SANLUIS Achieves Solid Results and Consistent Growth
23 March 2000
SANLUIS Achieves Solid Results and Consistent Growth -- Sales and Net Income on the Rise -- Two Consecutive Record Years of Growing Results 1999 Net Income will be Reinvested; Maintains Suspension of Dividend
MEXICO CITY, March 23 SANLUIS Corporacion, S.A. de C.V.
(BMV: SANLUIS), a leading supplier to original equipment manufacturers of
highly engineered autoparts and one of the world's lowest cost producers of
gold and silver, reported the highlights of its Annual Shareholders' Meeting
on March 16.
Given the opportunities for reinvestment in the business, the Board of
Directors agreed after the Shareholders' Meeting to allocate all Net Income to
the future growth of the Company. Accordingly, no dividend was declared. The
resources will be used to strengthen SANLUIS's financial position and to
provide the resources for future growth.
For the second consecutive year, SANLUIS reported strong increases in
sales, EBITDA, and Net Income. Consolidated sales reached US$ 471 million, or
24% above the 1998 level. EBITDA was US$ 104 million, or 32% more than in
1998. The EBITDA margin increased to 22% from 21%.
Last year also marked the completion of SANLUIS's five-year investment
program. During that time, the Company's sales have grown at an average annual
rate of 31%, making SANLUIS one of the fastest growing companies in Latin
America.
Antonio Madero, Chairman and CEO of SANLUIS noted, "Both our operational
and financial results confirm the strategic decisions we made five years ago
to invest in expanding our suspension and brake capacity, and are now creating
value for the Company and for our shareholders."
Results were particularly outstanding in the SANLUIS Rassini autoparts
division, which registered a 30% increase in sales, to US$ 411 million.
EBITDA reached $84 million dollars, or 51% higher than the year before. This
division has recorded five consecutive years of sustained growth.
The autoparts division now exports 84% of its production, which reflects
both the investment program as well as record light truck sales in North
America.
SANLUIS has a 62% share in the supply of leaf springs for the North
American light truck market, and has long-term contracts to supply 52
automotive platforms from its 12 plants in Mexico and Brazil.
The platforms that use SANLUIS Rassini components include Ford pick-up
trucks and SUV's; Daimler Chrysler's Ram, Durango, mini-van and Mercedes M-80
platforms; the Nissan X-Terra, nominated 'Truck of the Year,' the Volkswagen
New Beetle; and the BMW Z3 Roadster and X-5, among others.
The success is also due to growth in the brake business, which increased
sales 48% last year to US$ 66 million. Future growth could be even higher,
given the extremely high productivity of the brake plants. With the award of
new contracts, the Company is considering another expansion in production
capacity for 2001.
SANLUIS Rassini's profit margins have met the expectations of the original
investment program that expanded high technology production capacity in the
brake and suspensions areas. Both divisions have achieved leadership
positions, through their permanent commitment to being the 'Best of the Best'
in terms of client orientation, service, and quality. The Technology
Development Center in Plymouth, Michigan is in the process of completing the
installation of its test and analysis equipment, which will further deepen
this commitment.
"With our solid results, our reduction in debt and commitment to future
debt reduction, and our long-term contracts with the world's leading auto
companies, the future of SANLUIS is, truthfully, a very promising one. We are
highly confident that our growth will continue, for the benefit of everyone
involved in this great company," concluded Mr. Madero.
SANLUIS Corporacion S.A. de C.V. (BMV: SANLUIS) has two operating
divisions, SANLUIS Rassini and Luismin. SANLUIS Rassini, which generates more
than 85% of the Company's revenues, is a leading manufacturer of highly
engineered suspension systems and brake components for the world's OEMs.
Luismin is one of the world's lowest cost producers of gold and silver. More
than 90% of the revenues of SANLUIS are dollar-denominated.