6-K 1 madeco.htm J

 

 

 

 

 

 

FOR IMMEDIATE RELEASE

 

 

 

 

MADECO S.A. ANNOUNCES

CONSOLIDATED RESULTS FOR THE THIRD QUARTER 2005

 

 

 

(Santiago, Chile 26 October 2005) Madeco S.A. ("Madeco") (NYSE ticker MAD) announced today its consolidated financial results in Chilean GAAP for the Third Quarter ending on September 30, 2005. All figures are expressed in Chilean pesos as of September 30, 2005. The conversions to U.S. dollars expressed in this report are based on the exchange rate effective on that same date (US$1.00 = Ch$529.20) and UF1.00 = Ch$17,717.56 as of September 30, 2005.

 

 

  1. Highlights

    • By the third quarter of 2005, the Company obtained a net income of Ch$10,091 million, which was 27.4% higher than the Ch$7,919 million registered in the same period of 2004.

    • Net income for the third quarter was Ch$1,589 million, which was 47.0% less than the Ch$2,998 million obtained in the third quarter of 2004, due to a lower result from price-level restatement of Ch$1,822 million. The operating income, nevertheless, grew 5.0%.

    • By the third quarter, revenues increased 7.1%, totaling Ch$273,649 million. Volume sales increased 0.2%. The volume sales in 3Q05 dropped 3.3% compared with 3Q04.

    • The operating income accumulated at 30 September 2005 was Ch$21,682 million, which is 3.4% higher than that of the previous year.

    • As of September 30, 2005, debt with banks increased 4.0% and debt with the public (bonds) dropped 11.7% in comparison with the figures for 2004.

    1. Consolidated Income Statement Highlights (Exhibits 1 & 2)

      2. Net Income In 3Q05 the net income reached Ch$1,589 million, 47% lower than the Ch$2,998 million obtained in the previous year. This drop was due to a lower result from price-level restatement of Ch$1,822 million.

      Revenues In 3Q05, revenues totaled Ch$84,587 million, a 3.8% drop compared with the same period of the previous year. Basically, this is a consequence of lower volume sales in the Brass Mills business unit (-11.2%) and in a lesser extent in the Wire & Cable business unit (-4.5% excluding copper rods).

      Gross Income The gross income was Ch$12,434 million, which was 3.4% higher than the Ch$12,026 million of the previous year. This increase can be explained basically by a greater margin in the units of Wire & Cable (increase of 35.7%) and Aluminum Profiles that especially compensated the lower margin of the Brass Mills unit. The margin, in relation to the sale, increased 1.0 percentile points, reaching 14.7% in 3Q05.

      Operating Income In 3Q05 the operational result amounted to Ch$6.626 million, which was 5.0% higher than the Ch$6,313 million obtained the previous year. This is a consequence of the 3.4% increase in the gross income and an increase of only 1.7% in the SG&A expenses.

      Non-Operating Results The Company's non-operating loss in 3Q05 amounted to Ch$3,931 million, which is 92.8% higher than the Ch$2,039 million loss reported in 3Q04. A drop of Ch $1,822 million in price-level restatement this; the financial expenses increased in only Ch$54 million.

      This lower result is explained mainly by Ch$651 million from exchange rate effect in Ficap (Brazil), Ch$634 million from Indeco (Peru) and of Ch$321 million from monetary restatement in Chile (CPI September 1.0%).

      Income Tax During 3Q05 income tax reached an amount of Ch$914 million, a 10.1% less than the charge of Ch$1,016 million of 3Q04. This reduction originates fundamentally from the Ch$74 million drop in taxes of the Peruvian subsidiary Indeco (Wire&Cable), and of Ch$67 million less in Alusa (Flexible Packaging).

      Minority interest The Company's minority interest is reflected mainly in the portion of income/losses corresponding to the participation of the minority shareholders in the subsidiaries Alusa, Indeco and Indalum. In 3Q05, the Company's minority interest reached losses for Ch$193 million compared with the losses of Ch$260 million in 3Q04.

    2. Operating Income by Business Unit (Exhibits 3 to 6)

      3. Wire & Cable Revenues in 3Q05 amounted to Ch$44,930 million of which Ch$7,947 million originate from the sale of copper rods and the remaining Ch$36,983 million from the sale of cables. In relation to 3Q04, sales increased 0.8% with a volume sales increase of 1.1%. With the exception of Brazil, the volume sales increased in all the countries: Chile +4.3%, Argentina +14.5% and Peru +33.1%. The volume sales decreased 21.6% in Brazil (Ficap), a drop that is related to a change in the product mix (an increase in aluminum cables) and to temporary inconveniences in invoicing because of the implementation of the ERP SAP.

      COGS amounted to Ch$37,487 million in 3Q05, a 4.1% less than the Ch$39,107 million recorded the previous year. This is the result, mainly, of the volume sales decrease in Brazil. At the same time, the 3Q05 margins are higher than those registered in the year 2004, with which the drop in volume sales in Brazil is evidenced more in lower COGS than in lower revenues.

      SG&A expenses amounted to Ch$2,789 million in 3Q04 and Ch$3,053 million in 3Q05. This increase (9.5%) is related fundamentally to non-recurring spending associated to the implementation of the ERP SAP.

      The operating income totaled Ch$4,390 million in 3Q05 versus Ch$2,697 million in 3Q04. The operating margin increased from 6.0% in 3Q04 to 9.8% in 3Q05.

      Brass Mills Revenues in 3Q05 amounted to Ch$22,057 million, which is 11.0% lower compared with the Ch$24,797 obtained the previous year. This decrease is related to a 11.2% volume sales decrease which is due to the volume sales decrease of Madeco Chile (9.2%) and of the Coin business (312 tons less).

      The COGS amounted to Ch$20,392 million in 3Q05, a 5.0% lower than the Ch$21,460 million of 3Q04. This decrease is due mainly to the volume sales decrease.

      The SG&A expenses were Ch$1,261 million in 3Q05, a 4.8% higher than the Ch$1,203 million of the previous year.

      The operating income totaled Ch$404 million, a decrease of 81.1% with regard to the Ch$2,812 million of 3Q04. This is due mainly to the margin decrease in Chile as a result of the greater pressure exerted by the competition and imports. The operating margin fell from 8.6% to 1.8%.

      Flexible Packaging Revenues in 3Q05 amounted to Ch$10,663 million, a reduction of 10.5% with regard to the Ch$11,913 million of the previous year. Volume sales originating in the operations in Argentina grew 17.3%, from 1,034 tons in 3Q04 to 1,213 tons in 3Q05. In Chile, there was a 17.4% volume sales decrease, from 3,128 tons to 2,584 tons. This was due fundamentally to the fact that the 3Q04 tons include the sales of Alufoil, the Chilean subsidiary of Alusa, which stopped operating at the end of 2004, and to a lesser extent, to the changes undertaken in the mix of clients.

      COGS dropped 11.3%, from Ch$10,147 million in 3Q04 to Ch$9,003 million in 3Q05, mainly as a result of decreased volume sales.

      Gross income dropped 6.0%, mainly as a result of lower revenues (because of the sale of Alufoil in 2004).

      SG&A expenses amounted to Ch$669 million in 3Q05, a 25.2% lower than the Ch$894 million presented in 3Q04. This decrease is due to the closing of operations at the subsidiary Alufoil by the end of 2004.

      Operating income increased 13.6%, from Ch$872 million in 3Q04 to Ch$991 million in 3Q05. This increase is a result of the decrease in SG&A expenses, which more than compensated the 6.0% drop in the operating income.

      The operating margin increased 2.0 percentage points, from 7.3% to 9.3%.

      Aluminum Profiles Net sales in 3Q05 were Ch$6,937 million, a 5.0% higher than the Ch$6.609 million of the previous year. This is the result of the increased volume sales of aluminum profiles, which rose 8.4%, from 2,392 tons in 3Q04 to 2,593 tons in 3Q05.

      COGS amounted to Ch$5,271 million in 3Q05, a 1.9% higher than those for the same period of the previous year, due mainly to the volume sales increase and higher price of the raw material (aluminum), which was compensated partially by improvements in productivity.

      SG&A expenses amounted to Ch$825 million in 3Q05, practically the same as the Ch$826 million registered the previous year.

      Operating income amounted to Ch$841 million in 3Q05, a 37.6% higher than the Ch$611 million of 3Q04. This increase is the result of the 15.9% increase in gross margin, with SG&A practically constant. We must point out that, as a percentage of the sales, the operating income increased 2.3 percentage points.

      The operating margin increased 2.9 percentage points, from 9.24% to 12.1%. This increase is due basically to a volume sales increase and improvements in productivity.

    3. Balance Sheet (Exhibit 7)

Assets The Company's total assets as of September 30, 2005 amounted to Ch$352,263 million, a 3.9% lower than last year.

Current Assets

Amounted to Ch$166,454 million, a 6.4% higher than in September 2004. The increase is attributed mainly to larger inventories (+Ch$6,315 million) and bigger accounts receivable (+Ch$6,000 million), as a result of the increase in commercial activity and the rise in the raw materials in relation to 2004. This was offset partially by the smaller amount of recoverable taxes (-Ch$2,547 million).

Fixed Assets

Amounted to Ch$148,337 million in September 2005, a 9.8% lower than the same period of the previous year, as a consequence of the appreciation of the Chilean peso with regard to the dollar.

Other Assets

Reached Ch$37.471 million in September 2005, a 18.3% lower than in September 2004. This is due to the reduction in the value of the investments that Madeco has abroad which have dropped due to the appreciation of the Chilean peso with regard to the dollar.

Liabilities Total liabilities at 30 September 2005 amounted to Ch$178,836 million, a 4.0% less than in the previous year.

Bank debt

Amounted to Ch$100,815 as of September 30, 2005, a 4.0% increase with regard to the same period of the previous year. This originates mainly in the increased debt of the Chilean subsidiaries to finance working capital needs resulting from a higher level of operations.

Bonds

The debt in bonds amounted to Ch$30,417 million at September 2005, a decrease of 11.7% with regard to the same period of the previous year. This reduction is the result of having redeemed the Series A Bond prior to maturity (15 December 2005), which meant a disbursement of approximately UF 2.0 million. The prepayment was financed with the issuing of the Series D bond, for a total of UF 1.8 million and with an interest rate of 5.0% (compared with 7.25% of the Series A Bond).

Shareholders'Equity Total Shareholders'Equity at September 2005 was Ch$163,347 million, a decrease of 3.6% versus September 2004.

Paid-in Capital

At 30 September 2005, the paid-in capital was Ch$203,256 million versus Ch$199,876 million recorded at September 2004. On 29 October 2004, 182,147,724 shares were subscribed and for which Madeco received a total of Ch$4,372 million.

Share Premium

Increased from Ch$38,256 million (September 2004) to Ch$39,382 million in September 2005.

Other Reserves

Dropped from Ch$23,218 million in September 2004 to Ch$1,708 million in September 2005, as a result of the appreciation of the peso and other foreign currencies between both periods and their impact on the equity according to the application of the BT64 in relation with investments abroad.

Accumulated Losses

Amounted to Ch$80,999 million of loss at September 2005 versus a loss of Ch$91,885 million at September 2004.

For further information contact:

Sergio Dussaillant Ch.

Investor Relations

Tel. : (56 2) 520-1380

Fax : (56 2) 520-1545

E-mail : sdc@madeco.cl

Web Site : www.madeco.cl

***************

Madeco, formerly Manufacturas de Cobre MADECO S.A., was incorporated in 1944 as an open corporation under the laws of the Republic of Chile and currently has operations in Chile, Brazil, Peru and Argentina. Madeco is a leading Latin American manufacturer of finished and semi-finished non-ferrous products based on copper, aluminum and related alloys, as well as a manufacturer of flexible packaging products for use in the packaging of mass consumer products such as food, snacks and cosmetics products.

Readers are cautioned not to place undue reliance on the forward looking statements included in the above text, which speak only as the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward- looking statements which may be made to reflect events or circumstances after the date hereof, including, without limitation, changes in the Company's business strategy or planned capital expenditures, or to reflect the occurrence of unanticipated events.

 

Exhibit 1: Consolidated Income Statement

(Third Quarter)

Ch$ millions

US$ millions (1)

3Q04

3Q05

% Change

3Q04

3Q05

% Change

Revenues

87.912

84.587

-3,8%

144,4

159,8

10,7%

COGS

(75.886)

(72.153)

-4,9%

(124,6)

(136,3)

9,4%

Gross Income

12.026

12.434

3,4%

19,7

23,5

19,0%

SG&A

(5.712)

(5.808)

1,7%

(9,4)

(11,0)

17,0%

Operating Income

6.313

6.626

5,0%

10,4

12,5

20,8%

Financial income

230

78

-66,1%

0,4

0,1

-61,0%

Equity in earning (losses) of related companies

126

16

-87,5%

0,2

0,0

-85,6%

Other non-operating income

(131)

8

N/A

(0,2)

0,0

N/A

Financial expenses

(2.279)

(2.333)

2,4%

(3,7)

(4,4)

17,8%

Positive goodwill amortization

(436)

(344)

-21,1%

(0,7)

(0,6)

-9,2%

Other non-operating expenses

(921)

(904)

-1,8%

(1,5)

(1,7)

12,9%

Price-level restatement

1.370

(452)

N/A

2,3

(0,9)

N/A

Non-Operating Results

(2.039)

(3.931)

92,8%

(3,3)

(7,4)

121,8%

Income (Loss) before income taxes

4.275

2.696

-36,9%

7,0

5,1

-27,4%

Income tax

(1.016)

(914)

-10,1%

(1,7)

(1,7)

3,4%

Minority interest

(260)

(193)

-26,0%

(0,4)

(0,4)

-14,8%

Negative goodwill amortization

-

-

N/A

0,0

0,0

N/A

Net Income (Loss)

2.998

1.589

-47,0%

4,9

3,0

-39,0%

Gross Margin

13,7%

14,7%

-

13,7%

14,7%

-

SG&A / Sales

6,5%

6,9%

-

6,5%

6,9%

-

Operating Margin

7,2%

7,8%

-

7,2%

7,8%

-

1 Exchange rate on September-05 2005 US$1.00 = 529.2

Exchange rate on September-05 2004 US$1.00 = 608.9

 

 

 

 

 

 

 

 

Exhibit 2: Consolidated Income Statement

(Nine Months Ended September-05)

Ch$ millions

US$ millions (1)

YTD Sep 04

YTD Sep 05

% Change

YTD Sep 04

YTD Sep 05

% Change

Revenues

255.476

273.649

7,1%

419,6

517,1

23,2%

COGS

(216.984)

(234.312)

8,0%

(356,4)

(442,8)

24,2%

Gross Income

38.493

39.337

2,2%

63,2

74,3

17,6%

SG&A

(17.520)

(17.655)

0,8%

(28,8)

(33,4)

15,9%

Operating Income

20.972

21.682

3,4%

34,4

41,0

19,0%

Financial income

941

611

-35,0%

1,5

1,2

-25,3%

Equity in earning (losses) of related companies

107

74

-31,2%

0,2

0,1

-20,8%

Other non-operating income

201

1.130

462,0%

0,3

2,1

546,6%

Financial expenses

(7.879)

(7.008)

-11,0%

(12,9)

(13,2)

2,3%

Positive goodwill amortization

(1.460)

(1.280)

-12,3%

(2,4)

(2,4)

0,9%

Other non-operating expenses

(2.354)

(2.134)

-9,4%

(3,9)

(4,0)

4,3%

Price-level restatement

(396)

493

N/A

(0,7)

0,9

N/A

Non-Operating Results

(10.840)

(8.115)

-25,1%

(17,8)

(15,3)

-13,9%

Income (Loss) before income taxes

10.132

13.568

33,9%

16,6

25,6

54,1%

Income tax

(1.578)

(3.060)

93,9%

(2,6)

(5,8)

123,1%

Minority interest

(635)

(417)

-34,4%

(1,0)

(0,8)

-24,5%

Negative goodwill amortization

-

-

N/A

0,0

0,0

N/A

Net Income (Loss)

7.919

10.091

27,4%

13,0

19,1

46,6%

Gross Margin

15,1%

14,4%

-

15,1%

14,4%

-

SG&A / Sales

6,9%

6,5%

-

6,9%

6,5%

-

Operating Margin

8,2%

7,9%

-

8,2%

7,9%

-

1 Exchange rate on September-05 2005 US$1.00 = 529.2

Exchange rate on September-05 2004 US$1.00 = 608.9

 

 

 

 

 

 

Exhibit 3: EBITDA by Business Unit

(Third Quarter)

Third Quarter 2004

Ch$ million

COPPER ROD

WIRE & CABLE

BRASS MILLS

F. PACKAGING

PROFILES

Total

Revenues

6.532

38.061

24.797

11.913

6.609

87.912

COGS

(6.269)

(32.838)

(21.460)

(10.147)

(5.172)

(75.886)

Gross Income

263

5.223

3.337

1.766

1.437

12.026

SG&A

(17)

(2.772)

(1.203)

(894)

(826)

(5.712)

Operating Income

246

2.451

2.134

872

611

6.314

EBITDA

243

3.844

2.812

1.415

779

9.093

Gross Margin

4,0%

13,7%

13,5%

14,8%

21,7%

13,7%

SG&A / Sales

0,3%

7,3%

4,9%

7,5%

12,5%

6,5%

EBITDA Margin

3,7%

10,1%

11,3%

11,9%

11,8%

10,3%

Segment Contribution

% Revenues

7,4%

43,3%

28,2%

13,6%

7,5%

100,0%

% EBITDA

2,7%

42,3%

30,9%

15,6%

8,6%

100,0%

Third Quarter 2005

Ch$ million

COPPER ROD

WIRE & CABLE

BRASS MILLS

F. PACKAGING

PROFILES

Total

Revenues

7.947

36.983

22.057

10.663

6.937

84.587

COGS

(7.420)

(30.067)

(20.392)

(9.003)

(5.271)

(72.153)

Gross Income

527

6.916

1.665

1.660

1.666

12.434

SG&A

(26)

(3.027)

(1.261)

(669)

(825)

(5.808)

Operating Income

501

3.889

404

991

841

6.626

EBITDA

511

5.023

1.021

1.488

1.094

9.137

Gross Margin

6,6%

18,7%

7,5%

15,6%

24,0%

14,7%

SG&A / Sales

0,3%

8,2%

5,7%

6,3%

11,9%

6,9%

EBITDA Margin

6,4%

13,6%

4,6%

14,0%

15,8%

10,8%

Segment Contribution

% Revenues

9,4%

43,7%

26,1%

12,6%

8,2%

100,0%

% EBITDA

5,6%

55,0%

11,2%

16,3%

12,0%

100,0%

2005 versus 2004

% change

COPPER ROD

WIRE & CABLE

BRASS MILLS

F. PACKAGING

PROFILES

Total

Revenues

21,7%

-2,8%

-11,0%

-10,5%

5,0%

-3,8%

COGS

18,4%

-8,4%

-5,0%

-11,3%

1,9%

-4,9%

Gross Income

100,4%

32,4%

-50,1%

-6,0%

15,9%

3,4%

SG&A

52,9%

9,2%

4,8%

-25,2%

-0,1%

1,7%

Operating Income

103,7%

58,7%

-81,1%

13,6%

37,6%

4,9%

EBITDA

110,3%

30,7%

-63,7%

5,2%

40,4%

0,5%

 

 

 

 

 

 

Exhibit 4: EBITDA by Business Unit

(Nine Months Ended September-05)

YTD Sep 04

Ch$ million

COPPER ROD

WIRE & CABLE

BRASS MILLS

F. PACKAGING

PROFILES

Total

Revenues

19.761

112.600

66.751

34.841

21.523

255.476

COGS

(18.126)

(96.834)

(56.583)

(29.171)

(16.270)

(216.984)

Gross Income

1.635

15.766

10.168

5.670

5.253

38.492

SG&A

(70)

(8.921)

(3.327)

(2.672)

(2.530)

(17.520)

Operating Income

1.565

6.845

6.841

2.998

2.723

20.972

EBITDA

1.561

11.411

8.806

4.681

3.229

29.688

Gross Margin

8,3%

14,0%

15,2%

16,3%

24,4%

15,1%

SG&A / Sales

0,4%

7,9%

5,0%

7,7%

11,8%

6,9%

EBITDA Margin

7,9%

10,1%

13,2%

13,4%

15,0%

11,6%

Segment Contribution

% Revenues

7,7%

44,1%

26,1%

13,6%

8,4%

100,0%

% EBITDA

5,3%

38,4%

29,7%

15,8%

10,9%

100,0%

YTD Sep 05

Ch$ million

COPPER ROD

WIRE & CABLE

BRASS MILLS

F. PACKAGING

PROFILES

Total

Revenues

23.987

133.438

61.041

33.338

21.845

273.649

COGS

(22.510)

(110.403)

(55.462)

(28.952)

(16.985)

(234.312)

Gross Income

1.477

23.035

5.579

4.386

4.860

39.337

SG&A

(80)

(9.479)

(3.509)

(2.237)

(2.350)

(17.655)

Operating Income

1.397

13.556

2.070

2.149

2.510

21.682

EBITDA

1.408

17.584

3.891

3.792

3.208

29.883

Gross Margin

6,2%

17,3%

9,1%

13,2%

22,2%

14,4%

SG&A / Sales

0,3%

7,1%

5,7%

6,7%

10,8%

6,5%

EBITDA Margin

5,9%

13,2%

6,4%

11,4%

14,7%

10,9%

Segment Contribution

% Revenues

8,8%

48,8%

22,3%

12,2%

8,0%

100,0%

% EBITDA

4,7%

58,8%

13,0%

12,7%

10,7%

100,0%

2004 versus 2005

% change

COPPER ROD

WIRE & CABLE

BRASS MILLS

F. PACKAGING

PROFILES

Total

Revenues

21,4%

18,5%

-8,6%

-4,3%

1,5%

7,1%

COGS

24,2%

14,0%

-2,0%

-0,8%

4,4%

8,0%

Gross Income

-9,7%

46,1%

-45,1%

-22,6%

-7,5%

2,2%

SG&A

14,3%

6,3%

5,5%

-16,3%

-7,1%

0,8%

Operating Income

-10,7%

98,0%

-69,7%

-28,3%

-7,8%

3,4%

EBITDA

-9,8%

54,1%

-55,8%

-19,0%

-0,7%

0,7%

 

 

 

 

Exhibit 5: EBITDA by Business Unit and Country

(Third Quarter)

Third Quarter 2004

Third Quarter 2005

(Ch$ million)

(Ch$ million)

Chile

Peru

Interco.

COPPER ROD

Chile

Peru

Interco.

COPPER ROD

Tons (Third parties)

2.413

1.103

0

3.516

2.208

2.083

0

4.291

Tons (Intercompany)

1.434

1.841

(3.275)

0

2.591

(306)

(2.285)

0

Tons (Total)

3.847

2.944

(3.275)

3.516

4.799

1.777

(2.285)

4.291

Revenues (Third parties)

4.687

1.845

0

6.532

4.899

3.048

0

7.947

Revenues (Intercompany)

2.752

3.155

(5.907)

0

5.657

(657)

(5.000)

0

Total revenues

7.439

5.000

(5.907)

6.532

10.556

2.391

(5.000)

7.947

COGS

(7.355)

(4.866)

5.952

(6.269)

(10.339)

(2.158)

5.077

(7.420)

Gross Income

84

134

45

263

217

233

77

527

SG&A

0

(31)

14

(17)

0

(21)

(5)

(26)

Operating Income

84

103

59

246

217

212

72

501

EBITDA

84

102

57

243

227

213

71

511

Gross Margin

1,1%

2,7%

4,0%

2,1%

9,7%

6,6%

EBITDA Margin

1,1%

2,0%

3,7%

2,2%

8,9%

6,4%

Chile

Brazil

Optical F.

Argentina

Peru

Interco.

WIRE & CABLE

Chile

Brazil

Optical F.

Argentina

Peru

Interco.

WIRE & CABLE

Tons (Third parties)

2.615

7.493

0

530

2.508

0

13.146

3.038

5.874

0

607

3.030

0

12.549

Tons (Intercompany)

(1)

586

0

0

(1)

(584)

0

15

74

0

0

0

(89)

0

Tons (Total)

2.614

8.079

0

530

2.507

(584)

13.146

3.053

5.948

0

607

3.030

(89)

12.549

Kms.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Revenues (Third parties)

9.079

19.465

0

1.346

8.171

0

38.061

11.018

15.926

0

1.185

8.854

0

36.983

Revenues (Intercompany)

428

1.592

0

25

(8)

(2.037)

0

336

12

0

(33)

0

(315)

0

Total revenues

9.507

21.057

0

1.371

8.163

(2.037)

38.061

11.354

15.938

0

1.152

8.854

(315)

36.983

COGS

(7.887)

(19.099)

0

(1.283)

(6.481)

1.912

(32.838)

(9.696)

(12.754)

0

(1.017)

(7.019)

419

(30.067)

Gross Income

1.620

1.958

0

88

1.682

(125)

5.223

1.658

3.184

0

135

1.835

104

6.916

SG&A

(686)

(1.245)

0

(84)

(440)

(317)

(2.772)

(472)

(1.742)

0

(86)

(442)

(285)

(3.027)

Operating Income

934

713

0

4

1.242

(442)

2.451

1.186

1.442

0

49

1.393

(181)

3.889

EBITDA

1.318

1.521

0

5

1.474

(474)

3.844

1.532

2.088

0

61

1.566

(224)

5.023

Gross Margin

17,0%

9,3%

6,4%

20,6%

13,7%

14,6%

20,0%

11,7%

20,7%

18,7%

EBITDA Margin

13,9%

7,2%

0,4%

18,1%

10,1%

13,5%

13,1%

5,3%

17,7%

13,6%

Chile

Coin

Argentina

Interco.

BRASS MILLS

Chile

Coin

Argentina

Interco.

BRASS MILLS

Tons (Third parties)

8.122

843

677

0

9.642

7.374

531

655

0

8.560

Tons (Intercompany)

661

23

126

(810)

0

240

55

57

(352)

0

Tons (Total)

8.783

866

803

(810)

9.642

7.614

586

712

(352)

8.560

Revenues (Third parties)

20.377

2.849

1.571

0

24.797

18.745

1.917

1.395

0

22.057

Revenues (Intercompany)

2.227

385

283

(2.895)

0

2.415

199

92

(2.706)

0

Total revenues

22.604

3.234

1.854

(2.895)

24.797

21.160

2.116

1.487

(2.706)

22.057

COGS

(19.721)

(2.968)

(1.593)

2.822

(21.460)

(19.873)

(2.017)

(1.260)

2.758

(20.392)

Gross Income

2.883

266

261

(73)

3.337

1.287

99

227

52

1.665

SG&A

(758)

(176)

(142)

(127)

(1.203)

(906)

(121)

(138)

(96)

(1.261)

Operating Income

2.125

90

119

(200)

2.134

381

(22)

89

(44)

404

EBITDA

2.656

229

173

(246)

2.812

877

58

135

(49)

1.021

Gross Margin

12,8%

8,2%

14,1%

13,5%

6,1%

4,7%

15,3%

7,5%

EBITDA Margin

11,8%

7,1%

9,3%

11,3%

4,1%

2,7%

9,1%

4,6%

Chile

Argentina

Interco.

F. PACKAGING

Chile

Argentina

Interco.

F. PACKAGING

Tons (Third parties)

3.128

1.034

0

4.162

2.584

1.213

0

3.797

Tons (Intercompany)

0

0

0

0

0

0

0

0

Tons (Total)

3.128

1.034

0

4.162

2.584

1.213

0

3.797

Revenues (Third parties)

9.134

2.779

0

11.913

8.036

2.626

1

10.663

Revenues (Intercompany)

0

0

0

0

0

0

0

0

Total revenues

9.134

2.779

0

11.913

8.036

2.626

1

10.663

COGS

(7.752)

(2.395)

0

(10.147)

(6.773)

(2.230)

0

(9.003)

Gross Income

1.382

384

0

1.766

1.263

396

1

1.660

SG&A

(599)

(168)

(127)

(894)

(428)

(193)

(48)

(669)

Operating Income

783

216

(127)

872

835

203

(47)

991

EBITDA

1.121

422

(128)

1.415

1.191

345

(48)

1.488

Gross Margin

15,1%

13,8%

14,8%

15,7%

15,1%

15,6%

EBITDA Margin

12,3%

15,2%

11,9%

14,8%

13,1%

14,0%

Chile

PROFILES

Chile

PROFILES

Tons (Third parties)

2.392

2.392

2.593

2.593

Tons (Intercompany)

0

0

0

0

Tons (Total)

2.392

2.392

2.593

2.593

Revenues (Third parties)

6.609

6.609

6.937

6.937

Revenues (Intercompany)

0

0

0

0

Total revenues

6.609

6.609

6.937

6.937

COGS

(5.172)

(5.172)

(5.271)

(5.271)

Gross Income

1.437

1.437

1.666

1.666

SG&A

(826)

(826)

(825)

(825)

Operating Income

611

611

841

841

EBITDA

779

779

1.094

1.094

Gross Margin

21,7%

21,7%

24,0%

24,0%

EBITDA Margin

11,8%

11,8%

15,8%

15,8%

 

 

 

 

Exhibit 6: EBITDA by Business Unit and Country

(Nine Months Ended September-05)

Year to Date 2004

Year to Date 2005

(Ch$ million)

(Ch$ million)

Chile

Peru

Interco.

COPPER ROD

Chile

Peru

Interco.

COPPER ROD

Tons (Third parties)

7.032

3.600

0

10.632

6.473

5.138

0

11.611

Tons (Intercompany)

4.311

5.517

(9.828)

0

5.562

3.171

(8.733)

0

Tons (Total)

11.343

9.117

(9.828)

10.632

12.035

8.309

(8.733)

11.611

Revenues (Third parties)

13.184

6.577

0

19.761

13.937

10.050

0

23.987

Revenues (Intercompany)

8.197

10.425

(18.622)

0

11.958

6.067

(18.025)

0

Total revenues

21.381

17.002

(18.622)

19.761

25.895

16.117

(18.025)

23.987

COGS

(20.288)

(16.192)

18.354

(18.126)

(25.154)

(15.287)

17.931

(22.510)

Gross Income

1.093

810

(268)

1.635

741

830

(94)

1.477

SG&A

0

(143)

73

(70)

0

(126)

46

(80)

Operating Income

1.093

667

(195)

1.565

741

704

(48)

1.397

EBITDA

1.093

668

(200)

1.561

752

705

(49)

1.408

Gross Margin

5,1%

4,8%

8,3%

2,9%

5,1%

6,2%

EBITDA Margin

5,1%

3,9%

7,9%

2,9%

4,4%

5,9%

Chile

Brazil

Optical F.

Argentina

Peru

Interco.

WIRE & CABLE

Chile

Brazil

Optical F.

Argentina

Peru

Interco.

WIRE & CABLE

Tons (Third parties)

7.296

20.558

0

1.474

7.964

0

37.292

8.657

19.946

0

1.584

9.472

0

39.659

Tons (Intercompany)

36

1.675

0

0

130

(1.841)

0

36

854

0

202

0

(1.092)

0

Tons (Total)

7.332

22.233

0

1.474

8.094

(1.841)

37.292

8.693

20.800

0

1.786

9.472

(1.092)

39.659

Kms.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Revenues (Third parties)

23.722

57.338

0

3.706

27.834

0

112.600

30.828

65.156

0

4.003

33.451

0

133.438

Revenues (Intercompany)

1.168

4.510

0

51

264

(5.993)

0

1.035

2.158

0

300

4

(3.497)

0

Total revenues

24.890

61.848

0

3.757

28.098

(5.993)

112.600

31.863

67.314

0

4.303

33.455

(3.497)

133.438

COGS

(21.209)

(54.625)

0

(3.386)

(23.144)

5.530

(96.834)

(27.339)

(55.448)

0

(3.782)

(27.373)

3.539

(110.403)

Gross Income

3.681

7.223

0

371

4.954

(463)

15.766

4.524

11.866

0

521

6.082

42

23.035

SG&A

(1.944)

(4.155)

0

(255)

(1.595)

(972)

(8.921)

(1.412)

(5.469)

0

(297)

(1.510)

(791)

(9.479)

Operating Income

1.737

3.068

0

116

3.359

(1.435)

6.845

3.112

6.397

0

224

4.572

(749)

13.556

EBITDA

2.913

5.786

0

117

4.128

(1.533)

11.411

4.146

8.796

0

254

5.232

(844)

17.584

Gross Margin

14,8%

11,7%

9,9%

17,6%

14,0%

14,2%

17,6%

12,1%

18,2%

17,3%

EBITDA Margin

11,7%

9,4%

3,1%

14,7%

10,1%

13,0%

13,1%

0,0%

15,6%

13,2%

Chile

Coin

Argentina

Interco.

BRASS MILLS

Chile

Coin

Argentina

Interco.

BRASS MILLS

Tons (Third parties)

21.524

2.279

1.901

0

25.704

19.988

1.055

1.976

0

23.019

Tons (Intercompany)

1.831

54

276

(2.161)

0

1.304

121

246

(1.671)

0

Tons (Total)

23.355

2.333

2.177

(2.161)

25.704

21.292

1.176

2.222

(1.671)

23.019

Revenues (Third parties)

54.921

7.024

4.806

0

66.751

51.707

4.376

4.958

0

61.041

Revenues (Intercompany)

6.716

783

694

(8.193)

0

6.741

473

586

(7.800)

0

Total revenues

61.637

7.807

5.500

(8.193)

66.751

58.448

4.849

5.544

(7.800)

61.041

COGS

(52.615)

(7.338)

(4.624)

7.994

(56.583)

(54.158)

(4.352)

(4.846)

7.894

(55.462)

Gross Income

9.022

469

876

(199)

10.168

4.290

497

698

94

5.579

SG&A

(2.108)

(492)

(454)

(273)

(3.327)

(2.497)

(286)

(477)

(249)

(3.509)

Operating Income

6.914

(23)

422

(472)

6.841

1.793

211

221

(155)

2.070

EBITDA

8.483

380

584

(641)

8.806

3.279

441

389

(218)

3.891

Gross Margin

14,6%

6,0%

15,9%

15,2%

7,3%

10,2%

12,6%

9,1%

EBITDA Margin

13,8%

4,9%

10,6%

13,2%

5,6%

9,1%

7,0%

6,4%

Chile

Argentina

Interco.

F. PACKAGING

Chile

Argentina

Interco.

F. PACKAGING

Tons (Third parties)

8.744

3.199

0

11.943

7.680

3.487

0

11.167

Tons (Intercompany)

0

0

0

0

0

0

0

0

Tons (Total)

8.744

3.199

0

11.943

7.680

3.487

0

11.167

Revenues (Third parties)

25.660

9.181

0

34.841

23.897

9.440

1

33.338

Revenues (Intercompany)

0

0

0

0

0

0

0

0

Total revenues

25.660

9.181

0

34.841

23.897

9.440

1

33.338

COGS

(21.328)

(7.843)

0

(29.171)

(20.704)

(8.248)

0

(28.952)

Gross Income

4.332

1.338

0

5.670

3.193

1.192

1

4.386

SG&A

(1.818)

(551)

(303)

(2.672)

(1.472)

(631)

(134)

(2.237)

Operating Income

2.514

787

(303)

2.998

1.721

561

(133)

2.149

EBITDA

3.488

1.495

(302)

4.681

2.803

1.123

(134)

3.792

Gross Margin

16,9%

14,6%

16,3%

13,4%

12,6%

13,2%

EBITDA Margin

13,6%

16,3%

13,4%

11,7%

11,9%

11,4%

Chile

PROFILES

Chile

PROFILES

Tons (Third parties)

7.783

7.783

8.125

8.125

Tons (Intercompany)

0

0

0

0

Tons (Total)

7.783

7.783

8.125

8.125

Revenues (Third parties)

21.523

21.523

21.845

21.845

Revenues (Intercompany)

0

0

0

0

Total revenues

21.523

21.523

21.845

21.845

COGS

(16.270)

(16.270)

(16.985)

(16.985)

Gross Income

5.253

5.253

4.860

4.860

SG&A

(2.530)

(2.530)

(2.350)

(2.350)

Operating Income

2.723

2.723

2.510

2.510

EBITDA

3.229

3.229

3.208

3.208

Gross Margin

24,4%

24,4%

22,2%

22,2%

EBITDA Margin

15,0%

15,0%

14,7%

14,7%

 

 

 

 

Exhibit 7: Consolidated Balance Sheet

Ch$ millions

US$ millions (1)

YTD Sep 04

YTD Sep 05

YTD Sep 04

YTD Sep 05

Cash

2.847

2.883

4,7

5,4

Time deposits and marketable securities

878

994

1,4

1,9

Accounts receivable

62.380

65.643

102,4

124,0

Accounts receivable from related companies

1.273

4.010

2,1

7,6

Inventories

69.690

76.005

114,5

143,6

Recoverable taxes

5.931

3.384

9,7

6,4

Prepaid expenses and other current assets

13.394

13.534

22,0

25,6

Current Assets

156.393

166.454

256,8

314,5

Property, plant and equipment (net)

164.450

148.337

270,1

280,3

Investments

9.323

8.070

15,3

15,2

Goodwill (net)

24.835

19.469

40,8

36,8

Long-term receivables

930

399

1,5

0,8

Other

10.776

9.534

17,7

18,0

Other Assets

45.863

37.471

75,3

70,8

ASSETS

366.706

352.263

602,2

665,7

Short-term bank borrowings

20.062

38.247

32,9

72,3

Current portion of long-term bank and other debt

6.514

42.926

10,7

81,1

Current portion of bonds payable

4.247

4.474

7,0

8,5

Current portion of long-term liabilities

971

503

1,6

0,9

Dividends payable

3

3

0,0

0,0

Accounts payable

12.471

10.962

20,5

20,7

Notes payable

9.255

6.944

15,2

13,1

Other payables

596

279

1,0

0,5

Notes and accounts payable to related companies

469

289

0,8

0,5

Accrued expenses

8.588

7.098

14,1

13,4

Withholdings payable

1.720

1.875

2,8

3,5

Deferred income

264

787

0,4

1,5

Income taxes

0

0

0,0

0,0

Other current liabilities

921

1.309

1,5

2,5

Current Liabilities

66.081

115.696

108,5

218,6

Long-term bank and other debt

85.880

33.903

141,0

64,1

Bonds payable

30.216

25.943

49,6

49,0

Accrued expenses

4.039

3.294

6,6

6,2

Long-Term Liabilities

120.135

63.140

197,3

119,3

Minority Interest

11.025

10.080

18,1

19,0

Common stock ( 4,120,088,408 shares authorized

and outstanding, without nominal (par value)

199.876

203.256

328,3

384,1

Share premium

38.256

39.382

62,8

74,4

Reserves

23.218

1.708

38,1

3,2

Retained earnings

(91.885)

(80.999)

(151)

(153)

Total Shareholders' Equity

169.465

163.347

278,3

308,7

LIABILITIES AND SHAREHOLDERS' EQUITY

366.706

352.263

602,2

665,7

1 Exchange rate on September-05 2005 US$1.00 = 529.2

Exchange rate on September-05 2004 US$1.00 = 608.9

 

 

 

 

Exhibit 8: Consolidated Statement of Cash Flow

Ch$ millions

US$ millions (1)

YTD Sep 04

YTD Sep 05

YTD Sep 04

YTD Sep 05

Cash received from customers

287.476

324.192

472,1

612,6

Financial income received

896

880

1,5

1,7

Dividends and other distributions

31

-

0,1

-

Other incomes

2.075

190

3,4

0,4

Payments to suppliers and employees

(282.127)

(304.359)

(463,3)

(575,1)

Interests paid

(8.067)

(9.708)

(13,2)

(18,3)

Income taxes paid

(441)

(1.949)

(0,7)

(3,7)

Other expenses

(239)

(426)

(0,4)

(0,8)

Added Value Tax and others

(4.868)

(2.833)

(8,0)

(5,4)

Cash Flow from Operating Activities

(5.263)

5.988

(8,6)

11,3

Sale of Property, Plant and Equipment

967

308

1,6

0,6

Sale of permanent investments

126

124

0,2

0,2

Sale of other investments

29.226

-

48,0

-

Other proceeds from investments

25

980

0,0

1,9

Acquisition of fixed assets

(4.260)

(8.872)

(7,0)

(16,8)

Permanent investments

(9)

(185)

(0,0)

(0,3)

Other disbursements

-

(2.416)

-

(4,6)

Cash Flow used in Investing Activities

26.075

(10.060)

42,8

(19,0)

Issuance of shares

5.903

-

9,7

-

Loans obtained

28.503

48.296

46,8

91,3

Registered loans from related companies

-

-

-

-

Other financing sources

-

-

-

-

Dividends paid

(97)

(102)

(0,2)

(0,2)

Repayments of bank borrowings

(26.337)

(46.428)

(43,3)

(87,7)

Repayments of bonds

(26.089)

(1.931)

(42,8)

(3,6)

Payment of expenses related to shares issuance

(118)

-

(0,2)

-

Others

-

(493)

-

(0,9)

Cash Flow provided by Financing Activities

(18.235)

(658)

(29,9)

(1,2)

Net Cash Flow for the Period

2.576

(4.730)

4,2

(8,9)

Effect of price-level restatements on cash and cash equivalents

379

(92)

0,6

(0,2)

Net increase in cash and cash equivalents

2.956

(4.821)

4,9

(9,1)

Cash and cash equivalents at the beginning of year

5.690

13.180

9,3

24,9

Cash and cash equivalents at end of the period

8.646

8.359

14,2

15,8

_____________________

1 Exchange rate on September-05 2005 US$1.00 = 529.2

Exchange rate on September-05 2004 US$1.00 = 608.9