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Vitro Reports 3Q’17 Results

16 of October of 2017

San Pedro Garza García, Nuevo León, Mexico, October 16, 2017 – Vitro, S.A.B. de C.V. (BMV: VITROA), hereinafter “Vitro” or the “Company”, a leading glass producer in North America, announced today its unaudited results for the third quarter of 2017 (“3Q’17”).

Third Quarter 2017 Highlights

  • Vitro announced solid results for the third quarter of 2017 reflecting the recent acquisitions in Flat Glass, Vitro Flat Glass “VFG” (formerly PPG´s Flat Glass Division) and Vitro Automotive (formerly PGW´s Original Equipment unit “OEM”), and supported by the good performance of the traditional  businesses in the Flat Glass division.
  • Consolidated Net Sales rose 153.5% year-over-year (“YoY”) during the third quarter of 2017 to US$556 million. This was led by the 208.4% YoY increase in revenues in the Flat Glass division to US$497 million for the quarter, notwithstanding the outage of two of Vitro’s flat glass furnaces in Carlisle, PA. Revenues for the Glass Container unit, were essentially flat at US$57 million, as a result of weak demand for machinery and equipment products (“FAMA”), partially offset by an increase in Fragrances and Pharmaceutical sales. Measured in Mexican pesos (MX$), Consolidated Net Sales increased 139.4% YoY to MX$9,984 million.
  • EBITDA increased 80.6% YoY to US$103 million during the third quarter of 2017.This reflects contributions of US$87 million in the Flat Glass division mainly from the recent acquisitions and US$17 million in the Glass Container division. In peso terms, Consolidated EBITDA increased 70.7% YoY to MX$1,845 million for the quarter.  

Commenting on Vitro’s performance and outlook, Mr. Adrián Sada Cueva, Chief Executive Officer, said “We reported a solid performance this quarter with top line and EBITDA growth mainly reflecting the positive impact from the recent acquisitions in the Flat Glass division along with organic growth.”

“Our results this year have also benefited from new Automotive OEM platforms in Mexico that have come into production over the past year.  Additionally, our recently opened plant for the Automotive Replacement Glass business is positively contributing to sales. On the other hand, we are beginning to experience increased competition in some of our segments as well as some slowdown in automotive demand in the United States. Vitro is committed to being a leader in this business and our commitment has been reflected in the acquisitions we have completed over the past two years as well as our stepped up capital investments to further enhance our competitiveness.” 

“This quarter was very challenging since we experienced an unexpected incident which resulted in a complete shut down and repairs at our facility in Carlisle, PA, which is an important plant of our Architectural Glass Business. We don’t expect a material impact in our results because we have an insurance policy that cover this kind of events. One furnace is already back in operation, while the second is expected to remain idle for an extended period of time as it requires more extensive repairs. To try to meet our customer demand, we are sourcing glass from other US-based plants and from third parties. We believe that with the recovered capacity of the line which is currently ramping up production our supply level will help us better serve the demand from our customers.  Our priority remains at bringing the capacity to the required level and on providing our customers with the quality products and service they have to come to expect from Vitro.”

Mr. Sada concluded, "We have a solid portfolio of companies and a committed management team poised and focused at continuing to deliver growth.  We will continue to support the development of innovative products and services for which we are recognized as well as investing responsibly & strategically to capture the organic growth opportunities that our industries present."

Commenting on the financial results, Mr. Claudio Del Valle, Chief Administrative and Financial Officer, noted: “We are pleased to have delivered another solid quarter with EBITDA growth of 81% driven by growth in the Flat Glass Division.  Acquisitions are fueling this growth, but we are also seeing generally good growth in our underlying businesses. As always, we remain committed to maintaining a healthy financial position and ending the quarter with over US$200 million in cash.  Our debt level has increased reflecting the recent acquisitions, but supported by free cash flow generation we are maintaining Debt/EBITDA ratios at healthy levels.” 

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Financial statements were prepared according to International Financial Reporting Standards (IFRS). The Peso figures included in the document are presented in nominal Pesos which could affect its comparability. Dollar figures are in nominal US dollars and are obtained by dividing nominal pesos for each month by the end of month fixed exchange rate published by Banco de México. In the case of the Balance Sheet, US dollar translations are made at the fixed exchange rate as of the end of the period. Certain amounts may not sum due to rounding. All figures and comparisons are in US dollar terms, unless otherwise stated, and may differ from the peso amounts due to the difference in exchange rates.

 

 

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