before
extraordinary items (55,756) (171,258)
Extraordinary expense
(income) 0 (582,065)
Net Income (55,756) 410,808
Distribution of
Net Income:
Majority Interests (64,618) 418,918
Minority Interests 8,862 (8,110)
Depreciation &
Amortization 158,673 149,182
EBITDA 375,122 328,067
Financial and
operating indicators
Gross Margin 22.51% 23.83%
EBITDA Margin 14.91% 15.37%
Operative Margin 8.60% 8.38%
Net Interest coverage
(EBITDA /Net Interest
Expense) 2.4 3.1
Contact:
Hector Amador
SANLUIS Corporacion, S.A. de C.V.
Tel : (525) 5 229-58-38
Fax: (525) 5 202-66-04
http://www.sanluiscorp.com/
e-mail: hamador@sanluiscorp.com.mx