Constellation Brands, Inc. Enters into Glass Supply Contract with Vitro
Aug 15 14
Constellation Brands Inc. announced supply contract with Vitro (S.A.B. de C.V.). The company is currently in the process of finalizing a comprehensive, optimal glass sourcing strategy for its beer business. While the company has entered into a long-term glass supply agreement with Vitro (S.A.B. de C.V.) for approximately 25%-30% of its beer glass needs, this is just one part of the company's evolving glass strategy.
Vitro Plans To Sell Glass-Containers Business
Aug 14 14
Vitro, S.A.B. de C.V. (BMV:VITRO A) is exploring a possible sale of its glass-containers business for food and beverages, which represents almost half of its annual sales. In a filing with the Mexican stock exchange, Vitro said the possible sale would exclude cosmetics containers, as well as glass for the auto and construction industries. Vitro said a potential buyer, which it didn't identify, is conducting due diligence, and that any transaction would still require board, shareholder and other approvals.
Vitro, S.A.B. de C.V. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2013
Oct 28 13
Vitro, S.A.B. de C.V. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2013. For the quarter, the company reported EBIT of USD 71 million, EBITDA of USD 106 million, net income from continuing operations of USD 29 million and net income attributable to controlling interest of USD 31 million on net sales of USD 427 million compared to EBIT of USD 70 million, EBITDA of USD 105 million, net income from continuing operations of USD 39 million and net income attributable to controlling interest of USD 30 million on net sales of USD 455 million reported a year ago. Total net debt was USD 1,039 million compared to USD 957 million as at September 30, 2012. EBITDA increased 0.6% year on year, reflecting a good performance by the container division, counter weighting a lower result in the flat glass unit. As a continued effort to reduce even further the debt leverage, the company has been able to reduce the net debt by USD 83 million from USD 1,122 million in the previous quarter, supported by a healthy cash flow from operations of USD 100 million. Net sales declined 6.1% year-over-year, primarily reflecting the impact of adverse weather caused by hurricanes Manuel and Ingrid in Mexico during September and lower sales volumes, particularly in the Automotive and Beer segments at Flat Glass and Glass Containers, respectively. The recovery of an insurance claim coupled with lower legal expenses and the ongoing efforts of cost reduction positively impacted EBIT and EBTIDA, more than offsetting the negative effect of price erosion in some segments, rising natural gas prices and lower capacity utilization in its OEM business. Net free cash flow was USD 78 million compared to net free cash flow of USD 50 million reported a year ago, reflecting year-over-year reductions of USD 19 million in net interest paid and USD 9 million in working capital. Capex totaled USD 21 million compared to USD 18 million reported a year ago. Glass Containers represented 85% of total CapEx, which was mainly invested in manufacturing of molds used in production of glass containers, improvements and maintenance in various facilities. Flat Glass accounted for the remaining 15%, utilized for maintenance throughout its facilities, investments in racks and tooling for the auto glass segment and improvements in automotive and value-added products facilities as well. Income before tax was USD 42 million compared to USD 79 million reported a year ago. Operating income after other expenses, net, was USD 70 million compared to USD 70 million reported a year ago.
For the nine months, the company reported EBIT of USD 190 million, income before tax of USD 98 million, net income from continuing operations of USD 64 million and net income attributable to controlling interest of USD 64 million on net sales of USD 1,284 million compared to EBIT of USD 169 million, income before tax of USD 624 million, net income from continuing operations of USD 596 million and net income attributable to controlling interest of USD 530 million on net sales of USD 1,336 million reported a year ago. Operating income after other expenses, net, was USD 192 million compared to USD 117 million reported a year ago. Earnings per share were MXN 2.1 compared to 19.6 reported a year ago.