Grupo Imsa Announces First Quarter 2004 Results

MONTERREY, Mexico--April 22, 2004--Grupo Imsa, S.A. de C.V. today announced results for the first quarter of 2004. Unless otherwise stated, all figures are presented in millions of March 31, 2004 pesos (Ps), or in millions of nominal U.S. dollars(a) (US$).

First Quarter 2004 Highlights

-- With a better environment for Grupo Imsa's businesses, first quarter revenues of all four business segments rose. Total sales reached a historic quarterly maximum, and totaled Ps 8,686 for the first quarter of 2004, an increase of 23.0% year-over-year and 2.1% quarter-over-quarter. In dollar terms, revenues grew 26.5% compared to the first quarter of 2003.

-- For first quarter 2004 IMSA ACERO posted a record sales volume, which was 28.8% higher year-over-year and 10.6% more quarter-over-quarter.

-- ENERMEX's first quarter sales volume was 6.0% above that of the first quarter of 2003 but 12.4% below that of fourth quarter 2003.

-- Operating expenses as a percent of sales were 9.7% in first quarter 2004, down from 12.3% the previous year.

-- Operating income for first quarter 2004 was Ps 615, an increase of 20.1% compared to the previous year but a decline of 1.0% quarter-over-quarter. In dollar terms, operating income grew 24.9% compared to first quarter 2003.

-- First quarter EBITDA totaled Ps 995, 15.7% above that of the same period of 2003 and 0.1% more than fourth quarter 2003. In dollar terms, EBITDA grew 19.5% compared to the first quarter of 2003.

-- Grupo Imsa's debt was reduced by US$6 during the first quarter of 2004, and by US$96 during the past twelve months.

-- Net interest coverage - defined as EBITDA divided by net interest expense - was 12.7 times for the past twelve months.

-- During the first months of 2004 there was a generalized rise in global steel prices and a limited supply, reflecting increases in demand and the cost of inputs.