Vitro Reports 2.2 Percent Increase in Sales for Second Quarter
July 29, 2010
Vitro S.A.B. de C.V. has announced that its year-over-year consolidated
net sales increased 2.2 percent for the second quarter, and consolidated
EBITDA was up 26.7 percent over the same period of last year.
In the flat glass business unit, domestic and exports sales
volumes for both construction and auto glass rose although foreign
subsidiary sales fell 25 percent reflecting the weak Spanish and
U.S. construction markets, says Vitro CEO Hugo Lara.
He adds, Although EBITDA was affected by price weakness and
declining volume in glass containers, poor performance from our
foreign subs at flat glass and a 17 percent natural gas price increase,
the impact was offset by the strong delivery from both our domestic
float glass and auto glass operations. EBITDA also benefited from
inventory fluctuation in the income statement by approximately $7
million during the quarter versus the second quarter of 2009, along
with the fully implemented cost reduction program, concluded in
the third quarter of 2009, and a peso appreciation when measured
Though the company recently had announced temporary closing of
several facilities due to flooding caused by Hurricane Alex, Vitro
reports that its auto glass facility in Garcia, Neuvo, Leon, Mexico,
has been completely restored and [is] operating under normal
HERE for related story.)
One of the two float glass facilities that was shut down has now
been restored, and the second is expected to be fully operational
around the first week of September, according to the company.
Looking forward, our 2010 consolidated EBITDA guidance range
of between US$205-215 million appears to fall short when viewed
in the context of Vitro's 2Q'10 LTM EBITDA, says chief restructuring
officer. Claudio Del Valle. However, strength in the domestic
auto and construction markets are likely to be more than offset
by continued weakness in foreign subsidiaries and a possible reduction
in demand of glass containers as a consequence of a rainy summer.
Ongoing increases in natural gas prices, as reflected in the price
differential between the forward curve and last year prices are
also expected to impact results in the second half of the year.
In addition, we have not yet determined the full impact on EBITDA
of the damage caused by Hurricane Alex. As a result, we plan to
review and if necessary will adjust guidance in the third quarter
HERE for full text of statement from Vitro.
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