SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
August 19, 2004
Commission File Number 1-12752
Glassworks of Chile
(Translation of registrant's name into English)
Hendaya 60
Las Condes
Santiago, Chile
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F [X] 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 whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes [ ] No [X]
[LOGO]
NYSE: CGW
Santiago: CRISTALES
www.cristalchile.com
CONTACT IN SANTIAGO:
Ricardo Dunner
Head of Investor Relations
PH: (562) 787-8855
FAX: (562) 787-8800
EMAIL: ir@cristalchile.cl
FOR IMMEDIATE RELEASE
CRISTALERIAS DE CHILE REPORTS ITS RESULTS FOR
SECOND QUARTER AND FIRST HALF 2004
------------------------------------------------------------------------------
Santiago, Chile (August 19, 2004) - Cristalerias de Chile S.A.
("Cristalerias"), a Chilean conglomerate and the largest producer of glass
containers in Chile, today announced its results for the second quarter and
six-month periods ended June 30, 2004. All figures have been prepared
according to Chilean GAAP and are stated in constant Chilean Pesos and in US
Dollars at Ch$636.30/US$1, the exchange rate at the close of June 30, 2004.
2Q04 HIGHLIGHTS (vs. 2Q03):
o Consolidated sales increased 12.5%
o Operating income up 27.7%
o EBITDA up 22.2%
o Non-operating loss of Ch$2,812 million in 2Q04 compared to an Ch$8,755
million loss in 2Q03.
o Net income of Ch$4,559 million, compared to a Ch$1,389 million net loss
in 2Q03.
o Earnings per ADR reached US$0.34
YTD 2004 HIGHLIGHTS (vs. YTD 2003):
o Consolidated sales increased 4.4%
o Operating income up 0.8%
o EBITDA up 3.6%
o Non-operating loss of Ch$4,239 million compared to a loss of Ch$9,885
million in 2003.
o Net income reached Ch$7,125 million compared to Ch$2,958 million income
reported in 2003.
o Earnings Per ADR reached US$0.52
CONSOLIDATED REVENUE
2Q04 vs.
(in Ch$ millions) 2Q04 2Q03 2Q03 YTD04
----------------- ---- ---- ---- -----
TOTAL REVENUE 46,256 41,106 12.5% 80,299
Cristalchile (glass containers) 17,711 15,849 11.7% 33,298
Vina Santa Rita (wine) 22,212 19,540 13.7% 36,988
CIECSA (media) 7,808 7,167 8.9% 12,776
Adjustments 1,475 1,450 N/A 2,763
RELATED COMPANIES
Metropolis-Intercom (cable TV) 11,264 11,489 -2.0% 22,186
Envases CMF (plastic containers) 7,102 7,363 -3.6% 14,941
SECOND QUARTER 2004 RESULTS
CONSOLIDATED RESULTS
During 2Q04, Cristalerias' total consolidated revenue reached Ch$46,256
million (US$72.7 million), a 12.5% increase compared to 2Q03. The main factors
behind this increase were improved sales in Santa Rita (+13.7%), the glass
container business (+11.7%) and CIECSA (+8.9%). Adjustments for factors such
as intercompany sales reached Ch$1,475 million during the quarter.
2004 Revenue Breakdown
----------------------
Media 16%
Glass 37%
Wine 47%
Consolidated operating income increased by 27.7% during the quarter, totaling
Ch$10,290 million (US$16.2 million). This includes Ch$5,757 million from the
glass container business (Ch$3,744 million in 2Q03), Ch$3,076 million from
Santa Rita (Ch$3,325 million in 2Q03) and Ch$1,465 million from CIECSA (Ch$924
million in 2Q03).
During the quarter, Cristalerias net income reached Ch$4,559 million (US$7.2
million), compared to a Ch$1,389 million (US$2.2 million) net loss in 2Q03.
This is mainly explained by a lower non-operating loss, that passed from an
Ch$8,755 million (US$13.8 million) loss in 2Q03, to a Ch$2,812 million (US$
4.4 million) loss in 2Q04. The latter is mainly explained by a Ch$1,036
million (US$1.6 million) income from exchange differences in (Ch$6,148 million
loss in 2Q03); partially compensated by a lower Ch$1,456 million net loss from
subsidiaries that do not consolidate (Ch$812 million loss in 2Q03). The net
loss from subsidiaries includes a Ch$1,048 million charge (Ch$1,055 million
charge in 2Q03) corresponding to goodwill amortization, which does not
constitute cash flow.
EBITDA: Operating cash generation increased by 22.2% to reach Ch$14,229
million (US$22.4 million). EBITDA margin for 2Q04 was 30.8% (28.3% in 2Q03).
The following analysis explains Cristalerias' results based on individual
financial statements, as well as those of its main subsidiaries:
2
PACKAGING BUSINESS
Glass
Glass packaging sales increased by 11.7% during the quarter to Ch$17,711
million (US$27.8 million). Volume sales increased by 18.0%, totaling 63,538
tons. Wine bottle sales increased by 9.1%, mainly due an increase in export
volumes. Beer bottle sales increased by 52.2%, due to clients' inventory
build-up of returnable formats, partially compensated by lower sales of
one-way formats. Liquor bottle sales increased by 4.2%, due to higher
value-added sales of formats for pisco. Containers for the food industry
increased by 37.7% due to an increase in market share of formats offered by
the Company.
Soft-drink bottle sales decreased by 3.2%, mainly due to lower one-way formats
sales that have been affected by higher sales of the 237cc returnable bottle;
partially compensated by an increase in returnable formats sales, which in
turn are due to clients' inventory build-up in order to back up a sales
increase campaign in these formats.
GLASS
2Q04 vs.
2Q04 2Q03 2Q03
---- ---- ----
Net Sales (in Ch$ millions) 17,711 15,849 11.7%
Wine 11,866 10,879 9.1%
Beer 2,154 1,415 52.2%
Soft Drinks 1,654 1,708 -3.2%
Liquor 1,534 1,472 4.2%
Food 414 301 37.7%
Pharmaceutical 88 75 16.8%
Volume in tons 63,538 53,854 18.0%
Operating income increased by 53.8% to reach Ch$5,757 million (US$9.0
million). Operating margin reached 32.5% in 2Q04 (23.6% in 2Q03).
Net earnings for 2Q04 include a non-operating loss of Ch$121 million (US$0.2
million), compared to a Ch$5,427 million (US$8.5 million) non-operating loss
in 2Q03. The latter is mainly explained by a Ch$651 million income from
exchange differences in 2Q04, compared to a Ch$4,970 million loss in 2Q03; in
addition to a higher net income from subsidiaries, that reached Ch$531 million
in 2Q04 (Ch$195 million in 2Q03).
EBITDA: Operating cash generation increased by 38.0% to reach Ch$8,416 million
(US$13.2 million). EBITDA margin was 47.5% (38.5% in 2Q03).
3
Plastic
During 2Q04, Envases CMF posted a Ch$74 million (US$ 0.1 million) net loss,
compared to a Ch$670 million (US$ 1.1 million) net income in 2Q03. The latter
is mainly due to the non operating result, that registered a net loss of
Ch$123 million corresponding to price level restatements and exchange
differences in 2Q04, compared to a Ch$569 million income in 2Q03. Total sales
reached Ch$7,102 million (US$11.2 million), compared to Ch$7,363 million
(US$11.6 million) in 2Q03. Volumes decreased by 4.3%, reaching 4,713 tons,
while prices increased by 0.5%. Operating income increased by 7.2% to reach
Ch$451 million, due to higher operating efficiencies and a more profitable
sales mix.
EBITDA: Operating cash generation reached Ch$1,541 million (US$2.4 million) in
2Q04, compared to Ch$1,566 million (US$2.5 million) during 2Q03. EBITDA margin
reached 21.7% (21.3% in 2Q03).
4
WINE BUSINESS
During 2Q04, Santa Rita's consolidated sales totaled Ch$22,212 million
(US$34.9 million), 13.7% over 2Q03. The Company's profits came in at Ch$2,171
million (US$3.4 million), 30.0% over 2Q03, mainly due to an improved
non-operating result, that registered a Ch$378 million income from exchange
differences (Ch$1.040 million loss in 2Q03). The aforementioned was partially
compensated by a lower operating result.
In the domestic market, Santa Rita's volumes grew by 19.7% over 2Q03. Prices
increased by 11.0% in real terms. These conditions led net sales in the
domestic market to grow by 32.8% to Ch$10,748 (US$16.9 million).
Sales volume in the export market rose by 7.5% reaching US$17.1 million. In
real peso terms, sales decreased by 2.1% (due to the Chilean peso/US dollar
appreciation with respect to 2Q03) accounting for 48.9% of total revenues. The
average price in Dollars per case in the export market reached US$33.4
(US$33.2 in 2Q03), compared with an industry average of US$24.17 (US$23.93 in
2Q03).
SANTA RITA
2Q04 vs.
2Q04 2Q03 2Q03
---- ---- ----
Net Sales (in Ch$ millions) 22,212 19,540 13.7%
Domestic 10,748 8,092 32.8%
Exports 10,856 11,090 -2.1%
Others 608 358 69.8%
Volume
Exports (Th cases) 513 477 7.5%
Domestic (Th liters) 19,513 16,303 19.7%
Price per case - Export Mkt.( US$) 33.4 33.2 0.8%
Avg. price per case - Domestic Mkt. (Ch$) 4,959 4,464 11.0%
Operating income reached Ch$3,076 million (US$4.8 million), compared to
Ch$3,325 million (US$5.2 million) in 2Q03, due to higher costs of wine musts,
as well as a lower peso/US$ exchange rate that affected export returns.
Operating margin was 13.9% (17.0% in 2Q03).
EBITDA: Operating cash generation was Ch$4,138 million (US$6.5 million),
compared to Ch$4,345 million (US$6.8 million) in 2Q03. EBITDA margin was 18.6%
(22.2% in 2Q03).
5
MEDIA BUSINESS
Television Broadcasting, Financial Printed Press, and Other Media
During 2Q04, CIECSA reported a net income of Ch$1,227 million (US$1.9
million), compared to Ch$523 million (US$0.8 million) income in 2Q03.
Media Subsidiaries
CGW
| |
98.5% | | 99.9%
| |
CIECSA Cristalchile
| | Comunicaciones
| | |
99.9% | 37.4% | | 50.0%
| | |
MEGA | Cordillera
| Comunicaciones
| |
Diario | 99.9%
Financiero |
Metropolis-
Intercom
MEGA, CIECSA's main subsidiary, reached the first place in audience share with
an average viewership share of 25.5% in 2Q04 (22.9% in 2Q03)FN1. Net sales
increased by 6.2% in 2Q04 to reach Ch$7,442 million (US$11.7 million). MEGA
had a Ch$1,188 million (US$1.9 million) operating income, compared to Ch$904
million (US$1.4 million) in 2Q03. Therefore, MEGA posted a Ch$1,049 million
(US$1.6 million) net income, compared to Ch$460 million (US$0.7 million) in
2Q03.
EBITDA: CIECSA's operating cash generation reached Ch$1,665 million (US$2.6
million), 47.6% over 2Q03. EBITDA margin was 21.3% (15.7% in 2Q03).
Cable Television
Cristalchile Comunicaciones S.A. (Cristalerias' wholly-owned subsidiary),
owner of 50% of Cordillera Comunicaciones Ltda., had a net loss of Ch$1,890
million (US$3.0 million), compared to Ch$1,954 (US$3.1 million) in 2Q03.
Similarly, Cordillera Comunicaciones Ltda. (owner of 99% of
Metropolis-Intercom S.A.) had a net loss of Ch$3,643 million (US$5.7 million),
compared to Ch$3,908 million (US$6.1 million) in 2Q03. The aforementioned
result includes a goodwill amortization charge of Ch$1,048 million (Ch$1,055
million in 2Q03).
----------------
FN1 Measured between 6:30 and 1:30AM (i.e.: 19 hours daily) from Monday through
Sunday.
6
During 2Q04 Metropolis-Intercom S.A. posted a net loss of Ch$2,859 million
(US$4.5 million), flat compared with 2Q03. The Company posted sales of
Ch$11,264 million (US$17.7 million), compared to Ch$11,489 million in 2Q03.
EBITDA reached Ch$1,529 million (US$2.4 million), 16.8% over 2Q03. The latter
includes a Ch$3,750 million (US$5.9 million) depreciation charge, compared to
a Ch$3,449 million (US$5.4 million) charge in 2Q03, mainly coming from the HFC
network acquired in July 2000. The Company ended the period with 223,820 basic
subscribers (237,324 in 2Q03), 28,970 premium subscribers (33,440 in 2Q03) and
38,503 broad-band internet subscribers (29,286 in 2Q03). Internet Protocol
Telephone customers reached 9,255.
METROPOLIS-INTERCOM
2Q04 vs.
06/30/04 03/31/04 1Q04
-------- -------- ----
Basic Subscribers (1) 223,820 223,957 0%
Premium customers 28,970 35,514 -18.4%
Internet customers 38,503 36,883 4.4%
IP Telephony customers 9,255 6,376 45.2%
Home Passed 1,198,054 1,195,479 0.2%
2Q04 vs.
2Q04 2Q03 2Q03
---- ---- ----
Sales (Ch$ Million) 11,264 11,489 -2.0%
EBITDA (Ch$ Million) 1,529 1,309 16.8%
Net Income (Loss) (Ch$ Million) (2,859) (2,860) 0%
----------------
(1) Includes Premium and Internet customers.
7
FIRST HALF 2004 RESULTS
CONSOLIDATED RESULTS
The Company consolidates its results with those of Vina Santa Rita, CIECSA,
Cristalchile Comunicaciones, Cristalchile Inversiones and Apoger. During the
first half of 2004, Cristalerias' total consolidated revenue reached
Ch$80,299 million (US$126.2 million), a 4.4% increase over 2003. The main
factors behind this growth include improved sales in the wine (+6.7%), and
media (+10.3%) businesses; partially compensated by lower sales in the glass
container business (-0.7%).
YTD04 Revenue Breakdown
-----------------------
Media 15%
Glass 40%
Wine 45%
Consolidated operating income increased by 0.8% during the period, totaling
Ch$15,734 million (US$24.7 million). This includes Ch$10,135 million from the
glass container business (Ch$9,685 million in 2003), Ch$4,149 million from
Santa Rita (Ch$4,997 million in 2003) and Ch$1,417 million from CIECSA (Ch$808
million in 2003).
For the six-month period ended on June 30, 2003, Cristalerias' net income was
Ch$7,125 million (US$11.2 million), compared to Ch$2,958 million (US$4.6
million) in 2003. This is mainly explained by a lower non-operating loss, that
passed from a Ch$9,885 million (US$15.5 million) loss in 2003 to a Ch$4,239
million (US$6.7 million) loss in 2004. The latter is mainly explained by
income from exchange differences of Ch$2,418 million in 2004, compared to a
Ch$4,464 million loss in 2003. This is partially compensated by a higher net
loss from subsidiaries that do not consolidate, that reached Ch$3,166 million
(compared to a Ch$1,920 million loss in 2003), mainly due to lower results at
Metropolis-Intercom and Envases CMF. The net loss from subsidiaries includes
Ch$2,088 million charge (Ch$2,095 million charge in 2003) corresponding to
goodwill amortization, which does not constitute cash flow.
EBITDA: Operating cash generation increased by 3.6% to reach Ch$23,478 million
(US$36.9 million). EBITDA margin was 29.2% (29.5% in 2003).
The following analysis explains Cristalerias' results based on individual
financial statements, as well as those of its main subsidiaries:
8
PACKAGING BUSINESS
Glass
The Company had non-consolidated sales of Ch$33,298 million (US$52.3 million),
compared to Ch$33,524 million (Ch$52.7 million) in 2003. Volume sales
increased by 7.4%, reaching 120,393 tons. Wine bottle sales increased by 5.8%
during the period mainly due to higher bottled wine export volumes. Sales of
containers for the food industry increased due to an increase in market share
of formats offered by the Company.
Beer bottle sales decreased by 27.0%, mainly due to changes in clients'
pricing policy for beer sold in one-way formats, partially compensated by
higher sales of returnable formats. Liquor bottle sales decreased by 6.1%,
mainly because during 1H03 clients build-up inventories for a new pisco brand.
Soft drink bottle sales decreased by 4.6% due to lower sales of one-way
formats that have been affected by higher sales of the 237cc returnable
bottle.
GLASS
YTD04 vs.
YTD04 YTD03 YTD03
----- ----- -----
Net Sales (in Ch$ millions) 33,298 31,524 -0.7%
Wine 22,665 21,424 5.8%
Soft Drinks 3,736 3,914 -4.6%
Beer 3,275 4,483 -27.0%
Liquor 2,593 2,761 -6.1%
Food 876 755 16.0%
Pharmaceutical 153 187 -18.4%
Volume in tons 120,393 112,121 7.4%
Operating income increased by 4.6%, reaching $10,135 million (US$15.9
million), due to the increased sales volume and lower costs of sales,
partially compensated by a 7.5% decrease in average prices, mainly as a
consequence of the appreciation of the Chilean peso against the US dollar
during 1H04 when compared to 1H03. Operating margin was 30.4% (28.9% in 2003).
Net earnings for the period include a non-operating loss of Ch$1,449 million
(US$2.3 million), compared to a non-operating loss of Ch$5,986 million (US$9.4
million) in 2003. This is mainly explained by a Ch$1,391 million income from
exchange differences (Ch$3,617 million loss in 2003) and higher income from
Vina Santa Rita and CIECSA. The aforementioned was partially compensated by a
higher loss at Cristalchile Comunicaciones (50% owner of Metropolis-Intercom)
and a lower income from Envases CMF.
EBITDA: Operating cash generation increased by 7.2% to reach Ch$15,384 million
(US$24.2 million). EBITDA margin was 46.2% (42.8% in 2003).
9
Plastic
During the first half of 2004, Envases CMF posted a Ch$298 million (US$0.5
million) net income (Ch$1,226 million net income in 2003). This is mainly
explained by the non-operating result, that during 2003 registered as of this
date a net income from price level restatements and exchange differences of
Ch$435 million, compared to a Ch$205 million loss in 2004. Total sales reached
Ch$14,941 million (US$23.5 million), compared to Ch$16,375 million (US$25.7
million) in 2003. Volumes decreased by 4.1%, reaching 10,557 tons, due to
lower pre-forms exports and lower one-way formats sales; while prices
decreased by 5.1% influenced by a lower exchange rate. Operating income
reached Ch$1,191 million (US$1.9 million), compared to Ch$1,615 million
(US$2.5 million) income in 2003.
EBITDA: Operating cash generation was Ch$3,350 million (US$5.3 million),
compared to Ch$3,908 million (US$6.1 million) in 2003. EBITDA margin was 22.4%
(23.9% in 2003).
10
WINE BUSINESS
During the first half of 2004, Santa Rita's consolidated sales totaled
Ch$36,988 million (US$58.1 million), a 6.7% increase over 2003. The Company's
profits came in at Ch$3,553 million (US$5.6 million), 23.3% over 2003, due to
an improved non-operating result.
In the domestic market, Santa Rita's volumes increased by 9.5% over 2003.
Prices rose by 10.0% in real terms. These conditions led net sales in the
domestic market to grow by 20.4%, reaching Ch$17,383 million (US$27.3
million).
Sales volume in the export market grew by 6.6%, reaching US$30.0 million
(US$26.8 million in 2003), representing 50.2% of revenues. The average price
in dollars per case reached US$34.1 (US$32.4 in 2003), compared with an
industry average of US$24.3 (US$23.7 in 2003).
By markets, the export increase breakdown is as follows: Europe, +14.0%;
Asia+Africa, +42.0%; Latin America, +3.0%; partially offset by lower sales to
Canada, -15.9%; and USA, -1.8%.
SANTA RITA
YTD04 vs.
YTD04 YTD03 YTD03
----- ----- -----
Net Sales (in Ch$ millions) 36,988 34,663 6.7%
Domestic 17,383 14,440 20.4%
Export 18,571 19,334 -3.9%
Others 1,034 889 16.3%
Volume
Exports (Th cases) 881 827 6.6%
Domestic (Th liters) 31,996 29,230 9.5%
Price per case - Export Mkt.( US$) 34.1 32.4 5.0%
Avg. price per case - Domestic Mkt. (Ch$) 4,887 4,446 10.0%
Operating income reached Ch$4,149 million (US$6.5 million), compared to
Ch$4,997 million (US$7.9 million) in 2003, due to higher costs of musts, as
well as a lower peso/US$ exchange rate that affected export returns. Operating
margin reached 11.2% (14.4% in 2003).
EBITDA: Operating cash generation reached Ch$6,247 million (US$9.8 million),
compared to Ch$6,985 million (US$11.0 million) in 2003. EBITDA margin was
16.9% (20.2% in 2003).
11
MEDIA BUSINESS
Television Broadcasting, Financial Printed Press and Other Media
During 2004, CIECSA reported a net income of Ch$927 million (US$1.5 million)
compared to Ch$75 million (US$0.1 million) in 2003.
MEGA, CIECSA's main subsidiary, reached the first place in audience share with
an average viewership share of 25.4% during the period (22.7% in 2003)FN2. Net
sales increased by 8.3% reaching Ch$12,341 million (US$19.4 million), as
higher audience share has resulted in better sales. MEGA's operating income
increased by 38.2%, reaching Ch$1,125 million (US$1.8 million). Net income
reached Ch$811 million (US$1.3 million), compared to Ch$210 million (US$0.3
million) in 2003.
EBITDA: CIECSA's operating cash generation increased by 50.1%, reaching
Ch$1,809 million (US$2.8 million). EBITDA margin was 14.2% (10.4% in 2003).
Cable Television
Cristalchile Comunicaciones S.A. (Cristalerias wholly-owned subsidiary), owner
of 50.0% of Cordillera Comunicaciones Ltda. had a net loss of Ch$4,041 million
(US$6.4 million), compared to a Ch$3,468 million (US$5.5 million) net loss in
2003. Similarly, Cordillera Comunicaciones Ltda. (owner of 99.9% of
Metropolis-Intercom S.A.) posted a net loss of Ch$7,779 million (US$12.2
million), compared to a net loss of Ch$6,933 million (US$10.9 million) in
2003. The aforementioned result includes a goodwill amortization charge of
Ch$2,088 million (Ch$2,095 million in 2003).
During the first half of 2004 Metropolis-Intercom S.A. posted sales of
Ch$22,186 million (US$34.9 million), compared to Ch$22,408 million (US$35.2
million) in 2003. The Company posted a net loss of Ch$5,962 million (US$9.4
million), compared to a net loss of Ch$4,845 million (US$7.6 million) in 2003.
This lower result is mainly due to a Ch$775 million (US$1.2 million) one-time
expense that affects the Company's non-operating result. EBITDA reached
Ch$3,192 million (US$5.0 million), 8.4% over 2003. The latter includes a
depreciation charge of Ch$7,338 million (US$11.5 million), compared to
Ch$6,672 million (US$10.5 million) in 2003; mainly coming from the HFC network
acquired in July 2000. Metropolis-Intercom ended the period with 223,820 basic
subscribers (237,324 in 2003), 28,970 premium subscribers (33,440 in 2003),
38,503 broad-band internet subscribers (29,286 in 2003) and 9,255 IP Telephone
subscribers.
----------------
FN2 Measured between 6:30AM and 1:30AM (i.e.: 19 hours daily) from Monday
through Sunday.
12
METROPOLIS-INTERCOM
06/30/04 12/31/03 % Change
-------- -------- --------
Basic Subscribers (1) 223,820 231,925 -3.5%
Premium customers 28,970 31,499 -8.0%
Internet customers 38,503 34,462 11.7%
IP Telephony customers 9,255 3,639 154.3%
Home Passed 1,198,054 1,192,891 0.4%
YTD04 vs.
YTD04 YTD03 YTD03
----- ----- -----
Sales (Ch$ Million) 22,186 22,408 -1.0%
EBITDA (Ch$ Million) 3,192 2,944 8.4%
Net Profit (loss) (Ch$ Million) (5,962) (4,845) -23.0%
-----------------
(1) Includes Premium and Internet customers.
INVESTMENTS
Over the next decade, Cristalerias de Chile will invest US$210 MM in line with
a development plan that will allow the Company to duplicate its glass
packaging production capacity going from 300,000 to 600,000 annual tons.
The initiative was approved by the Company's Board, and contemplates its
materialization in successive stages according to market demand.
The first stage considers construction of a new glass plant, equipped with
four production lines and a furnace with capacity of 360 tpd, which will
increase current production capacity by 35%. This stage implies an investment
of approximately US$110 million, that will be financed with a combination of
internal resources and credits. Start-up of operations is scheduled for year
2006.
Next expansion stages imply adding seven production lines and two additional
furnaces with production capacities over 400 tpd.
It is worth mentioning that in line with Cristalerias de Chile's avant-garde
technological policy; the plant, production lines and furnaces will have state
of the art production and quality control systems, that will allow an
important productivity increase as well as efficiently satisfy customers'
growing requirements.
#############
This release may contain certain forward-looking statements (as that term is
used in U.S. securities laws) regarding anticipated results of operations,
financial condition, business operations or strategy of Cristalerias de Chile
or its consolidated subsidiaries. Forward-looking statements may be identified
by the use of words such as "anticipates," "believes," "expects," "predicts,"
"intends," "estimates," "should" or "may" or similar expressions relating to
statements that are not of historical facts. Such forward-looking statements
are believed to be reasonable, but are not guarantees of future performance.
Actual results could vary from our objectives or expectations due to many
factors including, among others, changes in consumer beverage preferences, new
technologies, a downturn in the Chilean wine industry, significant disruption
of the Chilean media market, the macroeconomic performance of Chile and the
behavior of Latin American markets more generally.
13
[LOGO]
CRISTALERIAS DE CHILE S.A.
CONSOLIDATED FINANCIAL STATEMENTS
(Restated for general price-level changes and expressed
in millions of Chilean Pesos as of June 30, 2004)
1 US Dollar = 636.30 Chilean Pesos
BALANCE SHEET
As of June 30
2004 2003
ASSETS MCh$ MCh$
------ ---- ----
Cash, time deposits, marketable securities 86,840 93,155
Receivables 52,390 42,117
Inventories, net 47,219 45,042
Other current assets 5,207 4,808
------- -------
TOTAL CURRENT ASSETS 191,656 185,122
------- -------
NET P.P.&E. 135,584 140,832
------- -------
Investment in related companies 100,764 107,216
Long-term receivables 9,200 9,538
Goodwill on investments 789 831
Accounts receivable, related companies 1,107 3
Others 24,351 26,097
------- -------
TOTAL OTHER ASSETS 136,210 143,686
------- -------
TOTAL ASSETS 463,450 469,639
------- -------
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current portion of long-term & short-term debt 4,656 6,035
Dividends payable 652 511
Accounts and notes payable 21,295 26,295
Provisions, withholdings, income taxes 21,460 19,463
Advances from customers 4,137 3,993
------- -------
TOTAL CURRENT LIABILITIES 52,199 56,297
------- -------
Long-term bank liabilities and bonds payable 125,446 132,465
Miscellaneous creditors 205 352
Provisions and others 11,070 12,088
------- -------
TOTAL LONG-TERM LIABILITIES 136,721 144,905
------- -------
MINORITY INTEREST 39,137 37,422
------- -------
TOTAL SHAREHOLDERS' EQUITY 235,392 231,014
------- -------
TOTAL LIAB. & SHAREHOLDERS' EQUITY 463,450 469,639
------- -------
STATEMENT OF INCOME
6 month period Second
ended June 30 quarter
------------- -------
2004 2003 2004 2003
OPERATING RESULTS: MCh$ MCh$ MCh$ MCh$
------------------ ---- ---- ---- ----
Net sales 80,299 76,938 46,256 41,106
Cost of sales (51,375) (49,280) (28,749) (26,457)
Selling and administrative expenses (13,190) (12,046) (7,217) (6,592)
------ ------ ------ ------
OPERATING INCOME 15,734 15,613 10,290 8,057
------ ------ ------ ------
NON-OPERATING RESULTS:
Cordillera Comunicaciones Ltda (4,021) (3,467) (1,881) (1,954)
Editorial Zig-Zag (42) (111) (92) (80)
Vina Los Vascos S.A. 271 399 222 290
Rayen Cura S.A.I.C. 548 743 311 575
Envases CMF 149 608 (37) 334
Ediciones Chiloe (71) (92) 22 24
Others (1) 0 (1) 0
--------------------------------------
Equity in net income related
companies (net) (3,166) (1,920) (1,456) (812)
Interest income (expense) net (2,349) (1,830) (1,261) (605)
Other nonrecurring income (net) (512) (684) (429) (280)
Amortization of goodwill (323) (320) (162) (155)
Price-level restatement (308) (668) (541) (754)
Exchange Rate Variations 2,418 (4,464) 1,036 (6,148)
------ ------ ------ ------
NON-OPERATING INCOME (4,239) (9,885) (2,812) (8,755)
------ ------ ------ ------
Income tax (2,670) (1,437) (1,855) 93
Extraordinary Items - - - -
Minority interest (1,700) (1,333) (1,065) (785)
------ ------ ------ ------
NET INCOME 7,125 2,958 4,559 -1,389
------ ------ ------ ------
14
[LOGO]
CRISTALERIAS DE CHILE S.A.
INDIVIDUAL FINANCIAL STATEMENTS
(Restated for general price-level changes and expressed
in millions of Chilean Pesos as of June 30, 2004)
1 US Dollar = 636.30 Chilean Pesos
BALANCE SHEET
As of June 30
2004 2003
ASSETS MCh$ MCh$
------ ---- ----
Cash, time deposits, marketable securities 73,530 75,975
Receivables 25,482 19,213
Inventories, net 6,979 6,683
Other current assets 2,310 1,973
------- -------
TOTAL CURRENT ASSETS 108,301 103,844
------- -------
NET P.P.&E. 75,449 80,614
------- -------
Investment in related companies 145,666 144,971
Long-term receivables 119 152
Goodwill on investments 1,821 1,992
Accounts receivable, related companies 22,008 21,995
Others 11,580 12,935
------- -------
TOTAL OTHER ASSETS 181,195 182,045
------- -------
TOTAL ASSETS 364,945 366,503
------- -------
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current portion of long-term debt 1,828 1,840
Dividends payable 652 510
Accounts and notes payable 6,609 8,412
Provisions, withholdings, income taxes 9,551 9,515
------- -------
TOTAL CURRENT LIABILITIES 18,640 20,276
------- -------
Long-term bank liabilities and bonds payable 101,576 105,118
Miscellaneous creditors 162 187
Provisions 6,418 7,578
Others 2,757 2,330
------- -------
TOTAL LONG-TERM LIABILITIES 110,913 115,212
------- -------
TOTAL SHAREHOLDERS' EQUITY 235,392 231,014
------- -------
TOTAL LIAB. & SHAREHOLDERS' EQUITY 364,945 366,503
------- -------
STATEMENT OF INCOME
6 month period Second
ended June 30 quarter
------------- -------
2004 2003 2004 2003
OPERATING RESULTS: MCh$ MCh$ MCh$ MCh$
------------------ ---- ---- ---- ----
Net sales 33,298 33,524 17,711 15,849
Cost of sales (20,400) (21,318) (10,516) (10,836)
General and administrative expenses (2,762) (2,521) (1,438) (1,269)
------ ------ ------ ------
OPERATING INCOME 10,135 9,685 5,757 3,744
------ ------ ------ ------
NON-OPERATING RESULTS:
CristalChile Comunicaciones (4,041) (3,468) (1,890) (1,954)
S.A. Vina Santa Rita 1,922 1,559 1,174 903
Envases CMF S.A. 149 608 (37) 334
Ciecsa S.A. 912 74 1,208 514
Cristalchile Inversiones S.A. 264 529 77 399
Others (2) (1) (2) (0)
--------------------------------------
Equity in net income related
companies (net) (794) (698) 531 195
Interest income (net) (1,487) (944) (843) (133)
Other nonrecurring income (net) (196) (251) (74) (108)
Amortization of goodwill (86) (86) (43) (43)
Price-level restatement (277) (389) (342) (367)
Exchange Rate Variations 1,391 (3,617) 651 (4,970)
------ ------ ------ ------
NON-OPERATING INCOME (1,449) (5,986) (121) (5,427)
------ ------ ------ ------
Income tax (1,561) (742) (1,077) 294
Amortization of negative goodwill - - - -
Extraordinary Items - - - -
------ ------ ------ ------
NET INCOME 7,125 2,958 4,559 (1,389)
------ ------ ------ ------
SALES VOLUME Th Tons Th Tons Th Tons Th Tons
------ ------ ------ ------
Glass sales in Th tons 120.4 112.1 63.5 53.9
------ ------ ------ ------
15
SIGNATURE
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.
GLASSWORKS OF CHILE
(Registrant)
By: /s/ Benito Bustamante C.
-----------------------------------
Benito Bustamante C.
Controller
Date: August 19, 2004