Vitro S.A.B. de C.V. has released its financial results for the third-quarter, and reports that its consolidated EBITDA increased 0.6 percent year-over-year for the third-quarter, totaling $106 million (U.S. dollars). The company attributes the positive result to “a good performance by the container division, counterweighting a lower result in the flat glass unit.”
Company officials also report that they’ve reduced Vitro’s net debt by $83 million to $1.0 billion from $1.1 billion in the second quarter. The reduction in debt resulted from “a healthy cash flow from operations of $100 million.”
As a result of the adverse weather in Mexico during the month of September, company officials report that consolidated net sales declined 6.1 percent during the quarter to $427 million; Vitro also attributes the drop to lower sales volumes.
“We have had several key accomplishments this year and continue to make progress on our strategy to further enhance operational and financial performance,” says CEO Adrian Sada
Cueva. “Further capitalizing on our existing growth opportunities, this quarter we regained additional OEM business that we lost during our debt restructuring process. At the same time, the prepayment of our $122.4 million mandatory convertible note in July has contributed to reduced financing costs and further strengthened our balance sheet.”
He adds, “EBITDA year-over-year comparisons benefited by the ongoing cost reduction initiatives throughout the organization as well as the recovery of an insurance claim and lower legal expenses, compensating for the impact of lower sales volumes during the third quarter and a higher natural gas cost. Results, however, were impacted by adverse weather conditions presented in a wide area of Mexico in the second half of September 2013, which negatively affected product distribution and sales.”
