FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of May, 2003
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): ____
FOR IMMEDIATE RELEASE
NYSE: CGW
Santiago: CRISTALES
www.cristalchile.cl
CONTACT IN SANTIAGO:
Ricardo Dunner
Head of Investor Relations
PH: (562) 787-8855
FAX: (562) 787-8800
EMAIL: rdunner@cristalchile.cl
CHRISTALERIAS DE CHILE REPORTS ITS RESULTS FOR FIRST QUARTER 2003
Santiago, Chile (May 15th, 2003) -- Cristalerias de Chile S.A.("Cristalerias"),
a Chilean conglomerate and the largest producer of glass containers in Chile,
today announced its results for the first quarter ended March 31st, 2003. All
figures have been prepared according to Chilean GAAP and are stated in
constant Chilean Pesos and in US Dollars at Ch$731.56/US$1, the exchange rate
at the close of March 31st, 2003.
1Q03 HIGHLIGHTS (vs. 1Q02):
o Consolidated sales increased 13.3%
o Operating income up 10.8%
o EBITDA up 8.2%
o Non-operating loss decreased from a loss of Ch$5,077 million in 1Q02
to a loss of Ch$1,052 million in 1Q03.
o Net income reached Ch$4,321
million, compared to Ch$183 million reported in 1Q02.
o Earnings Per ADR reached US$0.28
CONSOLIDATED REVENUE
--------------------
(in Ch$ millions) IQ03 IQ02 1Q03vs.1Q02
---------------- ---- ---- -----------
TOTAL REVENUE 35,372 31,232 13.3%
Cristalchile iMlass containers 17,448 15,664 11.4%
Viria Santa Rita wine 14,928 13,235 12.8%
CIECSA media 4,355 3,787 15.0%
Adjustments 1,359 1,454 N/A
RELATED COMPANIES
Metropolis-Intercom (cable TV) 10,781 11,808 -8.7%
Envases CMF (plastic containers) 8,857 8,762 1.1%
FIRST QUARTER 2003 RESULTS
CONSOLIDATED RESULTS 1003 Revenue Breakdown
Operating Results CHART
During 1Q03, Cristalerias' total consolidated revenue reached Ch$35,372
million (US$48.4 million), a 13.3% increase versus 1Q02. The factors behind
this increase were improved sales in the glass container business (+11.4%),
Santa Rita (+12.8%) and CIECSA (+15.0%). Adjustments for factors such as
intercompany sales reached Ch$1,359 million during the quarter.
Consolidated operating income increased by 10.8% during the quarter, totaling
Ch$7,435 million (US$10.2 million). This includes Ch$5,850 million from the
glass container business, Ch$1,650 million from Santa Rita; partially offset
by a Ch$116 million operating loss from CIECSA.
During the quarter, Cristalerias' consolidated net income was Ch$4,321 million
(US$5.9 million), compared with Ch$183 million in 1Q02. In addition to a
higher operating income, the Company had a lower non-operating loss of
Ch$1,052 million (US$1.4 million) in 1Q03, compared to a non-operating loss of
Ch$5,077 million (US$6.9 million) in 1Q02. The latter is mainly explained by a
lower Ch$1,101 million net loss from subsidiaries that do not consolidate
(compared with a Ch$3,939 million net loss in 1Q02), mainly due to better
results at Metr6polis-Intercom and Rayen Cura. The net loss from subsidiaries
includes a Ch$1,034 million charge (Ch$1,041 million in 1Q02) corresponding to
goodwill amortization, which does not constitute cash flow. In addition, the
Company registered a Ch$1,662 million gain from foreign exchange differences
(Ch$10 million loss in 1Q02) as a consequence of the devaluation of the
Chilean Peso against the US Dollar during the quarter.
EBITDA: Operating cash generation increased by 8.2% from Ch$10,062 million
(US$13.8 million) in 1Q02 to Ch$10,886 million (US$14.9 million) in 1Q03.
EBITDA margin for the period was 30.8% (32.2% in 1Q02).
The following analysis explains Cristalerias' results based on individual
financial statements, as well as those of its main subsidiaries:
PACKAGING BUSINESS
Glass
The Company's glass packaging sales increased by 11.4% over 1Q02 reaching
Ch$17,448 million (US$23.9 million). Volume sales increased by 8.1%, totaling
58,267 tons. Wine bottle sales increased by 9.3%, mainly due to an increase in
export volumes. Beer bottle sales grew by 12.2%, due to the success of one-way
formats (250cc and 1,000cc). Soft-drink bottle sales increased by 7.3%, mainly
due to the launching of a new 237cc crown-top returnable format. Liquor bottle
sales increased by 45.6% mainly due to the launching of a 700cc format for a
new pisco brand. Containers for the food industry posted a 1.7% sales decrease
due to lower food exports to Latin America.
GLASS
-----
1Q03 1Q02 1Q03 vs. 1Q02
---- ---- -------------
Net Sales (in Ch$ millions) 17,448 15,664 11.4%
Wine 10,410 9,526 9.3%
Beer 3,029 2,700 12.2%
Soft Drinks 2,178 2,029 7.3%
Liquor 1,273 874 45.6%
Food 448 456 -1.7%
Pharmaceutical 110 79 40.3%
Volume in tons 58,267 53,922 8.1%
Operating income increased by 13.7%, totaling Ch$5,850 million (US$8.0
million). Operating margins increased from 32.8% in 1Q02 to 33.5% in 1Q03,
mainly due to increased sales.
Non-consolidated net earnings for 2003 include a non-operating loss of Ch$499
million (US$0.7 million), compared to a non-operating loss of Ch$4,112 million
(US$5.6 million) in 1Q02.
During the quarter the Company registered a higher income from Vina Santa
Rita, Envases CMF and Cristalchile Inversiones for its 40% stake in Rayen Cura
(Ch$130 million in 1Q03 vs. Ch$1,610 million loss in 1Q02); a higher income
from foreign exchange differences that totaled Ch$1,336 million (US$1.8
million); as well as a lower loss from Cristalchile Comunicaciones (Ch$1,505
million in 1Q03 vs. Ch$2,482 million in 1Q02).
EBITDA: Operating cash generation increased by 11.1%, from Ch$7,339 million
(US$10.0 million) in 1Q02 to Ch$8,151 million (US$11.1 million) in 1Q03.
EBITDA margin was 46.7% (46.9% in 1Q02).
Plastic
During the first quarter of 2003, Envases CMF posted a net profit of Ch$545
million (US$0.7 million) compared with Ch$292 million in 1Q02. Total sales
reached Ch$8,857 million (US$12.1 million) compared with Ch$8,762 million
(US$12.0 million). Volumes reached 6,092 tons (6,250 tons in 1Q02), while
prices increased by 3.8%. Operating income reached Ch$1,174 million (US$1.6
million), 38.9% over 1Q02, due to a more profitable sales mix as well as
improved production efficiencies.
EBITDA: Operating cash generation increased from Ch$1,908 million (US$2.6
million) in 1Q02 to Ch$2,302 million (US$3.1 million) in 1Q03. EBITDA margin
increased to 26.0% (21.8% in 1Q02).
WINE BUSINESS
During 1Q03, Santa Rita's consolidated sales totaled Ch$14,928 million
(US$20.4 million), a 12.8% increase over 1Q02. The Company's profits came in
at Ch$1,205 million (US$1.6 million), 14.2% over 1Q02, mainly due to improved
sales volume in the domestic and international markets coupled with an
improved non-operating result.
In the domestic market, Santa Rita increased volumes by 10.6%. Prices in this
market dropped by 5.6% in real terms as a result of strong competition. These
conditions led net sales in the domestic market to grow by 4.5%.
Sales in the export market rose by 18.3% due to a more favorable exchange
rate, and higher sales for the Canadian and Latin American markets. Total
volumes increased by 4.0%. During the quarter, exports of US$11.0 million
accounted for 54.5% of total revenues. The average price in Dollars per case
in the export market for Santa Rita was US$31.4 (US$29.6 in 1Q02), compared
with an industry average of US$23.5 (US$23.1 in 1Q02).
By markets, the export increase breakdown is as follows: Canada, 42.7%; Latin
America, 53.2%; Asia plus Africa, 128%; partially offset by lower sales to
Europe, -9.0% and USA, -5.3%.
SANTA RITA
----------
1Q03 1Q02 1Q03 vs.
1Q02
---- ---- -------
Net Sales in Ch$ millions 14,928 13,235 12.8%
Exports 8,137 6,881 18.3%
Domestic 6,266 5,999 4.5%
Others 525 355 47.9%
Volume
Exports (Th cases) 350 336 4.0%
Domestic Th liters 12,927 11,686 10.6%
Price per case - Export Mkt. (US$) 31.4 29.6 6.2%
Avg. Price per case - Domestic Mkt. (Ch$) 4,365 4,617 -5.6%
Operating income increased by 6.6% from Ch$1,548 million in 1Q02 to Ch$1,650
million in 1Q03. However, operating margin at 11.1% was below the 11.7% of
1Q02 mainly due to price reductions in the local market.
EBITDA: Operating cash generation increased by 6.3% to Ch$2,606 million
(US$3.6 million) during the quarter. EBITDA margin was 17.5% (18.5% in 1Q02).
MEDIA BUSINESS
Television Broadcasting, Financial Printed Press, and Other Media
During 1Q03, CIECSA reported a net loss of Ch$445 million (US$0.6 million)
compared to a net loss of Ch$261 million in 1Q02.
MEGA, CIECSA's main subsidiary, reached an average viewership share of 22.9%
during the quarter(1) (21.7% in 1Q02). Net sales increased by 15.0% over 1Q02
reaching Ch$4,329 million (US$5.9 million), as a higher viewership share has
resulted in higher revenues. MEGA had a Ch$90 million operating loss compared
to a Ch$43 million operating income in 1Q02, due to more internal productions
that increased costs. Therefore, Mega posted a Ch$248 million net loss,
compared with a net loss of Ch$194 million in 1Q02.
Media Subsidiaries
------------------
CGW
| |
98.2% | | 99.9%
| Cristalchile
CIECSA Comunicaciones
| | |
99.9% | 37.4% | | 50.0%
| | Cordillera
MEGA | Comunicaciones
| | 99.9%
| |
El Diario Metropolis-
Intercom
-------------
(1) Measured between 7:30AM and 1:30AM (i.e.: 18 hours daily) from Monday
through Sunday.
EBITDA: CIECSA's operating cash generation decreased from Ch$264 million
(US$0.4 million) in 1Q02 to Ch$76 million (US$0.1 million) in 1Q03. EBITDA
margin reached 1.8% (7.0% in 1Q02).
Cable Television
Cristalchile Comunicaciones S.A., (Cristalerias' wholly-owned subsidiary),
owner of 50% of Cordillera Comunicaciones Ltda. had a net loss of Ch$1,505
million (US$2.1 million) during the quarter compared to a net loss of Ch$2,482
million (US$3.4 million) recorded during 1Q02. Similarly, Cordillera
Comunicaciones Ltda. (owner of 99.9% of Metropolis-Intercom S.A.) had a net
loss of Ch$3,007 million (US$4.1 million), compared to a net loss of Ch$4,962
million (US$6.8 million) in the 1Q02. The aforementioned result includes a
goodwill amortization charge of Ch$1,034 million for the period (Ch$1,041
million in 1Q02).
In 1Q03 Metropolis-Intercom S.A. posted sales of Ch$10,781 million (US$14.7
million), compared with Ch$11,808 million (US$16.1 million) in 1Q02. At
operating level, the Company renegotiated programming costs with content
providers in order to mitigate the negative effect of the Chilean Peso
devaluation. The Company posted a net loss of Ch$1,973 million (US$2.7
million) compared to a net loss of Ch$3,921 million (US$5.4 million) in 1Q02.
The latter includes a Ch$3,204 million (US$4.4 million) depreciation charge
compared with a Ch$2,772 million (US$3.8 million) charge in 1Q02, mainly
coming from the HFC network acquired in July 2000. Metropolis-Intercom ended
the period with 240,119 basic subscribers, 2.9% lower than in 1Q02, due to
more disconnections as a consequence of the deteriorated local economic
situation. However, during 1Q03 basic subscribers increased by 0.6% with
respect to 4Q02. Internet customers reached 25,924, 86.9% over 1Q02.
METROPOLIS-INTERCOM
-------------------
03/31/03 12/31/02 1Q03 vs.
4Q02
-------- -------- --------
Basic Subscribers (1) 240,119 238,725 0.6%
Premium customers 33,761 31,840 6.0%
Internet customers 25,924 23,559 10.0%
Home Passed 1,129,885 1,128,247 N/A
1Q03 1Q02 1Q03 vs.
1Q02
-------- -------- --------
Sales Ch$ Million 10,781 11,808 -8.7%
Net Profit (loss) (Ch$ Million) (1,973) (3,921) 49.7%
(1) Includes Premium and Internet customers
#############
Cristalchile
CRISTALERIAS DE CHILE S.A.
CONSOLIDATED FINANCIAL STATEMENTS
(Restated for general price-level changes and expressed in millions of
Chilean Pesos as of March 31, 2003)
1 US Dollar = 731.56 Chilean Pesos
BALANCE SHEET
As of March 31
2003 2002
ASSETS MCh$ MCh$
Cash, time deposits, marketable securities 106,549 57,937
Receivables 38,546 34,440
Inventories, net 41,119 32,174
Other current assets 3,781 4,553
----------- -----------
TOTAL CURRENT ASSETS 189,996 129,105
----------- -----------
NET P.P.&E. 131,657 133,935
----------- -----------
Investment in related companies 108,430 111,386
Long-term receivables 9,867 9,280
Goodwill on investments 822 1,486
Accounts receivable, related companies 2 1
Others 27,011 22,884
----------- -----------
TOTAL OTHER ASSETS 146,131 145,037
----------- -----------
TOTAL ASSETS 467,783 408,077
----------- -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term & short-term debt 5,973 27,810
Dividends payable 79 70
Accounts and notes payable 27,083 16,104
Provisions, withholdings, income taxes 12,536 16,763
Advances from customers 2,534 1,736
----------- -----------
TOTAL CURRENT LIABILITIES 48,205 62,483
----------- -----------
Long-term bank liabilities and bonds payable 133,410 77,529
Miscellaneous creditors 1,215 1,692
Provisions and others 10,397 9,539
----------- -----------
TOTAL LONG-TERM LIABILITIES 145,023 88,760
----------- -----------
MINORITY INTEREST 37,469 35,937
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 237,087 220,897
----------- -----------
TOTAL LIAB. & SHAREHOLDERS' EQUITY 467,783 408,077
----------- -----------
STATEMENT OF INCOME
First Quarter
2003 2002
MCh$ MCh$
OPERATING RESULTS:
Net sales 35,372 31,232
Cost of sales (22,553) (19,660)
Selling and administrative expenses (5,384) (4,861)
----------- -----------
OPERATING INCOME 7,435 6,711
----------- -----------
NON-OPERATING RESULTS:
Cordillera Comunicaciones Ltda (1,504) (2,481)
Editorial Zig-Zag (31) (45)
Vina Los Vascos S.A. 109 34
Rayen Cura S.A.I.C. 167 (1,533)
Envases CMF 273 144
Ediciones Chiloe (115) (58)
----------- -----------
Others -- (1)
----------- -----------
Equity in net income related companies (1,101) (3,939)
Interest income (expense) net (1,209) (638)
Other nonrecurring income (net) (399) (183)
Amortization of goodwill (162) (145)
Price-level restatement 156 (162)
Exchange Rate Variations 1,662 (10)
----------- -----------
NON-OPERATING INCOME (1,052) (5,077)
----------- -----------
Income tax (1,521) (1,020)
Extraordinary Items
Minority interest (541) (431)
----------- -----------
NET INCOME 4,321 183
----------- -----------
Cristalchile
CRISTALERIAS DE CHILE S.A.
INDIVIDUAL FINANCIAL STATEMENTS
(Restated for general price-level changes and expressed in millions of
Chilean Pesos as of March 31, 2003)
1 US Dollar = 731.56 Chilean Pesos
BALANCE SHEET
As of March 31
2003 2002
ASSETS MCh$ MCh$
Cash, time deposits, marketable securities 82,702 35,347
Receivables 20,856 20,300
Inventories, net 5,944 6,281
Other current assets 1,726 2,397
----------- -----------
TOTAL CURRENT ASSETS 111,228 64,325
----------- -----------
NET P.P.&E. 72,896 74,263
----------- -----------
Investment in related companies 144,225 143,386
Long-term receivables 161 186
Goodwill on investments 2,011 2,179
Accounts receivable, related companies 22,598 21,254
Others 13,385 9,612
TOTAL OTHER ASSETS 182,381 176,617
----------- -----------
TOTAL ASSETS 366,505 315,205
----------- -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term & short-term debt 1,194 19,554
Dividends payable 77 70
Accounts and notes payable 7,775 5,190
Provisions, withholdings, income taxes 6,296 11,321
----------- -----------
TOTAL CURRENT LIABILITIES 15,342 36,134
----------- -----------
Long-term bank liabilities and bonds payable 105,391 48,630
Miscellaneous creditors 242 1,230
Provisions 6,063 7,165
Others 2,380 1,148
TOTAL LONG-TERM LIABILITIES 114,076 58,174
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 237,087 220,897
----------- -----------
TOTAL LIAB. & SHAREHOLDERS' EQUITY 366,505 315,205
----------- -----------
STATEMENT OF INCOME
First Quarter
2003 2002
MCh$ MCh$
OPERATING RESULTS:
Net sales 17,448 15,664
Cost of sales (10,363) (9,443)
Selling and administrative expenses (1,236) (1,077)
----------- ----------
OPERATING INCOME 5,850 5,144
----------- ----------
NON-OPERATING RESULTS:
ChristalChile Comunicaciones (1,505) (2,482)
S.A. Vina Santa Rita 652 571
Envases CMF S.A. 272 144
Ciecsa S.A. (437) (256)
Cristalchile Inversiones S.A. 130 (1,610)
Others (0) (1)
Equity in net income related companies (888) (3,635)
Interest income (expense) net (801) (219)
Other nonrecurring income (net) (141) (57)
Amortization of goodwill (43) (43)
Price-level restatement 38 88
Exchange Rate Variations 1,336 (246)
----------- ----------
NON-OPERATING INCOME (499) (4,112)
----------- ----------
Income tax (1,029) (850)
Amortization of negative goodwill -- --
Extraordinary Items -- --
----------- ----------
NET INCOME 4,321 182
----------- ----------
SALES VOLUME Th Tons Th Tons
Glass sales in Th tons 58.3 53.9
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.
Glassworks of Chile
(Registrant)
By: Benito Bustamante C.
--------------------
Benito Bustamante C.
Comptroller
Date: May 22, 2003