Grupo Imsa Announces Third Quarter 2004 Results

MONTERREY, Mexico--Oct. 2, 20046, 2004--Grupo Imsa today announced results for the third quarter of 2004. Unless otherwise stated, all figures are presented in millions of September 30, 2004 pesos (Ps), or in millions of nominal U.S. dollars(a) (US$).

                     Third Quarter 2004 Highlights

    --  Third quarter revenues of all three business segments rose.
        Total sales reached a historic quarterly maximum of Ps10,038,
        an increase of 38.2% year-over-year and of 5.7%
        quarter-over-quarter. In dollar terms, revenues grew 38.6%
        compared to the third quarter of 2003 to a total of US$ 883.

    --  Operating expenses as a percent of sales were 7.3% in third
        quarter 2004, down from 10.2% in third quarter 2003 and
        reflecting improved operating efficiency.

    --  Operating income for third quarter 2004 reached a historic
        quarterly maximum of Ps1,239, an increase of 156.5% compared
        to the same period of 2003 and of 7.5% quarter-over-quarter.
        In dollar terms, operating income grew 144.5% compared to
        third quarter 2003 to US$ 108.

    --  Third quarter EBITDA also reached a historic maximum, totaling
        Ps 1,628, 107.9% above that of the same period of 2003 and
        8.5% more than second quarter 2004. In dollar terms, EBITDA
        grew 100.9% compared to the third quarter of 2003 to US$ 142.

    --  Despite a large increase in working capital needs, Grupo
        Imsa's net debt was reduced by US$ 422 in the third quarter of
        2004, and by US$ 520 during the past twelve months, largely
        because of the sale of the Company's automotive battery
        business.

    --  Net interest coverage -- defined as EBITDA divided by net
        interest expense -- was 16.4 times for the past twelve months,
        while leverage -- defined as total debt divided by EBITDA --
        was 1.0 times.

    --  Grupo Imsa and Johnson Controls (JCI) formalized an agreement
        whereby Grupo Imsa exited the automotive battery business and
        Johnson Controls assumed 100% ownership.

    --  As of the third quarter of 2004, the results of the battery
        business were not consolidated into those of Grupo Imsa. Prior
        periods' information was reclassified using the heading
        "Discontinued operations" to reflect the Company's new
        position and make financial statements comparable.