UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July , 2004
Commission File Number: 001-13196
Desc, S.A. de C.V.
(Translation of registrants name into English)
Paseo de los Tamarindos 400-B, Bosques de las Lomas, 05120 Mexico, D.F., Mexico
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ü Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ¨ No þ
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
The following is included in this report on Form 6-K:
Item | ||
1. | English Translation of a Press Release, dated July 21, 2004, announcing Registrants Second Quarter 2004 results | |
2. | Consolidated Financial Statements of Registrant, at June 30, 2004 and 2003, in the format required to be filed with the Mexican Stock Exchange |
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Item 1
DESC ANNOUNCES SECOND QUARTER 2004 RESULTS
Mexico City, July 21, 2004 - Desc, S.A. de C.V. (NYSE: DES; BMV: DESC) announced today its results for the second quarter ended June 30, 2004 (2Q04). Except as noted below, all figures were prepared according to generally accepted accounting principles in Mexico (Mexican GAAP). Unless otherwise noted below, the 2Q03 results have been adjusted to exclude the financial figures for Descs aluminum wheel and adhesive and sealant businesses and the Chiluca real estate project, which were sold in 2003. Management believes that investors can better evaluate and analyze Descs historical and future business trends if they consider results of operations without these divested businesses and real estate project and, thus, unless otherwise noted comparisons below are to the adjusted 2Q03 figures.
The results for 2Q04 demonstrate Descs efforts under a strict expense control to return to profitability by following its strategic plan and focusing on its core businesses. This is reflected in the strength of Descs balance sheet as well as in the stabilization of cash flows.
Highlights
| Sales and exports were 11.7% and 15.3% higher, respectively, when compared to 2Q03. |
| Operating expenses reached 14.6% of sales, which represents a reduction of 9.9% when compared to 2Q03. |
| EBITDA reached US$50 million, which represents an increase of 58.1% when compared to 2Q03. |
| Volume and sales prices increased, which partially offset the rise in raw material costs. |
| There were significant improvements in Descs financial situation, such as a reduction in the debt level and an optimization of its average cost of financing. |
| Desc prepaid US$279 million of its debt, thereby reducing its total debt by approximately 26.6%. |
| Internal cash flow generation completely financed working capital and part of the debt reduction. |
DESC, S.A. DE C.V. and SUBSIDIARIES
Table 1. Consolidated Figures
(Figures in millions of constant Pesos (Ps.) and U.S. dollars (US$))
Desc, S.A. de C.V. And Subsidiaries
2Q04 |
Adjusted 2Q035 |
2Q04 vs. Adjusted 2Q035 |
Actual 2Q03 |
2Q04 vs. 2Q03 |
1Q04 |
2Q04 vs. 1Q04 |
||||||||||||||
Sales (Ps.) 3 |
5,680 | 4,862 | 16.8 | % | 5,999 | -5.3 | % | 5,360 | 6.0 | % | ||||||||||
Sales (US $) 1 |
498 | 446 | 11.7 | % | 550 | -9.3 | % | 486 | 2.6 | % | ||||||||||
Exports (US $) 2 |
241 | 209 | 15.3 | % | 212 | 13.7 | % | 232 | 4.0 | % | ||||||||||
Operating Income (Ps.) 3 |
243 | 23 | 960.2 | % | 461 | -47.3 | % | 248 | -1.8 | % | ||||||||||
Operating Income (US $) 1 |
21 | 2 | 858.1 | % | 42 | -49.6 | % | 23 | -5.2 | % | ||||||||||
Operating Margin |
4.3 | % | 0.5 | % | 4.6 | % | ||||||||||||||
EBITDA (Ps.) 3, 4 |
572 | 351 | 62.8 | % | 805 | -29.0 | % | 564 | 1.3 | % | ||||||||||
EBITDA (US $) 1, 4 |
50 | 32 | 58.1 | % | 74 | -32.0 | % | 51 | -1.7 | % | ||||||||||
Net Majority Income (Ps.) 3 |
-140 | -163 | -14.1 | % | 131 | -207.6 | % | -117 | 19.7 | % | ||||||||||
Net Majority Income (US $) 1 |
-12 | -15 | -20.0 | % | 12 | -204.4 | % | -11 | 9.1 | % |
1 | Figures in U.S. dollars for sales, operating income, EBITDA and net income are calculated using monthly figures in current pesos divided by the average monthly exchange rate. |
2 | All export figures are based on real sales invoiced in U.S. dollars. |
3 | All figures in this report are expressed in constant pesos as of June 30, 2004. |
4 | EBITDA, as used in this press release, is Operating Income (Loss) plus the sum of Depreciation and Amortization, all of which are presented under generally accepted principles in Mexico. EBITDA is presented herein because Desc believes it provides useful information regarding Descs ability to service its debt. EBITDA should not be considered in isolation or as a substitute for Descs consolidated income statements or other financial statements prepared in accordance with Mexican GAAP or as a measure of profitability or liquidity. Please refer to the section entitled Non-GAAP Financial Reconciliation Tables for a reconciliation of EBITDA to Operating Income. |
5 | The Adjusted 2Q03 totals exclude the financial figures for Descs aluminum wheel and adhesive and sealant businesses and the Chiluca real estate project, which were sold. Management believes that investors can better evaluate and analyze Descs historical and future business trends if they consider results of operations without these divested businesses and real estate project. |
Second Quarter 2004 Results
EBITDA
Consolidated EBITDA1 in dollars totaled US$50 million in 2Q04. This represents a significant increase of 58.1% when compared to 2Q032 and a 27.3% increase in the first half of 2004 compared to the same period in 2003, which reflects the improvement in all of the sectors results. In addition, it demonstrates that results have stabilized during the last two quarters.
1 | EBITDA, as used in this press release, is Operating Income (Loss) plus the sum of Depreciation and Amortization, all of which are presented under generally accepted principles in Mexico. EBITDA is presented herein because Desc believes it provides useful information regarding Descs ability to service its debt. EBITDA should not be considered in isolation or as a substitute for Descs consolidated income statements or other financial statements prepared in accordance with Mexican GAAP or as a measure of profitability or liquidity. Please refer to the section entitled Non-GAAP Financial Reconciliation Tables for a reconciliation of EBITDA to Operating Income. |
2 | The adjusted 2003 information excludes the financial figures for Descs aluminum wheel and adhesive and sealant businesses and the Chiluca real estate project, which were sold. Management believes that investors can better evaluate and analyze Descs historical and future business trends if they consider results of operations without these divested businesses and real estate project. |
Operating Expenses
During 2Q04, there was a marked reduction in operating expenses of 9.9% when compared to 2Q031, which is in-line with the goals established at the beginning of 2004.
1 | The adjusted 2003 information excludes the financial figures for Descs aluminum wheel and adhesive and sealant businesses and the Chiluca real estate project, which were sold in 2003. Management believes that investors can better evaluate and analyze Descs historical and future business trends if they consider results of operations without these divested businesses and real estate project. |
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Second Quarter 2004 Results
Debt Structure
During 2Q04, Descs total debt declined by US$279 million, or 26.6%, when compared to 1Q04, from US$1,048 million to US$769 million.
Table 2. Debt Breakdown
(Figures in millions of U.S. dollars)
Mar-31-03 |
Jun-30-03 |
Sep-30-03 |
Dec-31-03 |
Mar-31-04 |
Jun-30-04 | |||||||
Cash |
103 | 82 | 117 | 62 | 61 | 36 | ||||||
Total Debt |
1,082 | 1,069 | 1,084 | 1,052 | 1,048 | 769 | ||||||
Net Debt |
979 | 987 | 967 | 990 | 987 | 733 | ||||||
Interest Coverage |
2.6x | 2.45x | 2.7x | 2.9x | 2.9x | 2.7x | ||||||
Leverage Ratio* |
4.9x | 4.8x | 5.5x | 4.9x | 4.9x | 4.1x |
* | The Leverage Ratio is equal to (Total Debt less Cash plus US$50 million) / EBITDA for the last 12 months. |
As of 4Q03, the way of calculating the Leverage Ratio changed, and in order for all the figures to be comparable, all previous quarters were recalculated.
As a result of the proceeds from the capital increase and cash generated by Descs businesses, Desc made debt prepayments totaling US$279 million. The prepayments reduced net debt by approximately 25.7%, leaving a balance of US$733 million. Notably, in the last 18 months, the total debt has decreased by US$409 million.
These prepayments were applied in the following manner: US$162 million towards long-term bank credit agreements, US$40 million towards revolving bank credit agreements (both were part of the credit agreements restructured last December), US$74 million towards Descs 8.75% coupon bond due October 2007, and US$3 million towards other credit agreements.
The following is a breakdown of Descs total debt:
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Second Quarter 2004 Results
As of June 30, 2004, the total debt mix was 67% dollar-denominated, 9% peso-denominated and 24% in UDIS and the debt maturity profile was 95% long-term and 5% short-term. The average cost of debt as of that date was 5.17% for the dollar-denominated debt and 8.86% for the peso-denominated debt.
Financing expenses were US$15.3 million in 2Q04, which represents a decline of 16.8% when compared to 1Q04. In addition, due to debt prepayments, the new interest rate for Descs credit agreements restructured last December, applicable as of 2Q04, are as follows: LIBOR + 250 basis points for the dollar debt facility, TIIE + 250 basis points for the peso debt facility, and LIBOR + 250 basis points for the revolving credit facility.
Sales and Exports
During 2Q04, dollar-denominated sales increased 11.7% compared to 2Q03, from US$446 million to US$498 million. Similarly, there was an increase of 10.1% in dollar-denominated sales during the first half of 2004 when compared to the first half of 2003.
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Second Quarter 2004 Results
Total exports totaled US$241 million in 2Q04, which represents an increase of 15.3% when compared to 2Q03. The main drivers were the increases in export sales in the Automotive, Chemical and Food sectors, which were 4.0%, 33.4% and 18.6%, respectively, higher than in 2Q03. For the first half of 2004 compared to 2003, the increase was 12.2%.
Operating Income
Consolidated operating income in dollars posted a notable increase in 2Q04 totaling US$21 million, which is US$19 million higher than in 2Q03 and US$23 million higher than in the first half of 2003.
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Second Quarter 2004 Results
Results by Sector
Automotive Sector
Table 3 shows the figures obtained for the Automotive Sector.
Table 3. Automotive Sector Results
(Figures in millions of constant pesos (Ps.) and U.S. dollars (US$))
Automotive Sector
2Q04 |
Adjusted 2Q032 |
2Q04 vs. Adjusted 2Q032 |
Actual 2Q03 |
2Q04 vs. Actual 2Q03 |
1Q04 |
2Q04 vs. 1Q04 |
||||||||||||||
Sales (Ps.) |
2,067 | 1,889 | 9.4 | % | 1,924 | 7.4 | % | 2,177 | -5.1 | % | ||||||||||
Sales (US $) |
181 | 173 | 4.7 | % | 176 | 2.8 | % | 197 | -7.9 | % | ||||||||||
Exports (US $) |
122 | 117 | 4.0 | % | 120 | 1.6 | % | 133 | -8.4 | % | ||||||||||
Operating Income (Ps.) |
34 | 55 | -37.3 | % | 44 | -21.5 | % | 141 | -75.7 | % | ||||||||||
Operating Income (US $) |
3 | 5 | -39.8 | % | 4 | -24.8 | % | 13 | -76.7 | % | ||||||||||
Operating Margin |
1.7 | % | 2.9 | % | 0 | 6.5 | % | |||||||||||||
EBITDA (Ps.) 1 |
216 | 237 | -8.9 | % | 234 | -7.6 | % | 319 | -32.3 | % | ||||||||||
EBITDA (US $) 1 |
19 | 22 | -12.8 | % | 21 | -11.5 | % | 29 | -34.5 | % |
1 | EBITDA, as used in this press release, is Operating Income (Loss) plus the sum of Depreciation and Amortization, all of which are presented under generally accepted principles in Mexico. EBITDA is presented herein because Desc believes it provides useful information regarding Descs ability to service its debt. EBITDA should not be considered in isolation or as a substitute for Descs consolidated income statements or other financial statements prepared in accordance with Mexican GAAP or as a measure of profitability or liquidity. Please refer to the section entitled Non-GAAP Financial Reconciliation Tables for a reconciliation of EBITDA to Operating Income. |
2 | The Adjusted 2Q03 totals exclude the financial figures for Descs aluminum wheel business, which was sold. Management believes that investors can better evaluate and analyze Descs historical and future business trends if they consider results of operations without this divested business. |
During the second quarter of 2004 sales reached US$181 million, an increase of 4.7% compared to 2Q03. This is attributed to a higher sales volume (i) from the Tractor Project related to the cardan shaft, forge and axle businesses and (ii) in the gear business for Dana related to the BMW X5 platform.
Revenues for this period decreased 7.9% compared to 1Q04 due primarily to the unplanned strike at a Volkswagen plant, which impacted Descs constant velocity joint business, and a contraction in the aftermarket.
Operating income in dollars decreased by 39.8% in 2Q04 compared to 2Q03, which is attributed to sharp increases in the prices of raw materials (steel and scrap, including transportation costs payable by Desc) that affected Descs transmission, wheel, forging and foundry businesses.
The negative effect of steel prices has been partially offset by a reduction in expenses resulting from Descs administrative and operating restructuring implemented at the end of 2003. In addition, negotiations with customers continue in an effort to pass on these cost increases to customers.
Export sales were US$122 million, which represents a 4.0% increase compared to the same period last year. This was due to increased sales stemming from the Tractor Project and increased gear sales.
Average capacity utilization during 2Q04 was 59%. However, there were plants operating at 80% capacity or in some cases, above capacity, such as Descs axle, gear, cardan shaft and foundry businesses.
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Second Quarter 2004 Results
Chemical Sector
Table 4 shows the figures for the Chemical Sector.
Table 4. Chemical Sector Results
(Figures in millions of constant pesos (Ps.) and U.S. dollars (US$))
Chemical Sector
2Q04 |
Adjusted 2Q032 |
2Q04 vs. Adjusted 2Q032 |
Actual 2Q03 |
2Q04 vs. Actual 2Q03 |
1Q04 |
2Q04 vs. 1Q04 |
||||||||||||||
Sales (Ps.) |
2,196 | 1,681 | 30.7 | % | 1,956 | 12.3 | % | 1,867 | 17.6 | % | ||||||||||
Sales (US $) |
193 | 154 | 25.5 | % | 179 | 7.4 | % | 169 | 13.8 | % | ||||||||||
Exports (US $) |
88 | 66 | 33.7 | % | 66 | 33.7 | % | 71 | 23.9 | % | ||||||||||
Operating Income (Ps.) |
73 | 7 | 885.1 | % | 56 | 31.6 | % | 32 | 128.1 | % | ||||||||||
Operating Income (US $) |
6 | 1 | 475.2 | % | 5 | 25.4 | % | 3 | 119.4 | % | ||||||||||
Operating Margin |
3.3 | % | 0.4 | % | 1.7 | % | ||||||||||||||
EBITDA (Ps.) 1 |
157 | 86 | 81.7 | % | 143 | 9.6 | % | 112 | 40.2 | % | ||||||||||
EBITDA (US $) 1 |
14 | 8 | 79.4 | % | 13 | 4.7 | % | 10 | 35.2 | % |
1 | EBITDA, as used in this press release, is Operating Income (Loss) plus the sum of Depreciation and Amortization, all of which are presented under generally accepted principles in Mexico. EBITDA is presented herein because Desc believes it provides useful information regarding Descs ability to service its debt. EBITDA should not be considered in isolation or as a substitute for Descs consolidated income statements or other financial statements prepared in accordance with Mexican GAAP or as a measure of profitability or liquidity. Please refer to the section entitled Non-GAAP Financial Reconciliation Tables for a reconciliation of EBITDA to Operating Income. |
2 | The Adjusted 2Q03 totals exclude the financial figures for Descs adhesive and sealant businesses, which was sold in 2003. Management believes that investors can better evaluate and analyze Descs historical and future business trends if they consider results of operations without this divested business. |
Sales reached US$193 million in 2Q04, representing an increase of 25.5% compared to 2Q03 and 13.8% with respect to 1Q04, due mainly to higher sales volumes in all of Descs chemicals businesses, as well as increased prices.
The principal raw material costs continue to increase due to rising oil and butadiene monomer prices (as result of a scarcity of butadiene monomer in the international market, because the main suppliers of this raw material continue with allocation plans due to the imbalance that exists between supply and demand. This plan has been aggravated by the temporary exit of one of Repsols production units, a situation that has further increased prices.
The higher operating margins are fundamentally due to the rise in sales volume, an improved performance of the plants through greater installed capacity utilization, as is the case with phosphates, laminates and particle boards, as well as stricter controls in operating expenses.
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Second Quarter 2004 Results
Food Sector
Table 5 shows the figures obtained in the Food Sector.
Table 5. Food Sector Figures
(Figures in millions of constant pesos (Ps.) and U.S. dollars (US$))
Food Sector
2Q04 |
2Q03 |
2Q04 vs. 2Q03 |
1Q04 |
2Q04 vs. 1Q04 |
|||||||||||
Sales (Ps.) |
1,084 | 932 | 16.3 | % | 1,017 | 6.5 | % | ||||||||
Sales (US $) |
95 | 85 | 11.4 | % | 92 | 3.0 | % | ||||||||
Exports (US $) |
31 | 26 | 18.6 | % | 27 | 12.7 | % | ||||||||
Operating Income (Ps.) |
87 | 26 | 236.2 | % | 58 | 51.6 | % | ||||||||
Operating Income (US $) |
8 | 2 | 219.8 | % | 5 | 48.1 | % | ||||||||
Operating Margin |
8.1 | % | 2.8 | % | 5.7 | % | |||||||||
EBITDA (Ps.) 1 |
127 | 68 | 88.5 | % | 95 | 33.5 | % | ||||||||
EBITDA (US $) 1 |
11 | 6 | 80.0 | % | 9 | 30.2 | % |
1 | EBITDA, as used in this press release, is Operating Income (Loss) plus the sum of Depreciation and Amortization, all of which are presented under generally accepted principles in Mexico. EBITDA is presented herein because Desc believes it provides useful information regarding Descs ability to service its debt. EBITDA should not be considered in isolation or as a substitute for Descs consolidated income statements or other financial statements prepared in accordance with Mexican GAAP or as a measure of profitability or liquidity. Please refer to the section entitled Non-GAAP Financial Reconciliation Tables for a reconciliation of EBITDA to Operating Income. |
Branded Products
During 2Q04, sales increased 4.7% in comparison to 2Q03, which is principally due to higher sales in most of Descs food product lines, including: Del Fuerte brand tomato paste, a 16% increase in sales in comparison to 2Q03 and a market share of 65.9%; Embasa brand ketchup with a market share of 23%; and Zuko and Livean brand powdered beverage mix continue growing successfully with increases in volume of 80% and 97%, respectively, in comparison to 2Q03.
In the domestic market, sales volume increased by 10% in comparison to the previous year. The products with the greatest growth are: tomato paste 17%, ketchup 18%, jellies 9%, tuna 19%, powered beverage mix 79%, gelatin 10% and coffee 7%.
In our U.S. business (Authentic Specialty Foods), sales to supermarkets increased 4.3% in comparison to 2Q03; sales to restaurants increased by 14.6% in comparison to 2Q03; and sales to fast food restaurants grew by 9.4% in comparison to 2Q03.
Desc has increased the prices for some of its food products, which has been offset in part by an increase in raw material costs. Tuna prices have increased 21% year-to-date to counteract the increases in fish, packaging and soybean oil.
In comparison to 2Q03, operating income in 2Q04 increased by 137.1% due to improved sales, improved costs from plant efficiency and the use of fresh tomatoes, in addition to positive changes in operations and the strict control of expenses that compensated for the increases in raw material and packaging costs.
At the Santa Rosa Plant, Desc invested in a project to develop healthy vegetable products in a new and modern container. The new plant for processing and packing foods was equipped in a record time for Desc of 5 months by Corfuerte and Tetra Pak, which is a leader in the food processing and packing field. In the first phase, a new line of vegetables was introduced to the market: potato cubes, chayote, zucchini and carrots, which complement an existing line of vegetable salads, baby corn, peas and carrots, and baby peas.
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Second Quarter 2004 Results
The launching of the new line of Del Fuerte vegetables in innovative packaging, Tetra Recart by Tetra Pak, marks the beginning of a new era for Desc of a healthy foods category. Its weight and shape brings several advantages to retailers during its distribution and display. For the consumer, it provides safety, ease in opening, and convenience in its handling and use. For Corfuerte, this is an extremely important step towards becoming a modern, leading company in its field.
Pork Business
Pork prices continued the upward trend through 2Q04, increasing 23.2% compared to 2Q03, which offset the increases in grain and soy paste costs. This resulted in an improved operating margin which rose from 2.7% in 2Q03 to 10.5% in 2Q04. Another positive effect was the improved sales in the export market due to higher export sales to Japan.
Sales volume for the quarter decreased by 14.9% in comparison to the same period last year due to the closing of the Bajío operations in May.
The capacity utilization rate remains 100% in the southeast region given the strong demand levels.
The following table provides the operating margins of Descs branded products and pork businesses:
Table 6. Food Sector Relevant Figures
2Q04 |
2Q03 |
2Q04 vs. 2Q03 |
|||||||
Branded Products |
|||||||||
Sales (millions of US$) |
57 | 55 | 4.7 | % | |||||
Operating Margin |
6.5 | % | 2.9 | % | |||||
Pork Business |
|||||||||
Sales (millions of US$) |
38 | 31 | 23.2 | % | |||||
Operating Margin |
10.5 | % | 2.7 | % |
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Second Quarter 2004 Results
Real Estate Sector
Table 7 shows figures for the Real Estate Sector.
Table 7. Real Estate Sector Figures
(Figures in millions of constant pesos (Ps.) and U.S. dollars (US$))
Real Estate Sector
2Q04 |
Adjusted 2Q032 |
2Q04 vs. Adjusted 2Q032 |
Actual 2Q03 |
2Q04 vs. Actual 2Q03 |
1Q04 |
2Q04 vs. 1Q04 |
||||||||||||||
Sales (Ps.) |
332 | 347 | -4.2 | % | 1,173 | -71.7 | % | 292 | 13.7 | % | ||||||||||
Sales (US $) |
29 | 32 | -9.9 | % | 107 | -72.9 | % | 27 | 9.4 | % | ||||||||||
Operating Income (Ps.) |
69 | -42 | NA | 458 | -85.0 | % | 41 | 66.2 | % | |||||||||||
Operating Income (US $) |
6 | -4 | NA | 33 | -85.7 | % | 4 | 55.3 | % | |||||||||||
Operating Margin |
20.7 | % | -12.1 | % | 14.2 | % | ||||||||||||||
EBITDA (Ps.) 1 |
74 | -35 | NA | 464 | -84.0 | % | 47 | 58.5 | % | |||||||||||
EBITDA (US $) 1 |
6 | -3 | NA | 33 | -84.8 | % | 4 | 48.8 | % |
1 | EBITDA, as used in this press release, is Operating Income (Loss) plus the sum of Depreciation and Amortization, all of which are presented under generally accepted principles in Mexico. EBITDA is presented herein because Desc believes it provides useful information regarding Descs ability to service its debt. EBITDA should not be considered in isolation or as a substitute for Descs consolidated income statements or other financial statements prepared in accordance with Mexican GAAP or as a measure of profitability or liquidity. Please refer to the section entitled Non-GAAP Financial Reconciliation Tables for a reconciliation of EBITDA to Operating Income. |
2 | The Adjusted 2Q03 totals exclude the financial figures for the Chiluca real estate project, which was sold in 2003. Management believes that investors can better evaluate and analyze Descs historical and future business trends if they consider results of operations without this divested real estate project. |
Sales in 2Q04 reached US$29 million, equivalent to a 9.4% increase compared to the previous quarter. 2Q04 revenue decreased 9.9% in comparison to 2Q03.
Sales for 2Q04 were attributable to the following projects:
| Punta Mita 74.8% |
| Santa Fe Shopping Center Reserve 20.4% |
| Bosques de Santa Fe 4.8% |
Operating income totaled US$6 million in 2Q04, compared to the loss recorded in 2Q03.
The Punta Mita project continues enjoying excellent acceptance in the market. During the second quarter, Desc sold a beachfront lot, three golf course lots and six villas. In addition, negotiations were completed for the sale of land in front of the golf course for the development of 125 villas, which will be developed over the next five years.
The three remaining lots in the Santa Fe Shopping Center Reserve were sold, leaving no remaining lots for sale.
In Bosques de Santa Fe, practically no single-family lots remain in inventory, while 18 residential lots and approximately 200 multi-family units remain for sale.
Contacts: | Marisol Vázquez-Mellado Mollón/Jorge Padilla Ezeta | |
Tel.: (5255) 5261 8000 | ||
investor.relation@desc.com.mx |
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Second Quarter 2004 Results
àà Financial Tables Follow àà
FINANCIAL INDICATORS
2Q04 |
1Q04 |
4Q03 |
3Q03 |
2Q03 |
1Q03 |
|||||||||||||
Interest Coverage |
2.7x | 2.9x | 2.9x | 2.7x | 2.45x | 2.6x | ||||||||||||
Short-Term Debt |
5 | % | 3 | % | 3 | % | 29 | % | 27 | % | 23 | % | ||||||
Long-Term Debt |
95 | % | 97 | % | 97 | % | 71 | % | 73 | % | 77 | % | ||||||
Peso & Udi-denominated debt |
33 | % | 31 | % | 30 | % | 30 | % | 32 | % | 31 | % | ||||||
Dollar-denominated debt |
67 | % | 69 | % | 70 | % | 70 | % | 68 | % | 69 | % |
TOTAL OUTSTANDING SHARES
A Shares |
1,166,108,597 | 51.10 | % | ||
B Shares |
1,115,690,363 | 48.90 | % | ||
Total |
2,281,798,960 | 100.00 | % |
Non-GAAP Financial Reconciliation Tables1
Desc, S.A. de C.V. And Subsidiaries
Figures in millions of constant pesos (Ps.) and U.S. Dollars (US$)
2Q04 |
Adjusted 2Q031 |
2Q04 vs Adjusted 2Q031 |
Actual 2Q03 |
2Q04 vs Actual 2Q03 |
1Q04 |
2Q04 vs. 4Q03 |
|||||||||||
Operating Income (Ps.) |
243 | 23 | 960.2 | % | 461 | -47.3 | % | 248 | -1.8 | % | |||||||
Operating Income (US $) |
21 | 2 | 858.0 | % | 42 | -49.6 | % | 23 | -5.2 | % | |||||||
Depreciation and Amortization (Ps.) |
329 | 328 | 0.3 | % | 344 | 0.3 | % | 316 | 4.1 | % | |||||||
Depreciation and Amortization (US $) |
29 | 30 | -0.3 | % | 32 | -3.3 | % | 28 | 3.6 | % | |||||||
EBITDA (Ps.) |
572 | 351 | 62.8 | % | 805 | -29.0 | % | 564 | 1.3 | % | |||||||
EBITDA (US $) |
50 | 32 | 55.1 | % | 74 | -32.0 | % | 51 | -1.7 | % |
1 | The Adjusted 2Q03 totals exclude the financial figures for Descs aluminum wheel and adhesive and sealant businesses and the Chiluca real estate project, which were sold. Management believes that investors can better evaluate and analyze Descs historical and future business trends if they consider results of operations without these divested businesses and real estate project. |
1 | 2003 Figures do not include operations from the Aluminum Wheel, Adhesive and Sealant businesses, as well as real estate projects sold. |
11
www.desc.com.mx
Second Quarter 2004 Results
Automotive Sector
Figures in millions of constant pesos (Ps.) and U.S. Dollars (US$)
2Q04 |
Adjusted 2Q031 |
2Q04 vs Adjusted 2Q031 |
Actual 2Q03 |
2Q04 vs Actual 2Q03 |
1Q04 |
2Q04 vs. 1Q04 |
|||||||||||
Operating Income (Ps.) |
34 | 55 | -37.3 | % | 44 | -21.5 | % | 141 | -75.7 | % | |||||||
Operating Income (US $) |
3 | 5 | -39.8 | % | 4 | -24.8 | % | 13 | -76.7 | % | |||||||
Depreciation and Amortization (Ps.) |
182 | 182 | 0.0 | % | 190 | 0.0 | % | 178 | 2.2 | % | |||||||
Depreciation and Amortization (US $) |
16 | 17 | -5.9 | % | 17 | -5.9 | % | 16 | 0.0 | % | |||||||
EBITDA (Ps.) |
216 | 237 | -8.9 | % | 234 | -7.6 | % | 319 | -32.3 | % | |||||||
EBITDA (US $) |
19 | 22 | -12.8 | % | 21 | -11.5 | % | 29 | -34.5 | % |
1 | The Adjusted 2Q03 totals exclude the financial figures for Descs aluminum wheel business, which was sold. Management believes that investors can better evaluate and analyze Descs historical and future business trends if they consider results of operations without this divested business. |
Chemical Sector
Figures in millions of constant pesos (Ps.) and U.S. Dollars (US$)
2Q04 |
Adjusted 2Q031 |
2Q04 vs Adjusted 2Q031 |
Actual 2Q03 |
2Q04 vs Actual 2Q03 |
1Q04 |
2Q04 vs. 1Q04 |
|||||||||||
Operating Income (Ps.) |
73 | 7 | 885.1 | % | 56 | 31.6 | % | 32 | 128.1 | % | |||||||
Operating Income (US $) |
6 | 1 | 475.2 | % | 5 | 25.4 | % | 3 | 119.4 | % | |||||||
Depreciation and Amortization (Ps.) |
84 | 79 | 6.3 | % | 87 | 6.3 | % | 80 | 5.0 | % | |||||||
Depreciation and Amortization (US $) |
8 | 7 | 14.3 | % | 8 | 14.3 | % | 7 | 14.3 | % | |||||||
EBITDA (Ps.) |
157 | 86 | 81.7 | % | 143 | 9.6 | % | 112 | 40.2 | % | |||||||
EBITDA (US $) |
14 | 8 | 79.4 | % | 13 | 4.7 | % | 10 | 35.2 | % |
1 | The Adjusted 2Q03 totals exclude the financial figures for Descs adhesive and sealant businesses, which was sold in 2003. Management believes that investors can better evaluate and analyze Descs historical and future business trends if they consider results of operations without this divested business. |
Food Sector
Figures in millions of constant pesos (Ps.) and U.S. Dollars (US$)
2Q04 |
2Q03 |
2Q04 vs 2Q03 |
1Q04 |
2Q04 vs. 1Q04 |
||||||||
Operating Income (Ps.) |
87 | 26 | 236.2 | % | 58 | 51.6 | % | |||||
Operating Income (US $) |
8 | 2 | 219.8 | % | 5 | 48.1 | % | |||||
Depreciation and Amortization (Ps.) |
40 | 42 | -4.8 | % | 37 | 8.1 | % | |||||
Depreciation and Amortization (US $) |
3 | 4 | -25.0 | % | 4 | -25.0 | % | |||||
EBITDA (Ps.) |
127 | 68 | 88.5 | % | 95 | 33.5 | % | |||||
EBITDA (US $) |
11 | 6 | 80.0 | % | 9 | 30.2 | % |
12
www.desc.com.mx
Second Quarter 2004 Results
Real Estate Sector
Figures in millions of constant pesos (Ps.) and U.S. Dollars (US$)
2Q04 |
Adjusted 2Q031 |
2Q04 vs Adjusted 2Q031 |
Actual 2Q03 |
2Q04 vs Actual 2Q03 |
1Q04 |
2Q04 vs. 1Q04 |
|||||||||||
Operating Income (Ps.) |
69 | -42 | NA | 458 | -85.0 | % | 41 | 66.2 | % | ||||||||
Operating Income (US $) |
6 | -4 | NA | 33 | -85.7 | % | 4 | 55.3 | % | ||||||||
Depreciation and Amortization (Ps.) |
5 | 7 | -28.6 | % | 6 | -28.6 | % | 6 | -16.6 | % | |||||||
Depreciation and Amortization (US $) |
0 | 1 | -28.5 | % | 0 | -100.0 | % | 0 | 0.0 | % | |||||||
EBITDA (Ps.) |
74 | -35 | NA | 464 | -84.0 | % | 47 | 58.5 | % | ||||||||
EBITDA (US $) |
6 | -3 | NA | 33 | -84.8 | % | 4 | 48.8 | % |
1 | The Adjusted 2Q03 totals exclude the financial figures for the Chiluca real estate project, which was sold in 2003. Management believes that investors can better evaluate and analyze Descs historical and future business trends if they consider results of operations without this divested real estate project. |
13
www.desc.com.mx
Second Quarter 2004 Results
Desc, S.A. de C.V. and Subsidiaries
Consolidated Balance Sheets
(In millions of constant pesos, as of June 30, 2004).
2004 |
2003 |
% |
|||||
Assets |
|||||||
Current Assets: |
|||||||
Cash and Short Term Investments |
410 | 889 | -53.8 | % | |||
Account Receivable (net) |
5,454 | 4,842 | 12.6 | % | |||
Inventories and Other Assets |
3,231 | 3,165 | 2.1 | % | |||
Total Current Assets |
9,095 | 8,896 | 2.2 | % | |||
Long-term Accounts Receivable |
1,201 | 1,115 | 7.7 | % | |||
Land held for development and real estate projects |
3,619 | 3,755 | -3.6 | % | |||
Fixed Assets |
11,384 | 13,567 | -16.1 | % | |||
Deferred Assets (net) |
630 | 1,586 | -60.3 | % | |||
Other Assets |
1,222 | 1,135 | 7.7 | % | |||
Total Assets |
27,151 | 30,054 | -9.7 | % | |||
Liabilities |
|||||||
Current Liabilities: |
|||||||
Banks Loans |
433 | 3,087 | -86.0 | % | |||
Suppliers |
2,130 | 2,210 | -3.6 | % | |||
Taxes to be paid |
261 | 683 | -61.9 | % | |||
Other Liabilities |
1,664 | 1,605 | 3.7 | % | |||
Total Current Liabilities |
4,488 | 7,585 | -40.8 | % | |||
Long-Term Debt |
8,428 | 8,541 | -1.3 | % | |||
Deferred Taxes |
817 | 1,458 | -44.0 | % | |||
Other |
812 | 593 | 37.0 | % | |||
Total Liabilities |
14,545 | 18,177 | -20.0 | % | |||
Stockholders Equity |
|||||||
Capital Stock |
30 | 18 | 66.7 | % | |||
Paid-in Surplus |
3,810 | 1,170 | 225.5 | % | |||
Restatement of Paid-In Capital Stock |
11,913 | 11,242 | 6.0 | % | |||
Cumulative effect of restatement, net |
-6,774 | -4,455 | 52.0 | % | |||
Total Majority Interest |
8,979 | 7,975 | 12.6 | % | |||
Minority Interest |
3,627 | 3,902 | -7.1 | % | |||
Total Stockholders Equity |
12,606 | 11,877 | 6.1 | % | |||
Total Liabilities and Stockholders Equity |
27,151 | 30,054 |
14
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Second Quarter 2004 Results
Desc, S.A. de C.V. and Subsidiaries
Consolidated Income Statements
(In millions of constant pesos, as of June 30, 2004)
The financial figures below have not been adjusted to exclude
the operations and businesses divested in 2003.
2Q04 |
2Q03 |
Var. |
|||||||
Net Sales |
5,680 | 5,999 | -5.3 | % | |||||
Cost of Sales |
4,607 | 4,587 | 0.4 | % | |||||
Gross Profit |
1,073 | 1,412 | -24.0 | % | |||||
Operating Expenses |
|||||||||
Administrative and Selling Expenses |
830 | 951 | -12.7 | % | |||||
Operating Income |
243 | 461 | -47.3 | % | |||||
Interest Expense |
174 | 189 | -7.9 | % | |||||
Interest Income |
(9 | ) | (5 | ) | 80.0 | % | |||
Exchange Gain (loss), net |
120 | (175 | ) | NA | |||||
Gain on Monetary Position |
4 | (43 | ) | NA | |||||
Others |
63 | 85 | -25.9 | % | |||||
Comprehensive Financial Result |
352 | 51 | 590.2 | % | |||||
Other Expenses |
(33 | ) | (24 | ) | 37.5 | % | |||
Income before Provisions |
(76 | ) | 434 | NA | |||||
Provisions for: |
|||||||||
Income and Asset Tax |
45 | 95 | -52.6 | % | |||||
Employee Profit Sharing |
16 | 16 | 0.0 | % | |||||
Deferred Income Taxes |
(29 | ) | 117 | NA | |||||
Total Taxes |
32 | 228 | -86.0 | % | |||||
Net Consolidated Income |
(108 | ) | 206 | NA | |||||
32 | 75 | -57.3 | % | ||||||
Minority Interest |
| | |||||||
Majority Net Income |
(140 | ) | 131 | NA | |||||
12 months Net Income per Share |
(1.57 | ) | (0.74 | ) | |||||
Number of shares outstanding: |
2,282 | 1,369 | |||||||
(Thousands of shares) |
|||||||||
Operating Income+Depreciation |
572 | 805 | -29.0 | % |
15
www.desc.com.mx
Second Quarter 2004 Results
This press release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that reflect the current views of Descs management with respect to future events. The words anticipate, believe, estimate, expect, intend, may, plan, project, and should and similar expressions generally are intended to identify forward-looking statements. These statements are subject to risks, uncertainties and changes in circumstances. Actual results may differ materially from present expectations as a result of many factors, including, but not limited to, changes in global and domestic political, economic, business, competitive, market and regulatory factors, the cyclicality of the autoparts and chemicals industries and other factors which are described under the heading Risk Factors in Descs most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. Desc does not assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.
16
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Item 2
CONSOLIDATED BALANCE SHEET
AT JUNE 31 OF 2004 AND 2003
(Thousands of Pesos)
REF S |
CONCEPTS |
SECOND QUARTER OF PRESENT YEAR |
SECOND QUARTER OF LAST YEAR |
|||||||||
Amount |
% |
Amount |
% |
|||||||||
1 | TOTAL ASSETS |
27,151,029 | 100 | % | 30,053,694 | 100 | % | |||||
2 | CURRENT ASSETS |
9,095,899 | 34 | % | 8,896,265 | 30 | % | |||||
3 | CASH AND SHORT-TERM INVESTMENTS |
410,327 | 2 | % | 889,109 | 3 | % | |||||
4 | ACCOUNTS AND DOCUMENTS RECEIVABLE (NET) |
4,315,397 | 16 | % | 3,210,043 | 11 | % | |||||
5 | OTHER ACCOUNTS AND DOCUMENTS RECEIVABLE |
1,138,904 | 4 | % | 1,631,972 | 5 | % | |||||
6 | INVENTORIES |
3,231,271 | 12 | % | 3,165,141 | 12 | % | |||||
7 | OTHER CURRENT ASSETS |
0 | 0 | % | 0 | 0 | % | |||||
8 | LONG-TERM |
5,014,730 | 18 | % | 4,933,724 | 18 | % | |||||
9 | ACCOUNTS AND DOCUMENTS RECEIVABLE (NET) |
1,201,117 | 4 | % | 1,114,568 | 4 | % | |||||
10 | INVESTMENT IN SHARES OF SUBSIDIARIES AND NON-CONSOLIDATED ASSOCIATED |
194,767 | 1 | % | 64,531 | 0 | % | |||||
11 | OTHER INVESTMENTS |
3,618,846 | 13 | % | 3,754,625 | 14 | % | |||||
12 | PROPERTY, PLANT AND EQUIPMENT |
11,383,968 | 42 | % | 13,567,342 | 45 | % | |||||
13 | PROPERTY |
6,213,991 | 23 | % | 7,165,834 | 26 | % | |||||
14 | MACHINERY AND INDUSTRIAL EQUIPMENT (NET) |
15,931,791 | 59 | % | 17,025,203 | 57 | % | |||||
15 | OTHER EQUIPMENT |
3,205,217 | 12 | % | 2,038,840 | 8 | % | |||||
16 | ACCUMULATED DEPRECIATION |
-14,352,452 | -53 | % | -13,673,523 | -45 | % | |||||
17 | CONSTRUCTION IN PROGRESS |
385,421 | 1 | % | 1,010,988 | 4 | % | |||||
18 | DEFERRED ASSETS (NET) |
629,524 | 2 | % | 1,585,676 | 5 | % | |||||
19 | OTHER ASSETS |
1,026,908 | 4 | % | 1,070,687 | 4 | % | |||||
20 | TOTAL LIABILITIES |
14,545,163 | 100 | % | 18,176,868 | 100 | % | |||||
21 | CURRENT LIABILITIES |
4,487,785 | 31 | % | 7,585,060 | 42 | % | |||||
22 | SUPPLIERS |
2,129,715 | 15 | % | 2,209,928 | 12 | % | |||||
23 | BANK LOANS |
432,832 | 3 | % | 3,087,291 | 17 | % | |||||
24 | STOCK MARKET LOANS |
0 | 0 | % | 0 | 0 | % | |||||
25 | TAXES TO BE PAID |
260,536 | 2 | % | 683,277 | 4 | % | |||||
26 | OTHER CURRENT LIABILITIES |
1,664,702 | 11 | % | 1,604,564 | 9 | % | |||||
27 | LONG-TERM LIABILITIES |
8,428,230 | 58 | % | 8,540,851 | 47 | % | |||||
28 | BANK LOANS |
6,106,382 | 42 | % | 6,216,861 | 34 | % | |||||
29 | STOCK MARKET LOANS |
2,321,848 | 16 | % | 2,323,990 | 13 | % | |||||
30 | OTHER LOANS |
0 | 0 | % | 0 | 0 | % | |||||
31 | DEFERRED LOANS |
816,768 | 6 | % | 1,457,860 | 8 | % | |||||
32 | OTHER LIABILITIES |
812,380 | 6 | % | 593,097 | 3 | % | |||||
33 | CONSOLIDATED STOCK HOLDERS EQUITY |
12,605,866 | 100 | % | 11,876,826 | 100 | % | |||||
34 | MINORITY INTEREST |
3,627,089 | 29 | % | 3,902,319 | 33 | % | |||||
35 | MAJORITY INTEREST |
8,978,777 | 71 | % | 7,974,507 | 67 | % | |||||
36 | CONTRIBUTED CAPITAL |
15,752,956 | 125 | % | 12,430,641 | 105 | % | |||||
37 | PAID-IN CAPITAL STOCK (NOMINAL) |
29,663 | 0 | % | 17,798 | 0 | % | |||||
38 | RESTATEMENT OF PAID-IN CAPITAL STOCK |
11,913,228 | 95 | % | 11,242,453 | 95 | % | |||||
39 | PREMIUM ON SALES OF SHARES |
3,810,065 | 30 | % | 1,170,390 | 10 | % | |||||
40 | CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES |
|||||||||||
41 | CAPITAL INCREASE (DECREASE) |
-6,774,179 | -54 | % | -4,456,134 | -38 | % | |||||
42 | RETAINED EARNINGS AND CAPITAL RESERVE |
17,525,927 | 139 | % | 18,348,606 | 154 | % | |||||
43 | REPURCHASE FUND OF SHARES |
907,079 | 7 | % | 907,079 | 8 | % | |||||
44 | EXCESS (SHORTFALL) IN RESTATEMENT OF HOLDERS EQUITY |
-24,950,088 | -198 | % | -23,504,957 | -198 | % | |||||
45 | NET INCOME FOR THE YEAR |
-257,097 | -2 | % | -206,862 | -2 | % |
1
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CONSOLIDATED BALANCE SHEET
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
REF S |
CONCEPTS |
SECOND QUARTER OF PRESENT YEAR |
SECOND QUARTER OF LAST YEAR |
|||||||||
Amount |
% |
Amount |
% |
|||||||||
3 |
CASH AND SHORT-TERM INVESTMENTS |
410,327 | 100 | % | 889,109 | 100 | % | |||||
46 |
CASH |
251,337 | 61 | % | 359,870 | 40 | % | |||||
47 |
SHORT-TERM INVESTMENTS |
158,990 | 39 | % | 529,239 | 60 | % | |||||
18 |
DEFERRED ASSETS (NET) |
629,524 | 100 | % | 1,585,676 | 100 | % | |||||
48 |
AMORTIZED OR REDEEMED EXPENSES |
0 | 0 | % | 0 | 0 | % | |||||
49 |
GOODWILL |
629,524 | 100 | % | 1,585,676 | 100 | % | |||||
50 |
DEFERRED TAXES |
0 | 0 | % | 0 | 0 | % | |||||
51 |
OTHERS |
0 | 0 | % | 0 | 0 | % | |||||
21 |
CURRENT LIABILITIES |
4,487,785 | 100 | % | 7,585,060 | 100 | % | |||||
52 |
FOREIGN CURRENCY LIABILITIES |
2,095,229 | 47 | % | 4,445,223 | 59 | % | |||||
53 |
MEXICAN PESOS LIABILITIES |
2,392,556 | 53 | % | 3,139,837 | 41 | % | |||||
24 |
STOCK MARKET LOANS |
0 | 0 | % | 0 | 0 | % | |||||
54 |
COMMERCIAL PAPER |
0 | 0 | % | 0 | 0 | % | |||||
55 |
CURRENT MATURITIES OF MEDIUM TERM NOTES |
0 | 0 | % | 0 | 0 | % | |||||
56 |
CURRENT MATURITIES OF BONDS |
0 | 0 | % | 0 | 0 | % | |||||
26 |
OTHER CURRENT LIABILITIES |
1,664,702 | 100 | % | 1,604,564 | 100 | % | |||||
57 |
OTHER CURRENT LIABILITIES WITH COST |
0 | 0 | % | 0 | 0 | % | |||||
58 |
OTHER CURRENT LIABILITIES WITHOUT COST |
1,664,702 | 100 | % | 1,604,564 | 100 | % | |||||
27 |
LONG-TERM LIABILITIES |
8,428,230 | 100 | % | 8,540,851 | 100 | % | |||||
59 |
FOREIGN CURRENCY LIABILITIES |
5,215,237 | 62 | % | 5,040,093 | 59 | % | |||||
60 |
MEXICAN PESOS LIABILITIES |
3,212,993 | 38 | % | 3,500,758 | 41 | % | |||||
29 |
STOCK MARKET LOANS |
2,321,848 | 100 | % | 2,323,990 | 100 | % | |||||
61 |
BONDS |
0 | % | 0 | % | |||||||
62 |
MEDIUM TERM NOTES |
2,321,848 | 100 | % | 2,323,990 | 100 | % | |||||
30 |
OTHER LOANS |
|||||||||||
63 |
OTHER LOANS WITH COST |
0 | 0 | % | 0 | 0 | % | |||||
64 |
OTHER LOANS WITHOUT COST |
0 | 0 | % | 0 | 0 | % | |||||
31 |
DEFERRED LOANS |
816,768 | 100 | % | 1,457,860 | 100 | % | |||||
65 |
NEGATIVE GOODWILL |
0 | 0 | % | 0 | 0 | % | |||||
66 |
DEFERRED TAXES |
816,768 | 100 | % | 1,457,860 | 100 | % | |||||
67 |
OTHERS |
0 | 0 | % | 0 | 0 | % | |||||
32 |
OTHER LIABILITIES |
812,380 | 100 | % | 593,097 | 100 | % | |||||
68 |
RESERVES |
0 | 0 | % | 0 | 0 | % | |||||
69 |
OTHERS LIABILITIES |
812,380 | 100 | % | 593,097 | 100 | % | |||||
44 |
EXCESS (SHORTFALL) IN RESTATEMENT OF STOCK HOLDERS EQUITY |
-24,950,088 | 100 | % | -23,504,957 | 100 | % | |||||
70 |
ACCUMULATED INCOME DUE TO MONETARY POSITION |
0 | 0 | % | 0 | 0 | % | |||||
71 |
INCOME FROM NON-MONETARY POSITION ASSETS |
-24,950,088 | 100 | % | -23,504,957 | 100 | % |
2
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CONSOLIDATED BALANCE SHEET
OTHER CONCEPTS
(Thousands of Pesos)
REF S |
CONCEPTS |
SECOND QUARTER OF PRESENT YEAR |
SECOND QUARTER OF LAST YEAR | |||
Amount |
Amount | |||||
72 |
WORKING CAPITAL |
4,608,114 | 1,311,205 | |||
73 |
PENSIONS FUND AND SENIORITY PREMIUMS |
405,503 | 579,269 | |||
74 |
EXECUTIVES (*) |
0 | 0 | |||
75 |
EMPLOYERS (*) |
4,257 | 5,794 | |||
76 |
WORKERS (*) |
9,482 | 10,262 | |||
77 |
CIRCULATION SHARES (*) |
2,281,798,960 | 1,369,079,376 | |||
78 |
REPURCHASED SHARES (*) |
0 | 0 |
(*) | THESE AMOUNTS ARE EXPRESSED IN UNITS |
3
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CONSOLIDATED INCOME STATEMENT
FROM JANUARY THE 1ST TO JUNE 30 OF 2004 AND 2003
(Thousands of Pesos)
REF R |
CONCEPTS |
SECOND QUARTER OF PRESENT YEAR |
SECOND QUARTER OF LAST YEAR |
|||||||||
Amount |
% |
Amount |
% |
|||||||||
1 |
NET SALES |
11,039,893 | 100 | % | 11,345,785 | 100 | % | |||||
2 |
COST OF SALES |
8,898,956 | 81 | % | 8,780,722 | 77 | % | |||||
3 |
GROSS INCOME |
2,140,937 | 19 | % | 2,565,063 | 23 | % | |||||
4 |
OPERATING EXPENSES |
1,650,044 | 15 | % | 1,876,196 | 17 | % | |||||
5 |
OPERATING INCOME |
490,893 | 4 | % | 688,867 | 6 | % | |||||
6 |
TOTAL FINANCING COST |
487,853 | 4 | % | 502,916 | 4 | % | |||||
7 |
INCOME AFTER FINANCING COST |
3,040 | 0 | % | 185,951 | 2 | % | |||||
8 |
OTHER FINANCIAL OPERATIONS |
-5,922 | 0 | % | 59,761 | 1 | % | |||||
9 |
INCOME BEFORE TAXES AND WORKERS PROFIT SHARING |
8,962 | 0 | % | 126,190 | 1 | % | |||||
10 |
RESERVE FOR TAXES AND WORKERS PROFIT SHARING |
164,571 | 1 | % | 324,684 | 3 | % | |||||
11 |
NET INCOME AFTER TAXES AND WORKERS PROFIT SHARING |
-155,609 | -1 | % | -198,494 | -2 | % | |||||
12 |
SHARE IN NET INCOME OF SUBSIDIARIES AND NON-CONSOLIDATED ASSOCIATES |
905 | 0 | % | 0 | 0 | % | |||||
13 |
CONSOLIDATED NET INCOME OF CONTINUOUS |
-156,514 | -1 | % | -198,494 | -2 | % | |||||
14 |
INCOME OF DISCONTINUOUS OPERATIONS |
12,333 | 0 | % | -73,317 | -1 | % | |||||
15 |
CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS |
-168,847 | -2 | % | -125,177 | -1 | % | |||||
16 |
EXTRAORDINARY ITEMS NET EXPENSES (INCOME) |
0 | 0 | % | 0 | 0 | % | |||||
17 |
NET EFFECT AT THE BEGINNING OF THE YEAR BY CHANGES IN ACCOUNTING PRINCIPLES |
0 | 0 | % | 0 | 0 | % | |||||
18 |
NET CONSOLIDATED INCOME |
-168,847 | -2 | % | -125,177 | -1 | % | |||||
19 |
NET INCOME OF MINORITY INTEREST |
88,250 | 1 | % | 81,685 | 1 | % | |||||
20 |
NET INCOME OF MAJORITY INTEREST |
-257,097 | -2 | % | -206,862 | -2 | % |
4
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CONSOLIDATED INCOME STATEMENT
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
REF R |
CONCEPTS |
SECOND QUARTER OF PRESENT YEAR |
SECOND QUARTER OF LAST YEAR |
|||||||||
Amount |
% |
Amount |
% |
|||||||||
1 |
NET SALES |
11,039,893 | 100 | % | 11,345,784 | 100 | % | |||||
21 |
DOMESTIC |
5,733,754 | 52 | % | 6,584,851 | 58 | % | |||||
22 |
FOREIGN |
5,306,139 | 48 | % | 4,760,933 | 42 | % | |||||
23 |
TRANSLATED INTO DOLLARS (***) |
473,262 | 4 | % | 427,862 | 4 | % | |||||
6 |
TOTAL FINANCING COST |
487,853 | 100 | % | 502,916 | 100 | % | |||||
24 |
INTEREST PAID |
476,147 | 98 | % | 526,319 | 105 | % | |||||
25 |
EXCHANGE LOSSES |
117,317 | 24 | % | 77,536 | 15 | % | |||||
26 |
INTEREST EARNED |
11,434 | 2 | % | -17,052 | -3 | % | |||||
27 |
EXCHANGE PROFITS |
0 | 0 | % | 0 | 0 | % | |||||
28 |
GAIN DUE TO MONETARY POSITION |
-134,138 | -27 | % | -121,567 | -24 | % | |||||
42 |
LOSS IN UDIs ACTUALIZATION |
39,961 | 8 | % | 37,680 | 7 | % | |||||
43 |
PROFIT IN UDIs ACTUALIZATION |
0 | 0 | % | 0 | 0 | % | |||||
8 |
OTHER FINANCIAL OPERATIONS |
-5,922 | 100 | % | 59,761 | 100 | % | |||||
29 |
OTHER NET EXPENSES (INCOME) NET |
-5,922 | 100 | % | 59,761 | 100 | % | |||||
30 |
(PROFIT) LOSS ON SALE OF OWN SHARES |
0 | 0 | % | 0 | 0 | % | |||||
31 |
(PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS |
0 | 0 | % | 0 | 0 | % | |||||
10 |
RESERVE FOR TAXES AND WORKERS PROFIT SHARING |
164,571 | 100 | % | 324,684 | 100 | % | |||||
32 |
INCOME TAX |
114,227 | 69 | % | 186,987 | 58 | % | |||||
33 |
DEFERRED INCOME TAX |
6,748 | 4 | % | 97,904 | 30 | % | |||||
34 |
WORKERS PROFIT SHARING |
43,596 | 26 | % | 39,793 | 12 | % | |||||
35 |
DEFERRED WORKERS PROFIT SHARING |
0 | 0 | % | 0 | 0 | % |
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CONSOLIDATED INCOME STATEMENT
OTHER CONCEPTS
(Thousands of Pesos)
REF R |
CONCEPTS |
SECOND QUARTER OF PRESENT YEAR |
SECOND QUARTER OF LAST YEAR | |||
Amount |
Amount | |||||
36 |
TOTAL SALES |
11,472,901 | 11,925,242 | |||
37 |
NET INCOME OF THE YEAR |
0 | 0 | |||
38 |
NET SALES (**) |
21,803,153 | 21,235,403 | |||
39 |
OPERATION INCOME (**) |
658,198 | 900,252 | |||
40 |
NET INCOME OF MAJORITY INTEREST (**) |
-2,486,697 | -1,168,694 | |||
41 |
NET CONSOLIDATED INCOME (**) |
-2,286,450 | -1,286,431 | |||
(**) | BASED ON INFORMATION FOR THE LAST TWELVE MONTHS |
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CONSOLIDATED INCOME STATEMENT
FROM APRIL THE 2ND TO JUNE THE 30th OF 2004 AND 2003
(Thousands of Pesos)
REF R |
CONCEPTS |
SECOND QUARTER PRESENT YEAR |
SECOND QUARTER OF LAST YEAR |
||||||||||
Amount |
% |
Amount |
% |
||||||||||
1 |
NET SALES |
5,680,059 | 100 | % | 5,999,042 | 100 | % | ||||||
2 |
COST OF SALES |
4,607,230 | 81 | % | 4,586,583 | 76 | % | ||||||
3 |
GROSS INCOME |
1,072,829 | 19 | % | 1,412,459 | 24 | % | ||||||
4 |
OPERATING EXPENSES |
829,556 | 15 | % | 951,054 | 16 | % | ||||||
5 |
OPERATING INCOME |
243,273 | 4 | % | 461,405 | 8 | % | ||||||
6 |
TOTAL FINANCING COST |
351,765 | 6 | % | 51,038 | 1 | % | ||||||
7 |
INCOME AFTER FINANCING COST |
-108,492 | -2 | % | 410,367 | 7 | % | ||||||
8 |
OTHER FINANCIAL OPERATIONS |
-45,052 | -1 | % | 53,744 | 1 | % | ||||||
9 |
INCOME BEFORE TAXES AND WORKERS PROFIT SHARING |
-63,440 | -1 | % | 356,623 | 6 | % | ||||||
10 |
RESERVE FOR TAXES AND WORKERS PROFIT SHARING |
32,406 | 1 | % | 228,313 | 4 | % | ||||||
11 |
NET INCOME AFTER TAXES AND WORKERS PROFIT SHARING |
-95,846 | -2 | % | 128,310 | 2 | % | ||||||
12 |
SHARE IN NET INCOME OF SUBSIDIARIES AND NON-CONSOLIDATED ASSOCIATES |
(479 | ) | 0 | % | 0 | 0 | % | |||||
13 |
CONSOLIDATED NET INCOME OF CONTINUOUS |
-96,325 | -2 | % | 128,310 | 2 | % | ||||||
14 |
INCOME OF DISCONTINUOUS OPERATIONS |
12,038 | 0 | % | -77,487 | -1 | % | ||||||
15 |
CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS |
-108,363 | -2 | % | 205,797 | 3 | % | ||||||
16 |
EXTRAORDINARY ITEMS NET EXPENSES (INCOME) |
0 | 0 | % | 0 | 0 | % | ||||||
17 |
NET EFFECT AT THE BEGINNING OF THE YEAR BY CHANGES IN ACCOUNTING PRINCIPLES |
0 | 0 | % | 0 | 0 | % | ||||||
18 |
NET CONSOLIDATED INCOME |
-108,363 | -2 | % | 205,797 | 3 | % | ||||||
19 |
NET INCOME OF MINORITY INTEREST |
32,111 | 1 | % | 75,269 | 1 | % | ||||||
20 |
NET INCOME OF MAJORITY INTEREST |
-140,474 | -2 | % | 130,528 | 2 | % |
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CONSOLIDATED INCOME STATEMENT
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
REF R |
CONCEPTS |
SECOND QUARTER OF PRESENT YEAR |
SECOND QUARTER OF LAST YEAR |
|||||||||
Amount |
% |
Amount |
% |
|||||||||
1 | NET SALES | 5,680,059 | 100 | % | 5,999,042 | 100 | % | |||||
21 | DOMESTIC | 2,932,984 | 52 | % | 3,684,672 | 61 | % | |||||
22 | FOREIGN | 2,747,075 | 48 | % | 2,314,370 | 39 | % | |||||
23 | TRANSLATED INTO DOLLARS (***) | 241,175 | 4 | % | 212,180 | 4 | % | |||||
6 | TOTAL FINANCING COST | 351,765 | 100 | % | 51,038 | 100 | % | |||||
24 | INTEREST PAID | 236,979 | 67 | % | 274,969 | 539 | % | |||||
25 |
EXCHANGE LOSSES | 117,621 | 33 | % | -167,681 | -329 | % | |||||
26 | INTEREST EARNED | 9,181 | 3 | % | 5,419 | 11 | % | |||||
27 | EXCHANGE PROFITS | 0 | 0 | % | 0 | 0 | % | |||||
28 | GAIN DUE TO MONETARY POSITION | 4,222 | 1 | % | -43,325 | -85 | % | |||||
29 | LOSS IN UDIs ACTUALIZATION | 2,124 | 1 | % | 0 | 0 | % | |||||
PROFIT IN UDIs ACTUALIZATION | 0 | 0 | % | 7,506 | 15 | % | ||||||
8 | OTHER FINANCIAL OPERATIONS | -45,052 | 100 | % | 53,744 | 100 | % | |||||
29 | OTHER NET EXPENSES (INCOME) NET | -45,052 | 100 | % | 53,744 | 100 | % | |||||
30 | (PROFIT) LOSS ON SALE OF OWN SHARES | 0 | 0 | % | 0 | 0 | % | |||||
31 | (PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS | 0 | 0 | % | 0 | 0 | % | |||||
10 | RESERVE FOR TAXES AND WORKERS PROFIT SHARING | 32,406 | 100 | % | 228,313 | 100 | % | |||||
32 | INCOME TAX | 44,886 | 139 | % | 91,653 | 40 | % | |||||
33 | DEFERRED INCOME TAX | -29,063 | -90 | % | 120,308 | 53 | % | |||||
34 | WORKERS PROFIT SHARING | 16,583 | 51 | % | 16,352 | 7 | % | |||||
35 | DEFERRED WORKERS PROFIT SHARING | 0 | 0 | % | 0 | 0 | % |
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CONSOLIDATED CASH FLOW STATEMENT
FROM JANUARY THE 1ST TO JUNE 30 OF 2004 AND 2003
(Thousands of Pesos)
REF C |
CONCEPTS |
SECOND QUARTER OF PRESENT YEAR |
SECOND QUARTER OF LAST YEAR | |||
Amount |
Amount | |||||
1 | CONSOLIDATED NET INCOME | -168,847 | -125,177 | |||
2 | +(-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE USING CASH | 722,226 | 692,252 | |||
3 | CASH FLOW FROM NET INCOME OF THE YEAR | 553,379 | 567,075 | |||
4 | CASH FLOW FROM CHANGE IN WORKING CAPITAL | -597,137 | -561,445 | |||
5 | CASH GENERATED (USED) IN OPERATING ACTIVITIES | -43,758 | 5,630 | |||
6 | CASH FLOW FROM EXTERNAL FINANCING | -3,131,518 | -1,273,166 | |||
7 | CASH FLOW FROM INTERNAL FINANCING | 2,649,128 | 0 | |||
8 | CASH FLOW GENERATED (USED) BY FINANCING | -482,390 | -1,273,166 | |||
9 | CASH FLOW GENERATED (USED) IN INVESTMENT ACTIVITIES | 204,793 | -385,874 | |||
10 | NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS | -321,355 | -1,653,410 | |||
11 | CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF PERIOD | 731,682 | 2,542,519 | |||
12 | CASH AND SHORT-TERM INVESTMENTS AT THE END OF PERIOD | 410,327 | 889,109 |
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CONSOLIDATED CASH FLOW STATEMENT
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
REF C |
CONCEPTS |
SECOND QUARTER OF PRESENT YEAR |
SECOND QUARTER OF LAST YEAR | |||
Amount |
Amount | |||||
2 | + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE | 722,226 | 692,252 | |||
13 | DEPRECIATION AND AMORTIZATION FOR THE YEAR | 645,440 | 692,252 | |||
14 | + (-) NET INCREASE (DECREASE) IN PENSIONS FUND AND SENIORITY PREMIUMS | 0 | 0 | |||
15 | + (-) NET LOSS (PROFIT) IN MONEY EXCHANGE | 0 | 0 | |||
16 | + (-) NET LOSS (PROFIT) IN ASSETS AND LIABILITIES ACTUALIZATION | 0 | 0 | |||
17 | + (-) OTHER ITEMS | 76,786 | 0 | |||
4 | CASH FLOW FROM CHANGE IN WORKING CAPITAL | -597,137 | -561,445 | |||
18 | + (-) DECREASE (INCREASE) IN ACCOUNT RECEIVABLE | -654,773 | -975,479 | |||
19 | + (-) DECREASE (INCREASE) IN INVENTORIES | 81,268 | 80,262 | |||
20 | + (-) DECREASE (INCREASE) IN OTHER ACCOUNT RECEIVABLE | -44,519 | 159,020 | |||
21 | + (-) INCREASE (DECREASE) IN SUPPLIER ACCOUNT | 194,732 | 1,419 | |||
22 | + (-) INCREASE (DECREASE) IN OTHER LIABILITIES | -173,845 | 173,333 | |||
6 | CASH FLOW FROM EXTERNAL FINANCING | -3,131,518 | -1,273,166 | |||
23 | + SHORT-TERM BANK AND STOCK MARKET FINANCING | -14,890 | -1,080,126 | |||
24 | + LONG-TERM BANK AND STOCK MARKET FINANCING | -3,116,628 | -193,040 | |||
25 | + DIVIDEND RECEIVED | 0 | 0 | |||
26 | + OTHER FINANCING | 0 | 0 | |||
27 | (-) BANK FINANCING AMORTIZATION | 0 | 0 | |||
28 | (-) STOCK MARKET AMORTIZATION | 0 | 0 | |||
29 | (-) OTHER FINANCING AMORTIZATION | 0 | 0 | |||
7 | CASH FLOW FROM INTERNAL FINANCING | 2,649,128 | 0 | |||
30 | + (-) INCREASE (DECREASE) IN CAPITAL STOCKS | 2649128 | ||||
31 | (-) DIVIDENDS PAID | 0 | 0 | |||
32 | + PREMIUM ON SALE OF SHARES | 0 | 0 | |||
33 | + CONTRIBUTION FOR FUTURE CAPITAL INCREASES | 0 | 0 | |||
9 | CASH FLOW GENERATED (UTILIZED) IN INVESTMENT ACTIVITIES | 204,793 | -385,874 | |||
34 | + (-) DECREASE (INCREASE) IN STOCK INVESTMENTS OF A PERMANENT NATURE | -128,255 | 0 | |||
35 | (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT | 84,646 | -205,837 | |||
36 | (-) INCREASE IN CONSTRUCTIONS IN PROGRESS | 308,820 | -180,037 | |||
37 | + SALE OF OTHER PERMANENT INVESTMENTS | 0 | 0 | |||
38 | + SALE OF TANGIBLE FIXED ASSETS | 0 | 0 | |||
39 | + (-) OTHER ITEMS | -60,418 | 0 |
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RATIOS
CONSOLIDATED
REF P |
CONCEPTS |
SECOND QUARTER OF PRESENT FINANCIAL YEAR |
SECOND QUARTER OF PREVIOUS FINANCIAL YEAR | |||||||
YIELD | ||||||||||
1 | NET INCOME TO NET SALES | -1.53 | % | -1.1 | % | |||||
2 | NET INCOME TO STOCK HOLDERS EQUITY (**) | -27.7 | % | -14.66 | % | |||||
3 | NET INCOME TO TOTAL ASSETS (**) | -8.42 | % | -4.28 | % | |||||
4 | CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME | 0 | % | 0 | % | |||||
5 | INCOME DUE TO MONETARY POSITION TO NET INCOME | -79.44 | % | -97.12 | % | |||||
ACTIVITY | ||||||||||
6 | NET SALES TO NET ASSETS (**) | 0.8 | TIMES | 0.71 | TIMES | |||||
7 | NET SALES TO FIXED ASSETS (**) | 1.92 | TIMES | 1.57 | TIMES | |||||
8 | INVENTORIES ROTATION (**) | 5.48 | TIMES | 5.22 | TIMES | |||||
9 | ACCOUNTS RECEIVABLE IN DAYS OF SALES | 61 | DAYS | 44 | DAYS | |||||
10 | PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) | 8.75 | % | 0 | % | |||||
LEVERAGE | ||||||||||
11 | TOTAL LIABILITIES TO TOTAL ASSETS | 53.57 | % | 60.48 | % | |||||
12 | TOTAL LIABILITIES TO STOCK HOLDERS EQUITY | 1.15 | TIMES | 1.53 | TIMES | |||||
13 | FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES | 50.26 | % | 52.18 | % | |||||
14 | LONG-TERM LIABILITIES TO FIXED ASSETS | 74.04 | % | 62.95 | % | |||||
15 | OPERATING INCOME TO INTEREST PAID | 1.03 | TIMES | 1.31 | TIMES | |||||
16 | NET SALES TO TOTAL LIABILITIES (**) | 1.5 | TIME | 1.17 | TIME | |||||
LIQUIDITY | ||||||||||
17 | CURRENT ASSETS TO CURRENT LIABILITIES | 2.03 | TIME | 1.17 | TIME | |||||
18 | CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES | 1.31 | TIME | 0.76 | TIME | |||||
19 | CURRENTS ASSETS TO TOTAL LIABILITIES | 0.63 | TIME | 0.49 | TIME | |||||
20 | AVAILABLE ASSETS TO CURRENT LIABILITIES | 9.14 | % | 11.72 | % | |||||
CASH FLOW | ||||||||||
21 | CASH FLOW FROM NET INCOME TO NET SALES | 5.01 | % | 5 | % | |||||
22 | CASH FLOW FROM CHANGES IN WORKING CAPITAL TO NET SALES | -5.41 | % | -4.95 | % | |||||
23 | CASH GENERATED (USED) IN OPERATING TO INTEREST PAID | -0.09 | TIME | 0.01 | TIME | |||||
24 | EXTERNAL FINANCING TO CASH GENERATED (USED) IN FINANCING | 649.17 | % | 100 | % | |||||
25 | INTERNAL FINANCING TO CASH GENERATED (USED) IN FINANCING | -549.17 | % | 0 | % | |||||
26 | ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT TO CASH GENERATED (USED) IN INVESTMENT ACTIVITIES | 41.33 | % | 53.34 | % |
(**) | BASED ON INFORMATION FOR THE LAST TWELVE MONTHS |
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DATA PER SHARE
REF D |
CONCEPTS |
SECOND QUARTER OF PRESENT FINANCIAL YEAR |
SECOND QUARTER OF PREVIOUS FINANCIAL YEAR | |||||||||
Amount |
Amount |
|||||||||||
1 | BASIC PROFIT PER ORDINARY SHARE (**) | -1.57 | -0.74 | |||||||||
2 | BASIC PROFIT PER PREFERENT SHARE (**) | 0 | 0 | |||||||||
3 | DILUTED PROFIT PER ORDINARY SHARE (**) | 0 | 0 | |||||||||
4 | CONTINUOUS OPERATING PROFIT PER COMMON SHARE(**) | 0 | 0 | |||||||||
5 | EFFECT OF DISCONTINUOUS OPERATING ON CONTINUOUS OPERATING PROFIT PER SHARE (**) | $ | 0.00 | $ | 0.00 | |||||||
6 | EFFECT OF EXTRAORDINARY PROFIT AND LOSS ON CONTINUOUS OPERATING PROFIT PER SHARE (**) | 0 | 0 | |||||||||
7 | EFFECT BY CHANGES IN ACCOUNTING POLICIES ON CONTINUOUS OPERATING PROFIT PER SHARE (**) | 0 | 0 | |||||||||
8 | CARRYING VALUE PER SHARE | 3.93 | 5.82 | |||||||||
9 | CASH DIVIDEND ACCUMULATED PER SHARE | 0 | 0 | |||||||||
10 | DIVIDEND IN SHARES PER SHARE | 0 | SHARES | 0 | SHARES | |||||||
11 | MARKET PRICE TO CARRYING VALUE | 3.26 | TIME | 0.72 | TIME | |||||||
12 | MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE (**) | 0 | TIME | 0 | TIME | |||||||
13 | MARKET PRICE TO BASIC PROFIT PER PREFERENT SHARE (**) | 0 | 0 |
(**) | TO CALCULATE THE DATA PER SHARE USE THE NET INCOME FOR THE LAST TWELVE MONTHS |
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Auditor Notes
[ENGLISH TRANSLATION]
SIGNIFICANT ACCOUNTING POLICIES
THE ACCOUNTING POLICIES FOLLOWED BY THE COMPANY ARE IN CONFORMITY WITH MEXICAN GAAP, WHICH REQUIRE MANAGEMENT TO MAKE CERTAIN ESTIMATES AND USE CERTAIN ASSUMPTIONS TO DETERMINE THE VALUATION OF SOME OF THE BALANCES INCLUDED IN THE FINANCIAL STATEMENTS AND TO MAKE THE DISCLOSURES REQUIRED FOR INCLUSION THEREIN. ALTHOUGH ACTUAL RESULTS MAY DIFFER FROM THOSE ESTIMATES, MANAGEMENT BELIEVES THAT THE ESTIMATES AND ASSUMPTIONS USED WERE APPROPRIATE IN THE CIRCUMSTANCES.
THE SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE COMPANY ARE AS FOLLOWS:
CHANGES IN ACCOUNTING POLICIES IN 2001 THE NEW BULLETIN C-2 FINANCIAL INSTRUMENTS, WENT INTO EFFECT. THIS BULLETIN ESTABILSHES THE METHODOLOGY FOR VALUING AND RECORDING FINANCIAL INSTRUMENTS, AND REQUIRES RECOGNITION OF ALL EFFECTS OF THE FINANCIAL INSTRUMENTS CONTRACTED ON THE BALANCE SHEET AS EITHER ASSETS OR LIABILITIES, UNDER NET COMPREHENSIVE FINANCIAL RESULT. THE FINANCIAL INSTRUMENTS THAT HAVE BEEN DESIGNATED AND EFFECTIVELY FUNCTION AS HEDGING OF ASSETS AND LIABILITIES OR FUTURE TRANSACTIONS WILL AFFECT THE ASSETS, LIABILITIES OR THE RESPECTIVE TRANSACTIONS WHEN THEY ARE REALIZED, SETTLED OR TAKE PLACE, RESPECTIVELY.
AS OF 2001, INTERNATIONAL ACCOUNTING STANDARD 40, INVESTMENT PROPERTIES, ENTERED INTO EFFECT ON A SUPPLEMENTAL BASIS, ESTABLISHING VALUATION CRITERIA FOR PROPERTIES WHOSE PURPOSE IS TO GENERATE PROFITS OR INCREASE VALUE OR BOTH. PURSUANT TO CIRCULAR 55 ISSUED BY THE MEXICAN INSTITUTE OF PUBLIC ACCOUNTANTS, THE VALUATION MODEL APPLICABLE TO MEXICO IS THE COST MODEL, WHICH ESTABLISHES THAT SUCH PROPERTIES MUST BE VALUED AT ACQUISITION AND/OR CONSTRUCTION COST AND ARE RESTATED BY APPLYING THE NPCI, LESS THE RESPECTIVE ACCUMULATED DEPRECIATION.
BEGINNING JANUARY 2000, THE COMPANY ADOPTED THE PROVISIONS OF NEW BULLETIN D-4, ACCOUNTING FOR INCOME AND ASSET TAXES AND EMPLOYEE PROFIT SHARING. THE EFFECT OF THE ADOPTION WAS TO RECOGNIZE, AN INITIAL LONG-TERM LIABILITY FOR DEFERRED INCOME TAXES AFFECTING STOCKHOLDERS EQUITY UNDER CUMULATIVE EFFECT OF INITIAL RECOGNITION OF DEFERRED INCOME TAXES.
AS A RESULT OF THE IMPLEMENTATION OF THE ADOPTION OF BULLETIN D-4 MENTIONED ABOVE, THE COMPANY CHANGED ITS METHOD FOR RECORDING THE EFFECT FROM TAX CONSOLIDATION. UNTIL 1999, IT WAS RECORDED IN THE YEAR IN WHICH THE RESPECTIVE ANNUAL CONSOLIDATED TAX RETURN WAS FILED. BEGINNING IN 2000, THIS BENEFIT IS RECORDED IN RESULTS OF THE YEAR IN WHICH THE BENEFIT IS GENERATED.
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BASIS OF CONSOLIDATION THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS INCLUDE THOSE OF DESC AND THE SUBSIDIARIES IN WHICH THERE IS STOCKHOLDING AND ADMINISTRATIVE CONTROL. ALL SIGNIFICANT INTERCOMPANY TRANSACTIONS AND BALANCES HAVE BEEN ELIMINATED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS.
THE EQUITY IN NET INCOME (LOSS) AND CHANGES IN STOCKHOLDERS EQUITY OF THOSE SUBSIDIARIES THAT WERE ACQUIRED OR SOLD, HAS BEEN INCLUDED IN THE FINANCIAL STATEMENTS AS OF OR UP TO THE DATE ON WHICH THE TRANSACTIONS TOOK PLACE AND WAS RESTATED IN TERMS OF THE PURCHASING POWER AS OF THE END OF THE LATEST PERIOD.
INVESTMENTS IN SHARES OF ASSOCIATED COMPANIES AND UNCONSOLIDATED SUBSIDIARIES ARE RECORDED USING THE EQUITY METHOD.
TRANSLATION OF FINANCIAL STATEMENTS OF SUBSIDIARIES THE FINANCIAL STATEMENTS OF FOREIGN SUBSIDIARIES, WHOSE OPERATIONS ARE NOT AN INTEGRAL PART OF THE MEXICAN COMPANIES (FOREIGN ENTITIES), ARE RESTATED FOR THE INFLATION RATE OF THE RESPECTIVE FOREIGN COUNTRY AND ARE TRANSLATED INTO MEXICAN PESOS AT THE EXCHANGE RATE IN EFFECT AT THE END OF THE YEAR. THE FINANCIAL STATEMENTS OF FOREIGN SUBSIDIARIES, WHOSE OPERATIONS ARE AN INTEGRAL PART OF THE MEXICAN COMPANIES (INTEGRATED FOREIGN OPERATIONS), ARE TRANSLATED USING YEAR-END EXCHANGE RATES FOR MONETARY ITEMS AND HISTORICAL EXCHANGE RATES FOR NONMONETARY ITEMS, AND THE TRANSLATED FINANCIAL STATEMENTS ARE THEN RESTATED USING THE NATIONAL CONSUMER PRICE INDEX (NCPI) OF MEXICO. THE EFFECTS OF TRANSLATING FOREIGN ENTITIES ARE RECORDED DIRECTLY IN STOCKHOLDERS EQUITY IN THE CUMULATIVE EFFECT OF RESTATEMENT ACCOUNT. THE EFFECTS OF TRANSLATING INTEGRATED FOREIGN OPERATIONS ARE INCLUDED IN THE INTEGRAL FINANCING RESULT OF THE YEAR IN THE MONETARY POSITION GAIN ACCOUNT. SUCH EFFECTS ARE NOT SIGNIFICANT.
RECOGNITION OF THE EFFECTS OF INFLATION THE COMPANIES RESTATE ALL OF THEIR FINANCIAL STATEMENTS IN TERMS OF THE PURCHASING POWER OF THE MEXICAN PESO AS OF THE END OF THE LATEST PERIOD, THEREBY COMPREHENSIVELY RECOGNIZING THE EFFECTS OF INFLATION. THE PRIOR YEAR AMOUNTS PRESENTED HEREIN DIFFER FROM THOSE ORIGINALLY REPORTED IN TERMS OF MEXICAN PESOS OF THE RESPECTIVE YEAR. CONSEQUENTLY, ALL FINANCIAL STATEMENT AMOUNTS ARE COMPARABLE, BOTH FOR THE CURRENT AND THE PRIOR YEAR, BECAUSE ALL ARE STATED IN TERMS OF MEXICAN PESOS OF THE SAME PURCHASING POWER.
CASH EQUIVALENTS INVESTMENTS IN MARKETABLE SECURITIES CONSIST MAINLY OF ACCEPTANCES, BANK PROMISSORY NOTES, AND PAPER ISSUED BY THE MEXICAN AND UNITED STATES OF AMERICA GOVERNMENTS, AT MARKET (COST PLUS ACCRUED INTEREST).
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INVENTORIES AND COST OF SALES INVENTORIES ARE ORIGINALLY RECORDED AT THEIR ACQUISITION OR MANUFACTURING COST AND RESTATED TO THEIR SPECIFIC NET REPLACEMENT COST WITHOUT EXCEEDING NET REALIZABLE VALUE. SUBSTANTIALLY ALL SUBSIDIARIES COMPUTE COST OF SALES USING THE REPLACEMENT COST AT THE TIME OF SALE.
LAND HELD FOR DEVELOPMENT AND REAL ESTATE PROJECTS UNDEVELOPED LAND REPRESENTS LAND RESERVES THAT, TOGETHER WITH DEVELOPED LAND AND ONGOING AND COMPLETED PROJECTS, ARE CONSIDERED NON-CURRENT INVENTORIES, SINCE THEY ARE HELD FOR SALE. THEY INCLUDE ACQUISITION, DEVELOPMENT AND CONSTRUCTION COSTS AND ARE RESTATED IN U.S. DOLLARS BASED ON THE SLIPPAGE OF THE MARKET EXCHANGE RATE FOR THE PURPOSE OF SHOWING VALUES IN ACCORDANCE WITH THE CURRENT SITUATION OF THE REAL ESTATE MARKET.
THE COMPANY CAPITALIZES THE NET COMPREHENSIVE FINANCING COST ON DEBT USED TO FINANCE REAL ESTATE PROJECTS IN PROGRESS, IN ADDITION TO THEIR CONSTRUCTION AND DEVELOPMENT COSTS.
INVESTMENT IN SHARES INVESTMENT IN SHARES HAS BEEN RECORDED USING THE EQUITY METHOD, BASED ON THE FINANCIAL STATEMENTS PREPARED ON THE SAME BASIS AS THOSE OF THE COMPANY, AND IS PRESENTED UNDER OTHER ASSETS IN THE BALANCE SHEET.
PROPERTY, PLANT AND EQUIPMENT THESE ITEMS IS RECORDED AT ACQUISITION COST AND IS RESTATED BY USING NCPI FACTORS. FOR FOREIGN FIXED ASSETS, THEIR ACQUISITION COST IS RESTATED FOR INFLATION OF THE COUNTRY OF ORIGIN AND THE FLUCTUATION OF THE MEXICAN PESO AGAINST SUCH CURRENCY IS CONSIDERED.
DEPRECIATION IS CALCULATED BY THE STRAIGHT-LINE METHOD BASED ON THE REMAINING USEFUL LIVES OF THE ASSETS.
THE COMPANIES CAPITALIZE THE NET COMPREHENSIVE FINANCING COST ON DEBT USED TO FINANCE CONSTRUCTION IN PROGRESS AND THE INSTALLATION OF EQUIPMENT, UNTIL THEY ARE PLACED IN SERVICE.
IMPAIRMENT OF FIXED ASSETS THE AMOUNTS SHOWN IN THE ACCOMPANYING CONSOLIDATED STATEMENTS OF INCOME BASICALLY REFER TO THE REDUCTION IN VALUE OF PROPERTY AND EQUIPMENT OF SOME PRODUCTION FACILITIES, IN ORDER TO REFLECT THEIR REALIZABLE VALUE IN ACCORDANCE WITH THE CURRENT SITUATION OF SUCH BUSINESSES.
GOODWILL THE GOODWILL RESULTING FROM ACQUISITIONS MADE IN EXCESS OF BOOK VALUE IS AMORTIZED OVER PERIODS RANGING FROM FIVE TO 20 YEARS, THE TERMS OVER WHICH THE BENEFITS FROM THE INVESTMENT WILL BE REALIZED.
FINANCIAL INSTRUMENTS FINANCIAL ASSETS AND LIABILITIES RESULTING FROM ANY TYPE OF FINANCIAL INSTRUMENT, EXCEPT FOR INVESTMENTS IN FINANCIAL INSTRUMENTS HELD TO MATURITY, ARE PRESENTED IN THE BALANCE SHEET AT FAIR VALUE. THE EFFECTS OF THE
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VALUATION OF A FINANCIAL ASSET OR LIABILITY ARE RECOGNIZED IN RESULTS OF OPERATIONS OF THE RESPECTIVE PERIOD. INVESTMENTS IN FINANCIAL INSTRUMENTS HELD TO MATURITY ARE VALUED AT ACQUISITION COST. THE COSTS AND YIELDS OF FINANCIAL INSTRUMENTS ARE RECOGNIZED IN RESULTS OF THE PERIOD IN WHICH THEY OCCUR.
DERIVATE FINANCIAL INSTRUMENTS THE INTERNAL CONTROL SYSTEM ESTABLISHED BY THE COMPANY INCLUDES POLICIES AND PROCEDURES TO MANAGE ITS EXPOSURE TO FLUCTUATIONS IN FOREIGN CURRENCY EXCHANGE RATES USING DERIVATIVE FINANCIAL INSTRUMENTS. THESE INSTRUMENTS ARE TRADED ONLY WITH AUTHORIZED INSTITUTIONS AND READING LIMITS HAVE BEEN ESTABLISHED FOR EACH INSTITUTION. THE COMPANY DOES NOT CARRY OUT TRANSACTIONS WITH DERIVATIVE FINANCIAL INSTRUMENTS FOR THE PURPOSE OF SPECULATION.
THE DERIVATIVE FINANCIAL INSTRUMENTS CURRENTLY USED BY THE COMPANY ARE PRIMARILY HEDGE CONTRACTS TO REDUCE ITS EXPOSURE TO EXCHANGE RATE FLUCTUATIONS. PREMIUMS PAID ARE AMORTIZED OVER THE TERM OF THE DERIVATIVE FINANCIAL INSTRUMENT USING THE UNPAID BALANCE OF THE LIABILITY BEING HEDGED.
DERIVATIVE FINANCIAL INSTRUMENTS IDENTIFIED AS HEDGES ARE VALUED BY APPLYING THE SAME VALUATION CRITERIA USED FOR THE ASSETS OR LIABILITIES HEDGED, AND THE EFFECTS OF THEIR VALUATION ARE RECOGNIZED IN RESULTS OF OPERATIONS, NET OF COSTS, EXPENSES, OR REVENUE FROM THE ASSETS OR LIABILITIES WHOSE RISKS ARE BEING HEDGED. THE FINANCIAL ASSETS OR LIABILITIES GENERATED BY THESE INSTRUMENTS ARE PRESENTED IN THE BALANCE SHEET AS A REDUCTION OF THE LIABILITIES OR ASSETS WHOSE RISKS ARE BEING HEDGED.
INCOME TAX, ASSET TAX AND EMPLOYEE PROFIT SHARING INCOME TAX (ISR) AND EMPLOYEE STATUTORY PROFIT-SHARING (PTU) ARE RECORDED IN RESULTS OF THE YEAR IN WHICH THEY ARE INCURRED. DEFERRED INCOME TAX ASSETS AND LIABILITIES ARE RECOGNIZED FOR TEMPORARY DIFFERENCES RESULTING FROM COMPARING THE BOOK AND TAX VALUES OF ASSETS AND LIABILITIES, PLUS ANY FUTURE BENEFITS FROM TAX LOSS CARRYFORWARDS DEFERRED INCOME TAX ASSETS ARE REDUCES BY ANY BENEFITS THAT, IN THE OPINION OF MANAGEMENT, WILL PROBABLY NOT BE REALIZED. DEFERRED PTU IS DERIVED FROM TEMPORARY DIFFERENCES BETWEEN THE BOOK RESULT AND INCOME FOR PTU PURPOSES AND IS RECOGNIZED ONLY WHEN IT CAN BE REASONABLY ASSUMED THAT THEY WILL GENERATE A LIABILITY OR BENEFIT, AND THERE IS NO INDICATION THAT THIS SITUATION WILL CHANGE IN SUCH A WAY THAT THE LIABILITIES WILL NOT BE PAID OR BENEFITS WILL NOT BE REALIZED.
THE ASSET TAX PAID THAT IS EXPECTED TO BE RECOVERABLE IS RECORDED AS AN ADVANCE PAYMENT OF INCOME TAX AND IS PRESENTED ON THE BALANCE SHEET WITH DEFERRED ISR.
EMPLOYEE RETIREMENT OBLIGATIONS THE LIABILITY FROM SENIORITY PREMIUMS, PENSIONS AND RETIREMENT PAYMENTS, WHICH IS SIMILAR TO A PENSION, IS RECORDED AS ACCRUED, AND IS CALCULATED BY INDEPENDENT
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ACTUARIES BASED ON THE PROJECTED CREDIT UNIT METHOD, AT REAL INTEREST RATES. THEREFORE, THE LIABILITY IS BEING RECOGNIZED WHICH, AT PRESENT VALUE, IS EXPECTED TO COVER THE OBLIGATION FOR THESE BENEFITS AT THE ESTIMATED RETIREMENT DATE OF ALL THE COMPANIES EMPLOYEES. SEVERANCE PAYMENTS ARE CHARGED TO RESULTS WHEN THEY ARE DETERMINED TO BE PAYABLE.
RESTATED STOCKHOLDERS EQUITY THIS ITEM CONSISTS OF MONETARY POSITION RESULT ACCUMULATED THROUGH THE FIRST RESTATEMENT OF THE FINANCIAL STATEMENTS AND THE GAIN (LOSS) FROM HOLDING MONETARY ASSETS, BECAUSE PRICE LEVELS INCREASED ABOVE (BELOW) INFLATION.
REVENUE RECOGNITION REVENUES OF THE SUBSIDIARIES OF THE AUTOPARTS, CHEMICAL AND FOOD SECTORS ARE RECOGNIZED WHEN THE INVENTORIES ARE DELIVERED OR SHIPPED TO CUSTOMERS AND CUSTOMERS ASSUME RESPONSIBILITY FOR THEM.
THE REAL ESTATE SECTOR RECOGNIZES THE REVENUES AND COSTS FROM SALES OF URBANIZED PLOTS OF LAND IN RESULTS WHEN THE SALES ARE FORMALIZED AND THE DEPOSITS SECURING THE TRANSACTION ARE RECEIVED. THE INDIVIDUAL ASSIGNMENT OF THE COST OF THE LAND AND REAL ESTATE PROJECT TAKES INTO CONSIDERATION THE RELATIVE SELLING PRICE OF THE TOTAL PROJECT SO AS TO MAINTAIN THE SAME PROFIT MARGIN THROUGHOUT THE PROJECT.
REVENUES AND COSTS FROM REAL ESTATE PROJECTS ARE RECORDED ORIGINALLY AS A DEFERRED CREDIT FOR CONSTRUCTION COMMITMENTS AND AS REAL ESTATE PROJECTS IN PROCESS, AND ARE RECOGNIZED IN RESULTS BASED ON THE PERCENTAGE OF COMPLETION METHOD. THEREFORE, REVENUE IS MATCHED WITH COSTS INCURRED TO REACH THE STAGE OF COMPLETION TO TERMINATE THE PROJECT. IF THE LAST ESTIMATED COSTS DETERMINED EXCEED THE TOTAL REVENUES CONTRACTED, THE RESPECTIVE PROVISION IS CHARGED TO RESULTS OF THE YEAR.
INTEGRAL FINANCIAL RESULT THIS REPRESENTS THE NET EFFECT OF INTEREST EARNED AND INCURRED, EXCHANGE GAINS AND LOSSES AND MONETARY POSITION GAIN OR LOSS ON, WHICH IS THE RESULT OF MAINTAINING MONETARY ASSETS AND LIABILITIES WHOSE REAL PURCHASING POWER IS MODIFIED BY THE EFFECTS OF INFLATION.
FOREIGN CURRENCY TRANSACTIONS ARE RECORDED AT THE EFFECTIVE EXCHANGE RATE AT THE DATE THE TRANSACTIONS ARE CARRIED OUT AND FOREIGN CURRENCY ASSETS AND LIABILITIES ARE ADJUSTED TO THE EXCHANGE RATE EFFECTIVE AT YEAR-END.
INCOME PER SHARE BASIC INCOME (LOSS) PER ORDINARY SHARE IS CALCULATED BY DIVIDING CONSOLIDATED NET INCOME (LOSS) OF MAJORITY STOCKHOLDERS BY THE WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE YEAR.
COMPREHENSIVE INCOME (LOSS) COMPREHENSIVE INCOME (LOSS) IS COMPRISED OF THE NET CONSOLIDATED INCOME FOR THE PERIOD PLUS
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(LESS) ANY GAINS OR LOSSES THAT UNDER SPECIFIC ACCOUNTING REGULATIONS ARE RECORDED DIRECTLY IN STOCKHOLDERS EQUITY, SUCH AS THE GAIN OR LOSS FROM HOLDING NONMONETARY ASSETS.
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STOCK EXCHANGE CODE: DESC |
QUARTER: 2 | YEAR: 2004 |
Annex 3
SHARE OWNERSHIP
COMPANY NAME |
MAIN ACTIVITIES |
NUMBER OF SHARES |
OWNERSHIP |
TOTAL AMOUNT (Thousands of Pesos) | ||||||
SUBSIDIARIES |
ACQUISITION COST |
PRESENT VALUE | ||||||||
BOSQUES DE LAS LOMAS, S.A. DE C.V. |
Real Estate Sector | 34,051,500 | 100.00 | 71,069 | 71,069 | |||||
OPERADORA DE NAYARIT, S.A. DE C.V. |
Real Estate Sector | 49 | 78.12 | 115,392 | 115,392 | |||||
PROMOCIONES BOSQUES, S.A. DE C.V. |
Real Estate Sector | 100,402,106 | 99.99 | 411,021 | 411,021 | |||||
CORPORATIVO DINE, S.A. DE C.V |
Real Estate Sector | 2,344,119,922 | 99.99 | 10,460 | 10,460 | |||||
HOLDING DICOMEX, S.A. DE C.V |
Real Estate Sector | 70,870,000 | 50.00 | 89,140 | 89,140 | |||||
TURISTICA AKKO, S.A. DE C.V. |
Real Estate Sector | 9,998 | 99.98 | -1,844 | -1,844 | |||||
BOSQUES DE SANTA FE, S.A. DE C.V. |
Real Estate Sector | 1,361 | 99.92 | -52,591 | -52,591 | |||||
CAÑA DE SANTA FE, S.A DE C.V. |
Real Estate Sector | 202,939,999 | 73.00 | 905,958 | 905,958 | |||||
INMOBILIARIA DINE, S.A. DE C.V. |
Real Estate Sector | 36,710,199 | 99.99 | 93,143 | 93,143 | |||||
CANTILES DE MITA |
Real Estate Sector | 115,003,237 | 98.09 | 2,106,739 | 2,106,739 | |||||
CLUB DE GOLF PUNTA MITA, S.A. DE C.V. |
Real Estate Sector | 12,410,869 | 87.69 | 126,657 | 126,657 | |||||
DESC AUTOMOTRIZ, S.A. DE C.V. |
Autoparts Sector | 700,968,215 | 100.00 | 3,180,400 | 3,180,400 | |||||
CORFUERTE, S.A. DE C.V. |
Food Sector | 901,413,494 | 99.34 | 456,187 | 456,187 | |||||
AGROKEN, S.A. DE C.V. |
Food Sector | 584,434,261 | 99.99 | 579,412 | 579,412 | |||||
AUTHENTIC SPECIALITY FOODS |
Food Sector | 316,236 | 99.93 | 388,070 | 388,070 | |||||
AGROBIOS CORPORATIVO |
Food Sector | 550,000 | 99.99 | 34,813 | 34,813 | |||||
CID CENTRO DE INVESTIGACION Y DESARROLLO |
Chemicals Sector | 190,386,960 | 99.99 | 23,354 | 23,354 | |||||
DIRECCION IRSA, S.A. DE C.V. |
Chemicals Sector | 4,201,800 | 99.99 | -63,383 | -63,383 | |||||
FENOQUIMIA, S.A. DE C.V. |
Chemicals Sector | 5,000,000 | 99.97 | -316,523 | -316,523 | |||||
FORESTACIONES OPERATIVAS DE MEXICO, S.A. |
Chemicals Sector | 31,658 | 99.98 | 10,030 | 10,030 | |||||
GIRSA CORPORATIVO, S.A. DE C.V. |
Chemicals Sector | 41,510,000 | 99.99 | 10,801 | 10,801 | |||||
GIRSA CONCENTRADORA S.A. DE C.V. |
Chemicals Sector | 615,124,721 | 99.99 | 827,537 | 827,537 | |||||
H2ORIZONTES, S.A. DE C.V. |
Chemicals Sector | 50,000 | 99.89 | -14,666 | -14,666 | |||||
QUIMIR, S.A. DE C.V. |
Chemicals Sector | 1,930,987 | 99.99 | 125,686 | 125,686 | |||||
RESIRENE, S.A. DE C.V. |
Chemicals Sector | 236,058,979 | 99.99 | 180,842 | 180,842 | |||||
TECNO INDUSTRIA RF, S.A. DE C.V. |
Chemicals Sector | 10,675,000 | 99.99 | 7,575 | 7,575 | |||||
REXCEL, S.A. DE C.V. |
Chemicals Sector | 1,001,000 | 99.99 | 94,017 | 94,017 | |||||
DYNASOL ELASTOMEROS, S.A. (ESPAÑA) |
Chemicals Sector | 1 | 50.00 | 435,515 | 435,515 | |||||
DYNASOL GESTION, S.A. |
Chemicals Sector | 1 | 50.00 | 2,323 | 2,323 | |||||
DYNASOL, L.L.C. |
Chemicals Sector | 1 | 50.00 | 18,552 | 18,552 | |||||
INDUSTRIAS NEGROMEX, S.A. DE C.V. |
Chemicals Sector | 585,833,830 | 99.99 | 727,988 | 727,988 | |||||
PLASTIGLAS DE MEXICO, S.A. DE C.V. |
Chemicals Sector | 200,778,201 | 94.99 | 102,331 | 102,331 | |||||
BIOQUIMEX NATURAL, S.A. DE C.V. |
Chemicals Sector | 470,328,749 | 99.99 | -10,240 | -10,240 | |||||
AEROPYCSA, S.A. DE C.V. |
Service Companies | 458,329,279 | 99.99 | 109,548 | 109,548 | |||||
CORPORATIVO ARCOS DESC, S.A. DE C.V. |
Service Companies | 260,524,996 | 99.99 | 57,680 | 57,680 | |||||
DESC CORPORATIVO, S.A. DE C.V. |
Service Companies | 266,253,830 | 99.99 | -180,977 | -180,977 | |||||
BIG SOFT, S.A. DE C.V. |
Service Companies | 8,612,508 | 99.99 | 7,445 | 7,445 | |||||
PACIFIC INTERNATIONAL AIRWAYS, S.A. DE C.V. |
Service Companies | 244,498 | 99.99 | 1,486 | 1,486 | |||||
SERVICIOS CORPORATIVOS ARCOS, S.A.DE C.V. |
Service Companies | 449 | 99.77 | 1,653 | 1,653 | |||||
OTHER SUBSIDIARIES (4) (NO. OF SUBS.:) |
1 | 0 | 0 | 0 | ||||||
Associates |
||||||||||
1. Others |
10,672,600 | 10,672,600 | ||||||||
OTHERS |
SERVICE | 1 | 100 | 194,767 | 194,767 | |||||
0 | 0 | 0 | 0 | |||||||
Other Permanent Investments |
3,618,846 | |||||||||
Total |
14,486,213 |
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STOCK EXCHANGE CODE:DESC |
QUARTER: 2 | YEAR: 2004 |
Annex 5
CREDITS BREAKDOWN
(Thousands of Pesos)
Credit Type / Institution |
Amortization Date |
Rate of Interest |
Denominated in Pesos | |||||
Banks |
Until 1 Year |
More Than 1 Year | ||||||
LT | ||||||||
Financial Institutions |
||||||||
IFC |
15-Feb-06 | 3.300 | 0 | 0 | ||||
IFC |
15-Sep-09 | 4.900 | 0 | 0 | ||||
IFC |
15-Sep-09 | 10.350 | 0 | 0 | ||||
DEG |
28-Dec-06 | 4.125 | 0 | 0 | ||||
CITIBANK NA (Syndicate) |
23-Jun-06 | 3.820 | 0 | 0 | ||||
CITIBANK NA (Syndicate) |
23-Dec-08 | 3.800 | 0 | 0 | ||||
BBVA BANCOMER (Syndicate) |
23-Dec-08 | 9.609 | 0 | 845,755 | ||||
Varios Arrend. |
31-Dec-10 | 8.400 | 0 | 0 | ||||
BANCO SANTANDER MEXICANO |
31-Jan-07 | 10.024 | 3,263 | 5,697 | ||||
BANCO SANTANDER MEXICANO |
31-Jan-07 | 7.797 | 1,029 | 1,640 | ||||
INBURSA |
31-Aug-04 | 12.540 | 15,000 | 0 | ||||
INBURSA |
28-Feb-07 | 12.900 | 5,004 | 29,996 | ||||
BANAMEX-CITIBANK |
16-May-08 | 8.061 | 1,603 | 8,057 | ||||
COMERICA BANK |
26-Jul-04 | 2.670 | 0 | 0 | ||||
COMERICA BANK |
13-Dec-04 | 3.895 | 0 | 0 | ||||
COMERICA BANK |
9-Jul-04 | 2.630 | 0 | 0 | ||||
COMERICA BANK |
19-Jul-04 | 2.630 | 0 | 0 | ||||
COMERICA BANK |
9-Aug-04 | 2.830 | 0 | 0 | ||||
COMERICA BANK |
20-Jul-04 | 2.630 | 0 | 0 | ||||
COMERICA BANK |
9-Jul-04 | 2.600 | 0 | 0 | ||||
COMERICA BANK |
20-Jul-04 | 2.830 | 0 | 0 | ||||
TOTAL BANKS |
25,899 | 891,145 | ||||||
Credit Type / Institution |
Amortization Date |
Rate of Interest |
Amortization of Credits in Foreign Currency with National Entities (Thousands of $) | |||||||||||||
Time Interval | ||||||||||||||||
Banks |
Current Year |
Until 1 Year |
Until 2 Years |
Until 3 Years |
Until 4 Years |
Until 5 Years | ||||||||||
ST | LP | |||||||||||||||
Financial Institutions |
||||||||||||||||
IFC |
15-Feb-06 | 3.300 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
IFC |
15-Sep-09 | 4.900 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
IFC |
15-Sep-09 | 10.350 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
DEG |
28-Dec-06 | 4.125 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
CITIBANK NA (Syndicate) |
23-Jun-06 | 3.820 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
CITIBANK NA (Syndicate) |
23-Dec-08 | 3.800 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
BBVA BANCOMER (Syndicate) |
23-Dec-08 | 9.609 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Varios Arrend. |
31-Dec-10 | 8.400 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
BANCO SANTANDER MEXICANO |
31-Jan-07 | 10.024 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
BANCO SANTANDER MEXICANO |
31-Jan-07 | 7.797 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
INBURSA |
31-Aug-04 | 12.540 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
INBURSA |
28-Feb-07 | 12.900 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
BANAMEX-CITIBANK |
16-May-08 | 8.061 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
26-Jul-04 | 2.670 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
13-Dec-04 | 3.895 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
9-Jul-04 | 2.630 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
19-Jul-04 | 2.630 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
9-Aug-04 | 2.830 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
20-Jul-04 | 2.630 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
9-Jul-04 | 2.600 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
20-Jul-04 | 2.830 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
TOTAL BANKS |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Credit Type / Institution |
Amortization Date |
Rate of Interest |
Amortization of Credits in Foreign Currency with foreign entities (Thousands of $) | |||||||||||||
Time Interval | ||||||||||||||||
Banks |
Current Year |
Until 1 Year |
Until 2 Years |
Until 3 Years |
Until 4 Years |
Until 5 Years | ||||||||||
ST | LP | |||||||||||||||
Financial Institutions |
||||||||||||||||
IFC |
15-Feb-06 | 3.300 | 8,232 | 8,232 | 16,479 | 0 | 0 | 0 | ||||||||
IFC |
15-Sep-09 | 4.900 | 37,056 | 37,056 | 74,124 | 74,124 | 74,124 | 111,169 | ||||||||
IFC |
15-Sep-09 | 10.350 | 49,416 | 49,416 | 98,821 | 98,821 | 98,821 | 148,247 | ||||||||
DEG |
28-Dec-06 | 4.125 | 2,383 | 1,211 | 2,410 | 1,226 | 0 | 0 | ||||||||
CITIBANK NA (Syndicate) |
23-Jun-06 | 3.820 | 0 | 0 | 691,782 | 0 | 0 | 0 | ||||||||
CITIBANK NA (Syndicate) |
23-Dec-08 | 3.800 | 0 | 0 | 251,774 | 1,713,117 | 1,713,117 | |||||||||
BBVA BANCOMER (Syndicate) |
23-Dec-08 | 9.609 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Varios Arrend. |
31-Dec-10 | 8.400 | 3,110 | 0 | 6,676 | 7,356 | 8,105 | 24,944 | ||||||||
BANCO SANTANDER MEXICANO |
31-Jan-07 | 10.024 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
BANCO SANTANDER MEXICANO |
31-Jan-07 | 7.797 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
INBURSA |
31-Aug-04 | 12.540 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
INBURSA |
28-Feb-07 | 12.900 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
BANAMEX-CITIBANK |
16-May-08 | 8.061 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
26-Jul-04 | 2.670 | 57,649 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
13-Dec-04 | 3.895 | 92,238 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
9-Jul-04 | 2.630 | 18,217 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
19-Jul-04 | 2.630 | 12,567 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
9-Aug-04 | 2.830 | 17,675 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
20-Jul-04 | 2.630 | 5,938 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
9-Jul-04 | 2.600 | 3,793 | 0 | 0 | 0 | 0 | 0 | ||||||||
COMERICA BANK |
20-Jul-04 | 2.830 | 2,744 | 0 | 0 | 0 | 0 | 0 | ||||||||
TOTAL BANKS |
311,018 | 95,915 | 890,292 | 433,301 | 1,894,167 | 1,997,477 | ||||||||||
LISTED IN THE MEXICAN STOCK EXCHANGE |
Amortization Date |
Rate of Interest |
Denominated in Pesos | |||||
Until 1 Year |
More Than 1 Year | |||||||
UNSECURED DEBT |
||||||||
UDIBONOS |
10/21/2006 | 9.00 | 0 | 1,105,368 | ||||
UDIBONOS |
7/13/2007 | 8.20 | 0 | 1,216,480 | ||||
0 | 2,321,848 | |||||||
TOTAL STOCK EXCHANGE |
||||||||
SUPPLIERS |
||||||||
OTHERS |
852,066 | 0 | ||||||
TOTAL SUPPLIERS |
852,066 | 0 | ||||||
OTHERS |
1,254,055 | 0 | ||||||
OTHER CURRENT LIABILITIES AND OTHER CREDITS |
1,254,055 | 0 | ||||||
2,132,020 | 3,212,993 | |||||||
LISTED IN THE MEXICAN STOCK EXCHANGE |
Amortization Date |
Rate of Interest |
Amortization of Credits in Foreign Currency with National Entities (Thousands of $) | |||||||||||||
Time Interval | ||||||||||||||||
Current Year |
Until 1 Year |
Until 2 Years |
Until 3 Years |
Until 4 Years |
Until 5 Years | |||||||||||
UNSECURED DEBT |
||||||||||||||||
UDIBONOS |
10/21/2006 | 9.00 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
UDIBONOS |
7/13/2007 | 8.20 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
TOTAL STOCK EXCHANGE |
||||||||||||||||
SUPPLIERS |
||||||||||||||||
OTHERS |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
TOTAL SUPPLIERS |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
OTHERS |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
OTHER CURRENT LIABILITIES AND OTHER CREDITS |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
LISTED IN THE MEXICAN STOCK EXCHANGE |
Amortization Date |
Rate of Interest |
Amortization of Credits in Foreign Currency with foreign entities (Thousands of $) | |||||||||||||
Time Interval | ||||||||||||||||
Current Year |
Until 1 Year |
Until 2 Years |
Until 3 Years |
Until 4 Years |
Until 5 Years | |||||||||||
UNSECURED DEBT |
||||||||||||||||
UDIBONOS |
10/21/2006 | 9.00 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
UDIBONOS |
7/13/2007 | 8.20 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
TOTAL STOCK EXCHANGE |
||||||||||||||||
SUPPLIERS |
0 | |||||||||||||||
OTHERS |
0 | 1,277,649 | 0 | 0 | 0 | 0 | ||||||||||
TOTAL SUPPLIERS |
0 | 1,277,649 | 0 | 0 | 0 | 0 | ||||||||||
OTHERS |
0 | 410,647 | 0 | 0 | 0 | 0 | ||||||||||
OTHER CURRENT LIABILITIES AND OTHER CREDITS |
0 | 410,647 | 0 | 0 | 0 | 0 | ||||||||||
311,018 | 1,784,211 | 890,292 | 433,301 | 1,894,167 | 1,997,477 | |||||||||||
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STOCK EXCHANGE CODE:DESC |
QUARTER:2 | YEAR: 2004 |
Annex 6
MONETARY POSITION IN FOREIGN EXCHANGE
(Thousands of Pesos)
DOLLARS (1) |
OTHER CURRENCIES |
TOTAL THOUSANDS OF | ||||||||
TRADE BALANCE |
THOUSANDS OF DOLLARS |
THOUSANDS OF PESOS |
THOUSANDS OF DOLLARS |
THOUSANDS OF PESOS |
||||||
TOTAL ASSETS |
373,716 | 4,308,835 | 0 | 0 | 4,308,835 | |||||
LIABILITIES POSITION |
671,242 | 7,739,214 | 0 | 0 | 7,739,214 | |||||
SHORT TERM LIABILITIES POSITION |
182,173 | 2,100,395 | 0 | 0 | 2,100,395 | |||||
LONG TERM LIABILITIES POSITION |
489,069 | 5,638,819 | 0 | 0 | 5,638,819 | |||||
NET BALANCE |
-297,525 | -3,430,379 | 0 | 0 | -3,430,379 |
21
www.desc.com.mx
STOCK EXCHANGE CODE:DESC |
QUATER:2 | YEAR: 2004 |
Annex 7
INTEGRATION AND INCOME CALCULATION BY MONETARY POSITION
(Thousands of Pesos)
MONTH |
MONETARY ASSETS |
MONETARY LIABILITIES |
(ASSET) LIABILITIES MONETARY POSITION |
MONTHLY INFLATION |
MONTHLY (PROFIT) AND LOSS | |||||
JANUARY |
8,510,174 | 17,409,609 | -8,899,435 | 0.62 | 55,176 | |||||
FEBRUARY |
8,113,410 | 16,999,728 | -8,886,318 | 0.60 | 53,318 | |||||
MARCH |
8,464,305 | 17,284,129 | -8,819,824 | 0.34 | 29,987 | |||||
APRIL |
8,433,157 | 17,308,405 | -8,875,248 | 0.15 | 13,313 | |||||
MAY |
8,971,625 | 15,240,257 | -6,268,632 | -0.25 | -15,672 | |||||
JUNE |
9,046,923 | 15,147,581 | -6,100,658 | 0.16 | 9,761 | |||||
JULY |
||||||||||
AUGUST |
||||||||||
SEPTEMBER |
||||||||||
OCTOBER |
||||||||||
NOVEMBER |
||||||||||
DECEMBER |
||||||||||
UPDATED INFORMATION |
||||||||||
CAPITALIZATION |
-11,745 | |||||||||
FOREIGN CORP. |
||||||||||
OTHER |
||||||||||
TOTAL |
134,138 |
22
www.desc.com.mx
STOCK EXCHANGE CODE:DESC |
QUATER:1 | YEAR: 2004 |
Bonds and Medium Term Notes Listing in Stock Market (1)
Annex 8
Financial Covenants Based on Issuances or Instruments
-1 Interest Coverage.
The amount obtained by dividing the sum of (i) the consolidated operating profit plus depreciation and amortization during the immediately prior 4 full fiscal quarters by (ii) consolidated financial expense during such period. The borrower will not permit the ratio to be less than 2.25 for such period.
-2 Capitalization.
The amount obtained by dividing, (i) total debt with cost minus cash plus fifty million dollars, by (ii) net assets plus total debt with cost minus cash plus fifty million dollars. The borrower will not permit the ratio to be higher than .55 times.
-3 Leverage Ratio.
The amount obtained by dividing (i) total debt with cost minus cash plus fifty million dollars, by (ii) the sum of the consolidated operating profit plus depreciation and amortization during the immediately prior 4 full fiscal quarters. The borrower will not permit the ratio to exceed 4.35 times.
Current Status of Financial Covenants
(1) Interest Coverage. |
2.67 | |
(2) Capitalization. |
0.40 | |
(3) Leverage Ratio. |
4.09 |
23
www.desc.com.mx
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE:DESC |
QUARTER:2 | YEAR: 2004 |
PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
ANNEX 9 | CONSOLIDATED |
PLANT OR CENTER |
ECONOMIC ACTIVITY |
PLANT CAPACITY (1) |
UTILIZATION % |
||||||
EJES TRACTIVOS, S.A. DE C.V. | REAR AXLES ASSEMBLY (ENSAMBLADO) | 320 | 22 | % | |||||
EJES TRACTIVOS, S.A. DE C.V. | REAR AXLES TRACTOR LINE (PIECES) | 565 | 92 | % | |||||
PISTONES MORESA, S.A. DE C.V. (SALTILLO) | PISTONS (PIECES) | 1,200 | 72 | % | |||||
PISTONES MORESA, S.A. DE C.V. (CELAYA) | PISTONS (PIECES) | 11,800 | 35 | % | |||||
MORESTANA, S.A. DE C.V. | TAPPETS (PIECES) | 14,238 | 51 | % | |||||
PISTONES MORESA, S.A. DE C.V. | PISTON PINS (PIECES) | 23,500 | 46 | % | |||||
ENGRANES CONICOS, S.A. DE C.V. | GEARS (SETS) | 933 | 91 | % | |||||
PRODUCTOS ESTAMPADOS DE MEXICO, S.A. DE C.V. | STAMPED (A) (STROKES) | 32,000 | 24 | % | |||||
VELCON, S.A. DE C.V. | CONSTANT VELOCITY JOINTS (PIECES) | 2,900 | 64 | % | |||||
TRANSMISIONES TSP, S.A DE C.V. | TRANSMISSIONS (MEDIUM & HEAVY TRANSMISSIONS) | 69 | 34 | % | |||||
TREMEC, S.A. DE C.V. | TRANSMISSIONS (LIGHT TRANSMISSIONS) | 282 | 57 | % | |||||
TREMEC, S.A. DE C.V. | TRANSMISSIONS (HEAVY DUTTY COMPOMENTS) | 2,267 | 55 | % | |||||
CARDANES, S.A. DE C.V. | PROPELLER SHAFTS ASSEMBLY (ENSAMBLE) (PIECES) | 585 | 50 | % | |||||
CARDANES, S.A. DE C.V. | PROPELLER SHAFTS TRACTOR LINE (PIECES) | 756 | 84 | % | |||||
HAYES WHEELS ACERO, S.A. DE C.V. | STEEL WHEELS (PIECES) | 6,100 | 38 | % | |||||
AUTOMETALES, S.A. DE .CV. | IRON FOUNDRY (TONS.) | 24 | 82 | % | |||||
TF VICTOR, S.A. DE C.V. | GASKETS, SEALS, MOTOR PARTS (PIECES) | 24,275 | 42 | % | |||||
FORJAS SPICER, S.A. DE C.V. | PRECISION FORGES (TONS.) | 50 | 72 | % | |||||
1 |
COATZACOALCOS, VER. | POLYSTYRENE (TONS) | 75,000 | 94 | % | ||||
2 |
XICOHTZINGO,TLAX. | POLYSTYRENE (TONS) | 75,000 | 63 | % | ||||
3 |
ALTAMIRA, TAMPS. (Dynasol) | SYNTHETIC RUBBER (TONS) | 84,000 | 99 | % | ||||
4 |
ALTAMIRA, TAMPS. (INSA) | SYNTHETIC RUBBER (TONS) | 96,000 | 82 | % | ||||
5 |
ALTAMIRA, TAMPS. (PARATEC) | SYNTHETIC RUBBER (TONS) | 24,000 | 57 | % | ||||
6 |
COATZACOALCOS, VER. | PHOSPHATE (TONS) | 100,000 | 100 | % | ||||
7 |
TULTITLAN, EDO. MEX. | PHOSPHATE (TONS) | 85,000 | 68 | % | ||||
8 |
LECHERIA, EDO. MEX. | PHOSPHATE (TONS) | 40,000 | 42 | % | ||||
9 |
ALTAMIRA, TAMPS. | CARBON BLACK (TONS) | 120,000 | 99 | % | ||||
10 |
OCOYOACAC, EDO. MEX. | ACRYLIC SHEET (TONS) | 7,740 | 100 | % | ||||
11 |
SAN LUIS POTOSI. S.L.P. | ACRYLIC SHEET (TONS) | 5,007 | 100 | % | ||||
12 |
LERMA, EDO. MEX. | MELAMINE LAMINATES (K M2) | 4,700 | 81 | % | ||||
13 |
ZITACUARO, MICH. | PARTICLE BOARD (K M2) | 10,270 | 100 | % |
OBSERVACIONES:
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE:DESC |
QUARTER:2 | YEAR: 2004 |
PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
ANNEX 9
PLANT OR CENTER |
ECONOMIC ACTIVITY |
PLANT CAPACITY (1) |
UTILIZATION % |
||||||
1 | MERIDA | MILL (ton/month) | 25,000 | 85 | % | ||||
2 | IRAPUATO | MILL (ton/month) | 12,000 | 15 | % | ||||
3 | PENINSULA | HOG (thousands) | 35 | 100 | % | ||||
4 | MÉRIDA | SLAUGHTER HOUSE | 222 | 90 | % | ||||
5 | PENJAMO | SLAUGHTER HOUSE | 125 | 100 | % | ||||
7 | MOCHIS (SANTA ROSA) | FRESH TOMATO PROCESSING (TONS/DAY IN 100 DAYS) | 3,000 | 6 | % | ||||
8 | TOMATO PRODUCTS IN TETRABRIK CONTAINER (MILLION OF CASES) | 6 | 93.0 | % | |||||
MOCHIS (LA CORONA) | CANNED VEGETABLES (TONS) | 72,567 | 40 | % | |||||
CANNED VEGETABLES (MILLIONS OF CASES) | 7 | 40 | % | ||||||
9 | MAZATLAN | TUNA (thousands boxes) | 2,500 | 74.0 | % | ||||
OAXACA | COFEE (TONS/MONTH) | 212.00 | 56.8 | % | |||||
10 | ROSEMEAD, CALIFORNIA | SALSA & CANNED VEGETABLES (thousands lb) | 166,226 | 23.0 | % | ||||
11 | |||||||||
12 |
24
www.desc.com.mx
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE:DESC |
QUARTER: 2 | YEAR: 2004 |
MAIN RAW MATERIALS
ANNEX 10 | CONSOLIDATED |
DOMESTIC |
MAIN SUPPLIERS |
FOREIGN |
MAIN SUPPLIERS |
DOM. SUBST. |
COST PRODUCTION % | |||||||
1 | LAMINATE | HYLSA, S. A. DE C.V. | STEEL | MC STEEL | NO | |||||||
2 | STEEL | INDUSTRIAS CH, S. A. | STEEL | MITSUBISHI | YES | |||||||
3 | ALUMINUM | NACOBRE | LAMINATE | NISHO OWAI | NO | |||||||
4 | COLOR PAINTS | P.P.G. INDUSTRIAS DE MEXICO, S. A. DE C.V. | STEEL | TOTH INDUSTRIES | NO | |||||||
5 | LAMINATE | AHMSA | AUTOMOTIVE PARTS | DANA CO. | NO | |||||||
6 | COLOR PAINTS | DUPONT DE MEXICO | FORGE | GSB FORJA | NO | |||||||
7 | RODAMIENTOS | KOYO DE MEXICO | LAMINATE | DAEWOO CORP. | NO | |||||||
8 | RODAMIENTOS | TIMKEM | ALUMINUM | REYNOLDS METAL | YES | |||||||
9 | LAMINATE | GENERAL MOTORS | RODAMIENTOS | THE TIMKEN CO. | NO | |||||||
10 | FORGE | THYSSEN PRECISION FORGE | NO | |||||||||
11 | ||||||||||||
12 | ||||||||||||
13 | STYRENE | PEMEX | STYRENE | STERLING, MITSUI | ||||||||
14 | BUTADIEN | BUTADIEN | SHELL, POLIMERI EUROPA, BP CHEMICAL, | |||||||||
15 | EQUISTAR, SABIC, REPSOL QUIMICA | |||||||||||
16 | METHANOL | PEMEX | METHANOL | CELANESE, PETROCEL | ||||||||
17 | TOLUEN | PEMEX | ||||||||||
18 | ||||||||||||
19 | NATURAL GAS | PEMEX | ||||||||||
20 | PHOSPHORIC ACID MERCANTILE |
RHODIA MEXICANA | ||||||||||
21 | PHOSPHORIC ACID (TECHNICAL) |
RHODIA MEXICANA | ||||||||||
22 | ACETOCYANOHIDRINE | BP CHEMICAL | ||||||||||
23 | ||||||||||||
24 | FRESH JALAPEÑO |
OWN PRODUCTION & FRESH MARKET ( VARIOUS ) | ||||||||||
25 | FRESH TOMATO |
OWN PRODUCTION & FRESH MARKET ( VARIOUS ) | ||||||||||
26 | FRESH TOMATILLO |
OWN PRODUCTION & FRESH MARKET ( VARIOUS ) | ||||||||||
27 | TETRABRIK CONTAINER |
TETRAPAK | ||||||||||
28 | METALLIC CAN |
GRUPO ZAPATA | ||||||||||
29 | METALLIC CAN |
ZAPATA ENVASES | ||||||||||
30 | CORN OIL | ARANCIA CORN PRODUCTS | ||||||||||
31 | SHIPPING CARTON |
CELULOSA Y CORRUGADOS | ||||||||||
32 | SHIPPING CARTON |
EMPAQUE DE CARTON TITAN | ||||||||||
33 | TOMATO PASTE | MORNING STAR | OK | |||||||||
34 | REYNOLD´S ITEMS | REYNOLDS | ||||||||||
35 | VARIOUS | |||||||||||
36 | METALLIC CAN |
ENVASES DE SINALOA | ||||||||||
37 | DIESEL | PEMEX | ||||||||||
38 | VEGETABLES | RIO FARMS | ||||||||||
39 | VEGETABLES | WOOLF ENTERPRISES | ||||||||||
40 | PACKAGING MATERIAL - GLASS | OWENS BROCKWAY | ||||||||||
41 | PACKAGING MATERIAL - CANS | PECHINEY PLASTIC | ||||||||||
42 | HOG GENETIC | PIC | ||||||||||
GRAIN | CARGILL | OK |
25
www.desc.com.mx
STOCK EXCHANGE CODE:DESC |
QUARTER: 2 | YEAR: 2004 |
Annex 11
SALES DISTRIBUTION BY PRODUCT
DOMESTIC SALES
MAIN PRODUCTS |
Total Production |
SALES |
MARKET SHARES (%) |
MAIN | ||||||||||
VOLUME |
AMOUNT |
VOLUME |
AMOUNT |
TRADEMARKS |
CUSTOMERS | |||||||||
AUTOPARTS SECTOR |
0 | 0 | 1,384,499 | |||||||||||
CHEMICAL SECTOR |
0 | 0 | 2,272,167 | |||||||||||
FOOD SECTOR |
0 | 0 | 1,445,463 | |||||||||||
REAL ESTATE SECTOR |
0 | 0 | 624,691 | |||||||||||
COMPANIES OF OTHER SERVICES |
0 | 0 | 6,934 | |||||||||||
TOTAL |
5,733,754 | |||||||||||||
SALES DISTRIBUTION BY PRODUCT
FOREIGN SALES
MAIN PRODUCTS |
Total Production |
SALES |
MARKET SHARES (%) |
MAIN | ||||||||||
VOLUME |
AMOUNT |
VOLUME |
AMOUNT |
TRADEMARKS |
CUSTOMERS | |||||||||
AUTOPARTS SECTOR |
0 | 0 | 2,858,922 | |||||||||||
CHEMICAL SECTOR |
0 | 0 | 1,791,182 | |||||||||||
FOOD SECTOR |
0 | 0 | 656,035 | |||||||||||
TOTAL |
5,306,140 | |||||||||||||
26
www.desc.com.mx
STOCK EXCHANGE CODE:DESC |
QUARTER: 2 | YEAR: 2004 |
INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK
CHARACTERISTICS OF THE SHARES
Series |
Nominal Value |
Valid Cupon |
Number of Shares |
Capital Stock (Thousands of Pesos) | ||||||||||||
Fixed Portion |
Variable Portion |
Mexican |
Unrestricted |
Fixed |
Variable | |||||||||||
A |
0.01300 | 20 | 1,166,108,597 | | 1,166,108,597 | 15,159 | ||||||||||
B |
0.01300 | 20 | 1,115,690,363 | | 1,115,690,363 | 14,504 | ||||||||||
| ||||||||||||||||
Total |
1,166,108,597 | 1,115,690,363 | | 2,281,798,960 | 15,159 | 14,504 | ||||||||||
TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE THE INFORMATION IS SENT:
2,281,798,960
SHARES PROPORTION BY:
CPO´S:
UNITS:
ADRS´s:
GDRS´s:
ADS´s:
GDS´s:
Repurchased own shares |
||||||
Market value of the share | ||||||
Series |
Number of Shares |
At repurchase |
At Quarter |
27
www.desc.com.mx
General Data of the Issuer: | ||
Corporate Name: | Desc, S.A. de C.V. | |
Address: | Paseo de los Tamarindos 400-B | |
City: | Bosques de las Lomas | |
Zip Code: | 5120 | |
State: | Mexico, D.F. | |
Telephone: | 52-61-80-00 | |
Fax: | 52-61-80-98 | |
E-Mail: | eloy.vega@desc.com.mx | |
Internet Address | www.desc.com.mx | |
Fiscal Data of the Issuer: | ||
RFC of Company: | DES9405182F1 | |
Domicile: | Paseo de los Tamarindos 400-B | |
City: | Bosques de las Lomas | |
Zip Code: | 5120 | |
State: | Mexico, D.F. | |
Responsibility for Payments: | ||
Name: | Lic. Jorge Francisco Padilla Ezeta | |
Address: | Paseo de los Tamarindos 400-B | |
City: | Bosques de las Lomas | |
Zip Code: | 5120 | |
State: | Mexico, D.F. | |
Telephone: | 52-61-80-00 | |
Fax: | 52-61-80-98 | |
E-Mail: | jorge.padilla@desc.com.mx | |
Data with respect to officers: | ||
Mexican Stock | ||
Exchange equivalent: | Chairman of the Board of Directors | |
Title at company: | Chairman and Chief Executive Officer | |
Name: | Mr. Fernando Senderos Mestre | |
Address: | Paseo de los Tamarindos 400-B | |
City: | Bosques de las Lomas | |
Zip Code: | 5120 | |
State: | Mexico, D.F. | |
Telephone: | 52-61-80-00 | |
Fax: | 52-61-80-98 | |
Mexican Stock | ||
Exchange equivalent: | General Manager | |
Title at company: | Chief Executive Corporate Area | |
Name: | Ing. Juan Marco Gutierrez Wanless | |
Address: | Paseo de los Tamarindos 400-B | |
City: | Bosques de las Lomas | |
Zip Code: | 5120 | |
State: | Mexico, D.F. | |
Telephone: | 52-61-80-00 | |
Fax: | 52-61-80-98 | |
E-Mail: | juan.gwanless@desc.com.mx | |
Mexican Stock | ||
Exchange equivalent: | Chief Financial Officer | |
Title at company: | Director of Finance | |
Name: | Lic. Arturo DAcosta Ruiz | |
Address: | Paseo de los Tamarindos 400-B | |
City: | Bosques de las Lomas | |
Zip Code: | 5120 | |
State: | Mexico, D.F. | |
Telephone: | 52-61-80-00 | |
Fax: | 52-61-80-98 | |
E-Mail: | arturo.dacosta@.desc.com.mx | |
Mexican Stock | ||
Exchange equivalent: | Officer in Charge of Sending Quarterly Financial Information | |
Title at company: | Corporate Manager of Financial Information | |
Name: | Lic. Jorge Francisco Padilla Ezeta | |
Address: | Paseo de los Tamarindos 400-B | |
City: | Bosques de las Lomas | |
Zip Code: | 5120 | |
State: | Mexico, D.F. | |
Telephone: | 52-61-80-00 | |
Fax: | 52-61-80-98 | |
E-Mail: | jorge.padilla@desc.com.mx | |
Mexican Stock | ||
Exchange equivalent: | Alternate Officer in Charge of Sending Quarterly Financial Information | |
Title at company: | Corporate Comptroller | |
Name: | Lic. Eduardo Philibert Garza | |
Address: | Paseo de los Tamarindos 400-B | |
City: | Bosques de las Lomas | |
Zip Code: | 5120 | |
State: | Mexico, D.F. | |
Telephone: | 52-61-80-00 | |
Fax: | 52-61-80-96 | |
E-Mail: | eduardo.philibert@desc.com.mx | |
Mexican Stock | ||
Exchange equivalent: | Officer Responsible for Legal Affairs | |
Title at company: | General Counsel | |
Name: | Lic. Ramon Estrada Rivera | |
Address: | Paseo de los Tamarindos 400-B | |
City: | Bosques de las Lomas | |
Zip Code: | 5120 | |
State: | Mexico, D.F. | |
Telephone: | 52-61-80-00 | |
Fax: | 52-61-80-97 | |
E-Mail: | ramon.estrada@desc.com.mx | |
Mexican Stock | ||
Exchange equivalent: | Secretary of the Board of Directors | |
Title at company: | Secretary of the Board of Directors | |
Name: | C.P. Ernesto Vega Velasco | |
Address: | Bosque de Ciruelos No. 130 Room 1203 | |
City: | Bosques de las Lomas | |
Zip Code: | 11700 | |
State: | Mexico, D.F. | |
Telephone: | 52-61-80-00 | |
Fax: | 52-61-80-60 | |
E-Mail: | ernesto.vega@desc.com.mx | |
Mexican Stock | ||
Exchange equivalent: | Officer in Charge of Providing Information to Investors | |
Title at company: | Corporate Manager of Financial Information | |
Name: | Lic. Jorge Francisco Padilla Ezeta | |
Address: | Paseo de los Tamarindos 400-B | |
City: | Bosques de las Lomas | |
Zip Code: | 5120 | |
State: | Mexico, D.F. | |
Telephone: | 52-61-80-00 | |
Fax: | 52-61-80-97 | |
E-Mail: | jorge.padilla@desc.com.mx | |
Mexican Stock | ||
Exchange equivalent: | Officer Authorized to Send Information via Emisnet | |
Title at company: | Chief Financial Officer | |
Name: | Lic. Arturo DAcosta Ruiz | |
Address: | Paseo de los Tamarindos 400-B | |
City: | Bosques de las Lomas | |
Zip Code: | 5120 | |
State: | Mexico, D.F. | |
Telephone: | 52-61-80-00 | |
Fax: | 52-61-80-98 | |
E-Mail: | arturo.dacosta@desc.com.mx | |
Mexican Stock | ||
Exchange equivalent: | Officer Authorized to Send Relevant Events via Emisnet | |
Title at company: | Secretary of the Board of Directors | |
Name: | C.P. Ernesto Vega Velasco | |
Address: | Bosque de Ciruelos No. 130 Room 1203 | |
City: | Bosques de las Lomas | |
Zip Code: | 11700 | |
State: | Mexico, D.F. | |
Telephone: | 52-61-80-00 | |
Fax: | 52-61-80-60 | |
E-Mail: | ernesto.vega@desc.com.mx |
28
www.desc.com.mx
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Desc, S.A. de C.V. | ||||
(Registrant) | ||||
Date: July 28, 2004 |
By |
/s/ Arturo DAcosta Ruiz | ||
(Signature) | ||||
Name: |
Arturo DAcosta Ruiz | |||
Title: |
Chief Financial Officer |