/raid1/www/Hosts/bankrupt/TCRLA_Public/040813.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, August 13, 2004, Vol. 5, Issue 160
Headlines
A R G E N T I N A
BANCO FRANCES: Losses Deepen in 2Q04
BANCO NACION: Past-Due Loans Down By 20% at End-June
CATAG S.R.L.: Court Declares Company Bankrupt
CHRISVAL S.R.L.: Court Favors Creditor's Bankruptcy Motion
CLAXSON INTERACTIVE: Reports Sustained Growth in Pay TV Division
CLUB KEN: Court Deems Bankruptcy Necessary
COINTEL: Ratings Withdrawn at Company's Request
COROL CLEAN: General Report Up for Court Submission
EDENOR: S&P Withdraws 'D' Ratings at the Company's Request
FARMACIA LUCERNA: Liquidating Assets to Pay Debts
FRANCO E HIJOS: Reorganization Concluded
HIERROS CAMPANA: Judge Approves Bankruptcy
INSTRUMENTAL GMG: Verification Period Nears End
MOLINOS RIO: Plunges Into Red in First Half of 2004
PRODUCAMP S.A.: Verification Deadline Nears
SARGELI: Trustee to Submit Individual Reports
SIDECO AMERICANA: Reports Wider 1H04 Net Loss
SKM S.R.L.: Enters Bankruptcy on Court Orders
TELEMONITOREO INTERNACIONAL: Court OKs Bankruptcy Request
B E L I Z E
PEBCO: $1.5M in Unpaid Taxes Lead To Closure
B E R M U D A
LORAL SPACE: Plaintiffs File Amended ERISA Violations Suit in NY
LORAL SPACE: Asks NY Court To Dismiss Securities Fraud Lawsuit
LORAL SPACE: Discovery Proceeds in NY Securities Lawsuit V. CEO
B R A Z I L
CEMIG: Petrobras to Acquire 40% Gasmig Stake
ELETROPAULO METROPOLITANA: Records BRL5.54M Loss in 1H04
USIMINAS: EBITDA Totals BRL1.3B in 2Q04
C H I L E
MADECO: Posts CLP4,732M Net Profit in 2Q04
C O S T A R I C A
BANCO DE SAN JOSE: Rumors Trigger Bank Run
D O M I N I C A N R E P U B L I C
* Moody's Affirms Outlook on DR's Foreign Currency Rating
M E X I C O
EMPRESAS ICA: S&P Ups Ratings, Removes From CreditWatch
GRUPO IUSACELL: Braces For Another Lawsuit
HYLSAMEX: Moody's Raises Hylsa's Debt Rating
V E N E Z U E L A
EDC: Returns to Profit in 2Q04 on Lower Interest Rates
- - - - - - - -
=================
A R G E N T I N A
=================
BANCO FRANCES: Losses Deepen in 2Q04
------------------------------------
BBVA Banco Frances SA (BFR), the Argentine unit of Spanish
financial holding company Banco Bilbao Vizcaya Argentaria SA,
saw its losses widen in the second-quarter of the year.
Dow Jones Business News reports that Banco Frances posted a net
loss of ARS14.196 million ($1=ARS3.025) in the quarter ended
June 30, compared with a net loss of ARS7.222 million in the
same year-ago period.
But in a press release, that bank said the widening in the net
loss was fully explained by a strong differential in "other
income/expenses." This item produced a loss of ARS117.238
million in the recent quarter, compared with a gain of
ARS265.564 million in the same period last year and a gain of
ARS127.893 million in the first quarter of this year.
The bank said the difference was mostly explained by
"extraordinary gains registered during the previous quarters."
Those quarters were periods of strong foreign exchange gains for
the Argentine peso.
On the hand, the bank reported a higher operating income of
ARS106.230 million in the recent quarter against ARS10.307 in
the prior quarter and from a loss of ARS142.640 million in the
second quarter of 2003.
This was fueled in large part by higher net financial income,
which rose to ARS156.491 million from ARS88.269 million in the
prior quarter and from a loss of ARS48.755 million a year
earlier.
"Higher net financial income was led by the consolidation of a
positive spread combined with an increasing intermediation
volume, as private sector loan portfolio continued to recover
during the present quarter," the bank said.
CONTACT: Maria Elena Siburu de Lopez Oliva
Investor Relations Manager
Phone: (5411) 4341 5035
E-mail: mesiburu@bancofrances.com.ar
Maria Adriana Arbelbide
Investor Relations
Phone: (5411) 4341 5036
E-mail: marbelbide@bancofrances.com.ar
BANCO NACION: Past-Due Loans Down By 20% at End-June
----------------------------------------------------
Felisa Miceli, president of Banco de la Nacion, revealed
Wednesday that the Argentine federal bank cut its past-due loans
by 20% to ARS3.8 billion (US$1.3bn) by end-June compared to the
same month in the previous year.
Nevertheless, Nacion's past-due loans still represent 51.3% of
its total loan portfolio, which is down from 62% a year ago, but
still about twice as high as the system average, reports
Business News Americas.
The bank grew total loans by 29% to ARS3.6 billion in the 12-
month period ending June 2004, according to local press reports.
CATAG S.R.L.: Court Declares Company Bankrupt
---------------------------------------------
Judge Herrera of Buenos Aires' Civil and Commercial Tribunal
declared local company Catag S.R.L. "Quiebra", relates La
Nacion. The court approved the bankruptcy petition filed by
Banco Rio de la Plata S.A., to whom the Company failed to pay
debts amounting to US$17,044.28.
The Company will undergo the bankruptcy process with Mr. Ruben
Sarafin as its trustee. Creditors are required to present proofs
of their claims to the trustee for verification before October
4, 2004.
Creditors who fail to have their claims authenticated by the
said date will be disqualified from the payments that will be
made after the Company's assets are liquidated at the end of the
bankruptcy process.
Dr. Gutierrez Huertas, Clerk No. 6, assists the court on the
case.
CONTACT: Catag S.R.L.
Avenida Cordoba 1523
Buenos Aires
Mr. Ruben Sarafin, Trustee
Tucuman 1657
Buenos Aires
CHRISVAL S.R.L.: Court Favors Creditor's Bankruptcy Motion
----------------------------------------------------------
Mr. Jose Odasso successfully sought for the bankruptcy of
Chrisval S.R.L. after Judge Ferrario of Buenos Aires Court No. 6
declared the Company "Quiebra," reports La Nacion.
As such, the food and beverage supplier, will now start the
bankruptcy process under the supervision of court-appointed
trustee Mr. Juan Carlos Vilanova. Creditors of the Company must
submit their proofs of claim to the trustee before October 26,
2004 for authentication. Failure to do so will mean a
disqualification from the payments that will be made after the
Company's assets are liquidated.
The creditor sought for the Company's bankruptcy after the
latter failed to pay debts amounting to US$7,760.40.
Dr. Mendez Sarmiento, Clerk No. 12, assists the court on the
case.
CONTACT: Chrisval S.R.L.
Bonorino 89
Buenos Aires
Mr. Juan Carlos Vilanova, Trustee
Hipolito Yrigoyen 1349
Buenos Aires
CLAXSON INTERACTIVE: Reports Sustained Growth in Pay TV Division
----------------------------------------------------------------
Claxson Interactive Group (XSON.OB), the multimedia
entertainment provider with leading brands for Spanish and
Portuguese speaking users in all the world, reported the results
for its Pay TV division, which ratify a tendency to sustained
growth in incomes, both from affiliated and advertising sales.
Mariano Varela, Sales and Marketing SVP, presented the
comparative May 2003-May 2004 results throughout Latin America
and Iberia, areas that registered an increase in the number of
subscribers of the group's channels of more than 20% in the case
of basic own and represented signals, and of more than 7% in the
case of Premium signals.
During this period, Claxson experienced growth in all its own
signals, particularly in Retro, which increased its distribution
more than 35%, and FTV, which increased its distribution more
than 28%. Adult channels Venus and Spice Clips also experienced
a significant growth: 20% and 23%, respectively.
Specifically as regards Mexico, the group's own channels-
excluding adults - grew 9% in that period, reaching more than
4.1 million aggregate subscribers in that territory. The
significant 56% growth experienced by Retro, classic movies and
series signal, during the period is worth noting. For their
part, adult channels grew 16% in the Mexican territory during
that same period.
In the case of Argentina, Claxson's own signals- excluding adult
channels - grew 16% during this period, with significant growth
for FTV, Retro and MuchMusic, reaching a total of aggregate
subscribers of more than 22.6 million households in that
territory. For their part, adult channels grew 11% during this
period, led by a strong growth of Playboy TV of more than 35%.
The total package of own and represented channels, including
adult channels, registered a growth of more than 28% during that
period in Argentina.
"These results confirm we are on the right track. As to
affiliated sales, we continue with an aggressive pan regional
distribution strategy, relying on and working jointly with cable
operators and distribution systems, which have favorably reacted
to our proposal. The entrance of Retro in Telef˘nica del Peru
and the growth of FTV in Peru, Mexico and Argentina are worth
noting, and so is the sustained growth of our adult signals",
said Varela. "As to advertising income, there's also a
favorable tendency, supported by a sustained increase in the
incomes deriving from non-traditional advertising projects, such
as Sprite Teve and FTV Beach, and the greater effort we are
making for pan regional agreements".
Incomes from the advertising sales area registered a significant
growth in the period from May 2003 to May 2004. As to
advertising incomes in Argentina, they increased almost 40% vis-
-vis May 2003, while at the pan regional level advertising
incomes increased 57% in comparison to May 2003.
Claxson (XSON.OB) is a multimedia company providing branded
entertainment content targeted to Spanish and Portuguese
speakers around the world. Claxson has a portfolio of popular
entertainment brands that are distributed over multiple
platforms through its assets in pay television, broadcast
television, radio and the Internet. Headquartered in Buenos
Aires, Argentina, and Miami, Florida, Claxson has a presence in
all key Ibero-American countries, including without limitation,
Argentina, Mexico, Chile, Brazil, Spain, Portugal and the United
States. Claxson's main shareholders are the Cisneros Group of
Companies and funds affiliated with Hicks, Muse, Tate & Furst
Inc.
CONTACT: Ms. Veronica Barbera
Communications Department
Claxson
4546-8805
vbarbera@claxson.com
CLUB KEN: Court Deems Bankruptcy Necessary
------------------------------------------
Buenos Aires-based footwear company Club Ken S.R.L., which was
undergoing reorganization, entered bankruptcy on orders from
Court No. 23 of the city's Civil and Commercial Tribunal. The
trustee assigned on the case will conduct the credit
verification process "por via incidental."
CONTACT: Club Ken S.R.L.
Buenos Aires
COINTEL: Ratings Withdrawn at Company's Request
-----------------------------------------------
Standard & Poor's Ratings Services withdrew its 'CCC-' local and
foreign currency corporate credit ratings on Compania
Internacional de Telecomunicaciones S.A. (COINTEL) following the
payment of all of COINTEL's financial debt maturities with third
parties in early August 2004.
ANALYSTS: Ivana Recalde, Buenos Aires (54) 114-891-2127
Marta Castelli, Buenos Aires (54) 114-891-2128
COROL CLEAN: General Report Up for Court Submission
---------------------------------------------------
The general report on the Corol Clean S.A. bankruptcy will be
submitted on Monday, August 16, 2004. Court-appointed trustee,
Mr. Carlos Alberto Bavio, will prepare this report from the
Company's accounting and business records.
Court No. 22 of Buenos Aires' Civil and Commercial Tribunal
handles this case, which will culminate with the liquidation of
the Company's assets.
CONTACT: Mr. Carlos Alberto Bavio, Trustee
Pieres 161
Buenos Aires
EDENOR: S&P Withdraws 'D' Ratings at the Company's Request
----------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'D' corporate
credit rating on Argentina-based Empresa Distribuidora de
EnergĦa Norte S.A. (Edenor) at the company's request. The 'D'
ratings on the company's US$250 million floating-rate notes and
US$140 million Gain Financial Trust Notes due 2005 (Gain notes)
are also withdrawn.
The Gain notes were issued by an Argentine trust specifically
established to acquire a note issued by Edenor and to act as the
direct beneficiary of the Overseas Private Investment Corp.
(OPIC) political risk insurance. The trust's assets consist
primarily of the Edenor note and the issuer's right under the
OPIC insurance agreement. The insurance will provide coverage of
US$140 million on the principal payments on the notes. The
policy does not cover interest payments or the risk of
devaluation of the local currency against the dollar, which is
borne by Edenor and is incorporated in its issuer credit rating.
OPIC is not rated by Standard & Poor's; however, the full faith
and credit of the U.S. government ('AAA') is pledged to secure
the full payment by OPIC of its obligations under the insurance
policy.
Edenor is Argentina's largest electricity distribution company,
serving approximately 2.3 million customers in the northwestern
half of greater Buenos Aires and the northern portion of the
city of Buenos Aires.
ANALYSTS: Maria Sol Ventura, Buenos Aires (54) 11-4891-2114
Sergio Fuentes, Buenos Aires (54) 114-891-2131
Marta Castelli, Buenos Aires (54) 114-891-2128
FARMACIA LUCERNA: Liquidating Assets to Pay Debts
-------------------------------------------------
Buenos Aires-based Farmacia Lucerna S.C.S. will begin
liquidating its assets following the bankruptcy order issued by
Court No. 4 of the city's Civil and Commercial Tribunal.
The ruling places the company under the supervision of court-
appointed trustee, Mr. Gustavo Alejandro Pagliere. The trustee
will verify creditors' proofs of claims until September 15,
2004.
Clerk No. 7 assists the court on this case, which will end with
the disposal of company assets to repay its debts.
CONTACT: Mr. Gustavo Alejandro Pagliere, Trustee
Tucuman 1424
Buenos Aires
FRANCO E HIJOS: Reorganization Concluded
----------------------------------------
The settlement plan proposed by Franco e Hijos S.R.L. for its
creditors acquired the number of votes necessary for
confirmation. As such, the plan has been endorsed by the court
and will now be implemented by the company.
CONTACT: Franco e Hijos S.R.L.
Buenos Aires
HIERROS CAMPANA: Judge Approves Bankruptcy
------------------------------------------
Hierros Campana S.A. was declared bankrupt after Court No. 19 of
Buenos Aires' Civil and Commercial Tribunal endorsed the
petition of Marby S.A. for the company's liquidation. Argentine
daily La Nacion reports that the creditor has claims totaling
US$8,674 against the Company.
CONTACT: Hierros Campana S.A.
Belgrano 634
Buenos Aires
INSTRUMENTAL GMG: Verification Period Nears End
-----------------------------------------------
Creditors of bankrupt Instrumental GMG are required to submit
proofs of the Company's indebtedness before the verification
period closes on Monday, August 16, 2004. All claims should be
forwarded to the court-appointed trustee, Mr. Miguel A.
Franqueiro.
Court No. 6 of Buenos Aires' Civil and Commercial Tribunal,
assisted by Clerk No. 11, has jurisdiction over this case.
CONTACT: Mr. Miguel A. Franqueiro, Trustee
Corrientes 534
Buenos Aires
MOLINOS RIO: Plunges Into Red in First Half of 2004
---------------------------------------------------
Molinos Rio de la Plata SA (MOLI.BA), a leading manufacturer of
branded food products in Argentina, revealed a net loss of
ARS11.7 million in the first half of the year reversing a net
profit of ARS27.6 million in the previous year.
According to Dow Jones Business News, the Company blames last
semester's negative performance on the weakness in its sunflower
oil business.
Operating profit fell to ARS26.3 million from ARS47.1 million a
year earlier.
Molinos said sunflower grinding operations saw "very low
margins, resulting in reduced production of that grain in the
country," and the Company also faced higher competition for the
commodity.
Early this year, the Company announced it was investing US$80
million to triple production at a soy processing plant and build
its own port in Santa Fe province. Molinos said its soy
processing business is still expanding and showing improved
margins.
"It's worth pointing out that this area of expansion hasn't yet
deployed all of its potential, which is expected to occur in the
middle of next year," Molinos said, adding that mid-2005 is when
the Santa Fe soy processing plant will be fully operational.
Molinos said net assets as of the end of the second quarter
totaled ARS877.5 million.
CONTACT INFO: Molinos Rio de la Plata S.A.
Uruguay 4075 CP (B1644HKG)
Victoria
Pcia. de Buenos Aires
Argentina
Telephone: 54-11-4340-1100
Contacts:
Maria Soledad Kern
Investors Service
Tel: (0054)-(11)-4340-1592
E-mail: maria.soledad.kern@molinos.com.ar
PRODUCAMP S.A.: Verification Deadline Nears
-------------------------------------------
Ms. Graciela Esther Rea, court-appointed trustee for the
Producamp S.A. insolvency, is scheduled to close the
verification of claims on Monday, August 16, 2004. All creditors
must submit proof of the Company's indebtedness to the trustee
before the deadline to qualify for any post liquidation
payments.
CONTACT: Producamp S.A.
Aristobulo del Valle 233
Pehuajo
Ms. Graciela Esther Rea, Trustee
Monferrand 207
Trenque Lauquen
SARGELI: Trustee to Submit Individual Reports
---------------------------------------------
Mr. Eduardo Pedro Lavagnino, the court-appointed trustee for the
Sargeli S.R.L. bankruptcy, will submit individual reports from
the case on Monday, August 16, 2004. The individual reports are
culled from creditors' claims submitted during the verification
period.
Buenos Aires Court No. 24 will use these reports to finalize the
list of creditors eligible to receive post-liquidation payments.
CONTACT: Mr. Eduardo Pedro Lavagnino, Receiver
Florida 165
Buenos Aires
SIDECO AMERICANA: Reports Wider 1H04 Net Loss
---------------------------------------------
In a statement to Argentinean securities regulator CNV,
Argentine public services and infrastructure holding company
Sideco Americana reported a consolidated net loss of ARS24.1
million in the first half of the year.
The figure, according to Business News Americas, is greater than
the ARS10.6-million net loss in the same year-ago period.
For the period, net sales rose 2.3% to ARS372 million and
operating profit fell 20.4% to ARS6.76 million. Increased
operating costs and financial outlays impacted the bottom line,
says the report.
Sideco Americana recently obtained endorsement from a commercial
court judge on its out-of-court agreement to restructure US$125
million in debt. Under the proceeding, known in Spanish as
Acuerdo Preventivo Extrajudicial (APE), a Company must secure
two-thirds approval from creditors before it can submit its
offer to a court for legal clearance that would then make the
restructuring terms binding on all creditors.
In Sideco Americana's case, the Company secured about 91%
agreement from its creditors in December 2003 and submitted its
APE for legal approval in May. It is offering three options: a
cash payment worth 35% of the original amount, five-year secured
notes and 10-year unsecured notes.
Sideco's interests include engineering and construction firm
Iecsa, which operates in Argentina, Brazil and Chile;
environmental services (waste management) through Qualix in
Brazil; and highway concessions in Argentina (Autopistas del
Sol, Servicios Viales and Puentes de Litoral) and Brazil
(Rodovias das Colonias and Rodovia das Cataratas).
SKM S.R.L.: Enters Bankruptcy on Court Orders
---------------------------------------------
Skm S.R.L. enters bankruptcy after Court No. 13 of Buenos Aires'
Civil and Commercial Tribunal ordered the company's liquidation.
The order effectively transfers control of the company's assets
to the court-appointed trustee who will supervise the
liquidation proceedings.
Infobae reports that the court selected Mr. Joel Leib Kahane as
trustee. He will be verifying creditors' proofs of claims until
the end of the verification phase on September 24, 2004.
CONTACT: Mr. Joel Leib Kahane
Reconquista 715
Buenos Aires
TELEMONITOREO INTERNACIONAL: Court OKs Bankruptcy Request
---------------------------------------------------------
Buenos Aires-based Telemonitoreo International L.T.D. entered
bankruptcy after Judge Sala of the city's Civil and Commercial
Tribunal Court No. 14 approved a bankruptcy motion filed by Mr.
Jorge Valdez.
La Nacion reports that the Company's failure to pay US$12,253.93
in debt prompted the creditor to file the petition.
Working with Dr. Sarmiento Laspiur, the city's Clerk No. 23, the
Company assigned Ms. Adriana Elisi as trustee for the bankruptcy
process. Creditors are required to present their proofs of
claims to the trustee before September 10, 2004. The trustee's
duties include the authentication of the Company's debts and the
preparation of the individual and general reports.
The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payments will be based on
the results of the verification process.
CONTACT: Telemonitoreo International L.T.D.
Tucuman 540
Buenos Aires
Ms. Adriana Elisi, Trustee
Avenida Cabildo 2040
Buenos Aires
===========
B E L I Z E
===========
PEBCO: $1.5M in Unpaid Taxes Lead To Closure
--------------------------------------------
The Government of Belize completed the closure of local Pepsi
Cola bottler, Pebco, on Friday due to unpaid taxes, reports The
San Pedro Sun.
The government seized Pebco's assets after it failed to pay more
than US$800,000 by the end of July. The assets will be placed in
auction and the money collected will be used to pay Pebco's
debt. Former CEO Francis Gegg said that the government sued the
Company for a total of US$1.5 million "excise duty arrears."
Prior to the closure, Pebco had reported a 50 percent increase
in sales and outlined to seek more investors in the U.S. to
prop-up its finances.
=============
B E R M U D A
=============
LORAL SPACE: Plaintiffs File Amended ERISA Violations Suit in NY
----------------------------------------------------------------
Plaintiffs filed an amended class action against the Loral Space
& Communications Ltd. Savings Plan Administrative Committee, all
Loral directors, Richard J. Townsend and certain other Loral
officers and employees in the United States District Court for
the Southern District of New York.
The complaint alleges:
(1) that defendants violated Section 404 of the Employee
Retirement Income Security Act (ERISA), by breaching
their fiduciary duties to prudently and loyally manage
the assets of the Loral Savings Plan by including Loral
common stock as an investment alternative and by
providing matching contributions under the Plan in
Loral stock;
(2) that the director defendants violated Section 404 of
ERISA by breaching their fiduciary duties to monitor
the committee defendants and
(3) that defendants violated Sections 404 and 405 of ERISA
by failing to provide complete and accurate information
to Plan participants and beneficiaries.
The class of plaintiffs on whose behalf the lawsuit has been
asserted consists of all participants in or beneficiaries of the
Plan at any time between November 4, 1999 and the present and
whose accounts included investments in Loral stock. One other
similar complaint against the defendants with substantially
similar allegations has been filed, and the two cases have been
consolidated. (Class Action Reporter, Thursday, August 12, 2004,
Vol. 6, Issue 159)
CONTACT: LORAL SPACE & CM
600 Third Avenue
New York, NY 10016
Phone: (212) 697-1105
Fax: (212) 338-5662
Web Site: www.loral.com
LORAL SPACE: Asks NY Court To Dismiss Securities Fraud Lawsuit
--------------------------------------------------------------
Loral Space & Communication Ltd. officers Bernard Schwartz and
Richard J. Townsend asked the United States District Court for
the Southern District of New York to dismiss the securities
class action filed against them.
In November 2003, plaintiffs Tony Christ, individually and as
custodian for Brian and Katelyn Christ, Casey Crawford, Thomas
Orndorff and Marvin Rich, filed the suit, alleging that
defendants violated Section 10(b) of the Exchange Act and Rule
10b-5 promulgated thereunder, by making material misstatements
or failing to state material facts about Loral's financial
condition relating to the restatement in 2003 of the financial
statements for the second and third quarters of 2002 to correct
accounting for certain general and administrative expenses and
the alleged improper accounting for a satellite transaction with
APT Satellite Company Ltd.
The suit further alleges that each of the defendants is
secondarily liable for these alleged misstatements and omissions
under Section 20(a) of the Exchange Act as an alleged
"controlling person" of Loral. The class of plaintiffs on whose
behalf the lawsuit has been asserted consists of all buyers of
Loral common stock during the period from July 31, 2002 through
June 29, 2003, excluding the defendants and certain persons
related to or affiliated with them. (Class Action Reporter,
Thursday, August 12, 2004, Vol. 6, Issue 159)
CONTACT: LORAL SPACE & CM
600 Third Avenue
New York, NY 10016
Phone: (212) 697-1105
Fax: (212) 338-5662
Web Site: www.loral.com
LORAL SPACE: Discovery Proceeds in NY Securities Lawsuit V. CEO
---------------------------------------------------------------
Discovery commenced in the class action filed against Loral
Space & Communications, Ltd.'s Chief Executive Officer Bernard
Schwartz in the United States District Court for the Southern
District of New York.
Plaintiffs Robert Beleson and Harvey Matcovsky filed the suit,
alleging Mr. Schwartz violated Section 10(b) of the Exchange Act
and Rule10b-5 promulgated thereunder, by making material
misstatements or failing to state material facts about the
Company's financial condition in relation to the sale of assets
to Intelsat and Loral's Chapter 11 filing. The suit further
alleged that Mr. Schwartz is secondarily liable for these
alleged misstatements and omissions under Section 20(a) of the
Exchange Act as an alleged "controlling person" of Loral. The
class of plaintiffs on whose behalf the lawsuit has been
asserted consists of all buyers of Loral common stock during the
period from June 30, 2003 through July 15, 2003, excluding the
defendant and certain persons related to or affiliated with him.
In November 2003, three other complaints against Mr. Schwartz
with substantially similar allegations were consolidated into
the Beleson case. In February 2004, a motion to dismiss the
complaint in its entirety was denied by the court. Defendant
filed an answer in March 2004. (Class Action Reporter, Thursday,
August 12, 2004, Vol. 6, Issue 159)
CONTACT: LORAL SPACE & CM
600 Third Avenue
New York, NY 10016
Phone: (212) 697-1105
Fax: (212) 338-5662
Web Site: www.loral.com
===========
B R A Z I L
===========
CEMIG: Petrobras to Acquire 40% Gasmig Stake
--------------------------------------------
Companhia Energetica de Minas Gerais (CEMIG), a listed company
with shares traded on the stock exchanges of Sao Paulo, New York
and Madrid and a holder of public service concessions, in
accordance with its commitments to implement improved corporate
governance practices, hereby announces, pursuant to CVM
Instructions 358 and 358, of 3 and 22 January 2002, that it
intends to sign a document entitled "Association Agreement",
governing the formation and implementation of an association
between PETROBRAS, through its affiliated company Petrobras Gas
S.A - GASPETRO, and Companhia de Gas de Minas Gerais - GASMIG.
The Association consists of sale by Cemig to Gaspetro of shares
representing 40% (forty per cent) of the total capital of
Gasmig; a commitment on the part of Gaspetro and Cemig, as
stockholders of Gasmig, to inject funds necessary for the
development and expansion of the distribution network; and a
commitment on the part of Petrobras, through its affiliated
companies, to build and expand the gas pipelines which will
serve the distribution network of Gasmig. The Association will
be considered by the Boards of Directors of CEMIG and GASMIG
this Friday, August 13, 2004.
CONTACT: Companhia Energetica de Minas Gerais
Avenida Barbacena, 1.200 - Terreo
Belo Horizonte, 30190
Phone: (877) 248-4237
Email: rv@cemig.com.br
Web Site: www.cemig.com.br
ELETROPAULO METROPOLITANA: Records BRL5.54M Loss in 1H04
--------------------------------------------------------
Brazilian power distributor Eletropaulo Metropolitana slides to
a net loss of BRL5.54 million for the first half of 2004. A year
earlier, the company was still in the black with net profits
totaling BRL124.35 million.
Operating profit is down 65.6 percent from last years figure to
end at BRL203.51 million. However, the Company's net revenue
grew 13.5 percent to BRL3.31 billion and gross profits gained
11.7 percent to BRL434.01 million.
CONTACT: ELETROPAULO METROPOLITANA
Avenida Alfredo Egidio de Souza Aranha 100-B,
13 andar 04726-270 San Paulo
Brazil
Phone: +55-11-548-9461, +55 11 5696 3595
Fax: +55-11-546-1933
URL: http://www.eletropaulo.com.br
Contacts:
Luiz D. Travesso, Chairman and President
Orestes Gonzalves Jr., VP Finance/Investor Relations
USIMINAS: EBITDA Totals BRL1.3B in 2Q04
---------------------------------------
Usinas Siderurgicas de Minas Gerais S.A. - USIMINAS (BOVESPA:
USIM3, USIM5, USIM6; OTC: USNZY) announced Wednesday its second
quarter 2004 results. Operational and financial information of
the Company, except where otherwise indicated, is presented
based on consolidated data in Brazilian reais in accordance with
Corporate Law. All comparisons made in this release take into
consideration the same period in 2003, except when specified
differently.
HIGHLIGHTS:
Sales and Revenues
Within a context of favorable demand in both domestic and
foreign markets, Usiminas System sales volume reached 2 million
tonnes in 2Q04 and accumulated 3.9 million tonnes in the first
half of 2004, a 3% increase over 1H03. With better prices, net
sales revenues grew 31% in 2Q04 and 21% in 1H04, totaling R$ 5.1
billion in the period.
EBITDA
EBITDA totaled R$ 1.3 billion in 2Q04 and R$ 2.2 billion in
1H04, a 34% growth. EBITDA margin reached 46% in 2H04 against
39% registered in 1Q04.
The figure was positively affected by an increase in average
price and higher sales volume, which compensated raw materials
cost increases.
Debt
Strong cash generation in the first half enabled Usiminas to
lower total consolidated debt by R$ 873 million, practically
meeting its reduction goal for the year. The net consolidated
debt/EBITDA rate decreased from 2.0x in 1Q04 to 1.7x in 2Q04,
evidencing the Company's focus on strengthening its financial
position.
Net Income
Consolidated net income grew 13% and reached R$ 528 million in
2Q04. In the first half, consolidated net income totaled R$ 887
million, an 8% growth. The positive performance was the result
of the Company's good operational and sales performance, the
favorable situation in the steel industry, as well as its good
financial management in a period when adverse exchange
variations occurred.
Outlook
The outlook for the industry in the coming months indicates
maintenance of favorable conditions for direct and indirect
exports, reinforced by heated foreign demand and by a
competitive exchange rate. Based on the performance in 2Q04 and
the trends for the coming months, we estimate an expansion of
approximately 8% in domestic market flat-rolled steel demand in
2004, in keeping with the IBS (Brazilian Steel Institute).
HIGHLIGHTS:
Market, Production and Sales
Brazilian crude steel production reached 8.2 million tonnes in
2Q04 and totaled 16.2 million tonnes in the first half, 5.5%
above that of 1H03. Flat-rolled production during the first half
of 2004 increased 11.2% Domestic flat steel demand totaled 4.8
million tonnes in 1H04, 5.3% greater than the same period in
2003.
Export-oriented companies accounted for a large part of the
improved performance, raising the demand for value-added
products, such as galvanized and cold rolled steel products.
Brazilian flat rolled exports reached 1.1 million tonnes in
2Q04, with a total of 1.9 million tonnes in the half. Attractive
conditions in the international market (high demand and prices)
motivated the 31.3% growth in flat rolled shipments between 1H03
and 1H04.
The Usiminas System processed 2.2 million tonnes of crude steel
in 2Q04, maintaining the production of its mills at full
capacity.
Accumulated first half production grew 3% at 4.4 million tonnes
of crude steel.
Galvanized products and heavy plates are highlights in the first
half:
Good performance in the auto and electrical equipment segments
stimulated sales of galvanized products and the shipbuilding
segment demanded more heavy plate. Electrogalvanized shipments
totaled 128 thousand tonnes in 1H04, 25% above that in 1H03. On
the other hand, sales of heavy plate totaled 851 thousand
tonnes, an increase of 11% over 1H03.
In line with its strategic planning, parent company Usiminas
raised its ratio of sales in the domestic market from 81% in
1Q04 to 84% in 2Q04, guaranteeing supply to its domestic
customers. On the other hand, subsidiary Cosipa intensified
exports, taking advantage of favorable international market
conditions. In terms of the System, the level of 1.4 million
tonnes earmarked for the domestic market was maintained,
accounting for 73% of consolidated sales volume.
Flat rolled domestic market share for the Usiminas System in
1H04 was 56%, which maintained its leadership in the main
product segments. The System's exports grew 7% in 2Q04 and
reached 542 thousand tonnes.
Accumulated export shipments in the first half totaled 1.1
million tonnes, an 11% growth. Sales mix for export improved
with a greater share of heavy plate, electrogalvanized and hot
dip galvanized products and a decrease in slab shipments.
Exports accounted for 27% of sales volume in 2Q04:
Sales destined for export accounted for 27% of total sales
volume of the Usiminas System in 2Q04 and 28% of the total in
1H04. Geographic distribution of sales showed a decrease in
sales to China, re-directing products to other markets, such as
the USA, which is returning to its traditional volume levels.
Net Revenues
Consolidated net revenues grew 31% and reached R$ 2.8 billion in
2Q04. In the first half, growth was 21%, totaling R$ 5.1
billion. Net per-tonne revenues grfew from R$ 1,123 in 1H03 to
R$ 1,323 in 1H04, an increase of 18%.
Favorable revenue performance was a consequence of positive
factors, both domestically and abroad. The strong increase in
international prices and the appreciation of the dollar against
the real in 2Q04 expanded revenues in reais for exports. On the
domestic market, firm industrial demand from export-oriented
industries and agribusiness allowed for the reduction of the lag
between domestic and export prices.
Gross Profit
Gross profit reached R$ 1.3 billion in 2Q04 and totaled R$ 2.3
billion in 1H04, growing 73% and 38%, over the respective
periods in the previous year.
Gross margin jumped to 47% in 2Q04 from 36% in 2Q03, reflecting
the good sales performance, in spite of increases in costs of
raw materials in 2Q04. Average per-tonne cost increased 8% going
from R$ 689 in 1H03 to R$ 743 in 1H04.
In 2Q04 EBITDA and EBITDA margin were records highs:
Operating Profit
Sales expenses increased 67% in the quarter as a consequence of
the increase in exports. EBIT reached R$1.1 billion in 2Q04 and
R$ 1.9 billion in the first half. EBIT margin went from 33% in
1H03 to 37% in 1H04.
EBITDA reached a record high of R$ 1.3 billion in 2Q04, 69%
above that achieved in the same period of the previous year.
EBITDA margin was 46%, also a record high, as can be seen in the
graph below.
Financial Results and Debt
Net financial expenses went from R$ 111 million in 1H03 to R$
592 million in 1H04. The difference is basically explained by
exchange variations in both periods. In 1H03, the real
appreciated by 19%, approximately R$ 350 million. On the other
hand, in 1H04, the dollar appreciated by 8%, resulting in
negative net variations of R$ 267 million.
Effective debt reduction of the Company in 1H04 was R$ 873
million, with amortization of R$ 2.2 billion and takedowns of R$
1.4 billion. This practically achieved the annual goal in 2004.
Net Income
Consolidated net income reached R$ 528 million in 2Q04. In the
half, consolidated net income totaled R$ 887 million, an 8%
growth. The positive performance was the result of the Company's
good operational and sales performance, the favorable situation
in the steel industry and also its good financial management in
a period when adverse exchange variations occurred.
Investments
Funds earmarked for investment in the Usiminas System totaled R$
86 million in 2Q04 and R$ 127 million in the half. Outlays of
approximately R$ 300 million are forecast for the second half,
continuing its production improvement projects, maintenance and
small equipment repairs in both mills.
Outlook
The outlook for the industry in the coming months indicates
maintenance of favorable conditions for direct and indirect
exports, reinforced by heated foreign demand and by a
competitive exchange rate. Domestic steel demand should continue
to be driven by export-oriented sectors and the continued
recovery of the level of industrial activity in Brazil.
The industrial sector, which grew 7.7% in the first half of 2004
according to IBGE (Brazilian Geography and Statistics
Institute), has been showing confidence in its sustainable
expansion. The automotive segment, for example, expects to
produce up to 2.1 million vehicles in 2004, breaking the
historic record set in 1997. This volume, in fact, surpasses
ANFAVEA's (the Brazilian Association of Automobile
Manufacturers) initial production forecasts of 1.9 million
vehicles per year.
Based on the performance in 2Q04 and the trends for the coming
months, we estimate an expansion of approximately 8% in domestic
market flatrolled steel demand in 2004, according to the IBS
(Brazilian Steel Institute).
Usinas Siderurgicas de Minas Gerais S.A. - USIMINAS is an
integrated steel producer, with net sales of R$ 8.7 billion in
2003. The Usiminas System is made up mainly of USIMINAS and
Cosipa and has an annual capacity of 9.3 million tonnes of raw
steel and occupies a position of leadership in the domestic flat
steel market in the automobile industry, autoparts, agricultural
and highway machinery sectors, electrical and electronic
equipment segments and large-diameter pipe industry.
To view financial statements, please visit:
http://bankrupt.com/misc/Usiminas_2Q04.pdf
CONTACTS: Mr. Bruno Seno Fusaro
brunofusaro@usiminas.com.br
Tel: (55 31) 3499-8710
Mr. Paulo Esteves
paulo.esteves@thomsonir.com.br
Tel: (55 11) 3897-6466/6857
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C H I L E
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MADECO: Posts CLP4,732M Net Profit in 2Q04
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Madeco S.A. ("Madeco") (NYSE ticker: MAD) announced on August 6,
2004 its consolidated financial results in Chilean GAAP for the
quarter ended June 30th, 2004.
All figures are expressed in Chilean pesos as of June 30th, 2004
(the year-over-year Chilean CPI variation totaled 0.62%), US
dollar conversions expressed in this report are based on the
exchange rate effective on that same date (US$1.00 = Ch$636.30)
and UF1.00=Ch$17,014.95 as of June 30, 2004.
HIGHLIGHTS:
- The Company's revenues for the first half of 2004 amounted to
Ch$161,119 million, an increase of about 28.7% versus Ch$125,145
million generated in the same period last year. The Company's
consolidated EBITDA in the first half of 2004 (Ch$19,814
million) increased 66.6% versus last year (Ch$11,895 million),
primarily reflecting an improvement in the Wire and Cable, Brass
Mills and Flexible Packaging business units. For the first half
of 2004 net income of Madeco totaled Ch$4,732 million, a
turnaround of the Ch$5,110 million loss registered in the same
period last year.
- On May 1, 2004, the Company paid in total the remaining
portion of the Series C Bond (principal of UF 1,377,000 and
interest of UF 42,045), therefore the Series C Bond was fully
paid. In addition, on June 15, 2004 the Company paid a quota of
its Series A Bond (principal of UF94,985 de principal and
interest of UF 71,293). Therefore the Company's financial debt
as of June 30, 2004 amounted to Ch$147,375 million, a 20.8%
decrease versus Ch$186,042 million registered in the same period
last year.
- On July 1, 2004, the Company sold 138,956,755 shares in the
Santiago Stock Exchange (at Ch$41 per share), resulting in
proceeds to Madeco of approximately Ch$5,697 million (equal to
approximately US$9.0 million at the Ch$636.3 to US$1.00 Observed
Exchange Rate for June 30, 2004). The 139 million shares were
the last portion of the remained unsubscribed and unpaid shares
after completion of Madeco's capital increase, therefore the
3,853,534,135 million shares of the capital increase issued on
February 7, 2003 is fully subscribed and paid. As a result of
the sale, the total outstanding shares of Madeco on the date
hereof is 4,259,045,163 shares. Quinenco did not subscribe
additional shares and its interest in Madeco decreased from
55.2% to 53.4% as of the same date. Proceeds from the share
increase will be used to provide additional working capital for
the Company.
CONSOLIDATED INCOME STATEMENT HIGHLIGHTS (EXHIBITS 1 & 2)
REVENUES: Revenues generated in 2Q04 totaled Ch$86,290 million,
a 38.4% increase versus the same period last year, reflecting
higher revenues in the Wire and Cable, Brass Mills and Flexible
Packaging units, partially offset by lower sales of the Aluminum
Profiles unit.
GROSS INCOME AND GROSS MARGIN: Gross income amounted to
Ch$13,685 million, a 54.3% increase compared to Ch$8,868 million
registered last year. The better performance resulted from a
rise in the Wire and Cable (+335.5% increase in gross income),
Brass Mills and Flexible Packaging units results, which were
partially offset by a weaker performance in the Aluminum
Profiles unit versus last year. In addition, gross margin grew
1.7 percentage points to 15.9% in 2Q04.
OPERATING INCOME AND OPERATING MARGIN: The Company's operating
income amounted to Ch$8,102 million, an improvement compared to
Ch$3,405 million generated last year. The enhancement reflects
increased commercial activity, improved productivity levels and
the Company's efforts to maintain selling, general and
administrative expenses at low levels. SG&A expenses as a
percentage of net sales decreased from 8.8% to 6.5% due mainly
to the Company's policy of cost reducing.
NON-OPERATING RESULTS: The Company's non-operating loss in 2Q04
amounted to Ch$5,653 million versus the Ch$3,178 million
registered the same period last year.
- Price-level restatement and translation losses: in 2Q04
amounted to a Ch$2,093 million loss, compared to a Ch$1,269
million gain registered in 2Q03. In the second quarter 2004 the
Company registered a Ch$937 million loss and Ch$240 million loss
due to currency translation losses net of hedges from Brazil and
Argentina, respectively. In addition, the Company registered a
Ch$511 million loss of price-level restatement.
- Other non-operating expenses: amounted to Ch$746 million in
2Q04 versus Ch$1,068 million in 2Q03. In 2004, non-operating
expenses included Ch$460 million due to depreciation expenses of
assets in Argentina and Ch$78 million due to expenses associated
labor lawsuit in Argentina.
- Net financial expenses: amounted to Ch$2,401 million in 2Q04,
a decrease compared to Ch$3,147 million registered last year,
due mainly to the Company's financial restructuring that
resulted in both lower financial debt and a decline in interest
rates.
- Other non-operating income: amounted to Ch$98 million versus
Ch$288 million in 2Q03; this year the Company registered
recovery of custom tax in foreign subsidiaries (Ch$116 million).
NET INCOME: Net income before taxes in 2Q04 amounted to Ch$2,448
million, an improvement compared to Ch$227 million obtained last
year.
- The income tax in 2Q04 and 2Q03 amounted to a Ch$732 million
gain and Ch$199 million loss, respectively. In June 2004 the
Company received a tax recovery in Chile for a total amount of
Ch$1,519 million.
- The Company's minority interest primarily reflects the
proportion of net income/loss corresponding to the minority
shareholders of the Company's subsidiaries Alusa, Indeco and
Indalum. The Company's minority interest loss in 2Q04 totaled
Ch$163 million versus Ch$13 million in 2Q03.
In conclusion, the Company's net income after taxes in 2Q04
amounted to Ch$3,018 million a notable improvement versus a
Ch$17 million loss a year ago.
BUSINESS UNIT ANALYSIS (EXHIBITS 3 & 4)
The following discussion of the Company's four business units
focuses on year-over-year performance for the second quarter
period. The second quarter and first half results by business
units are included in the exhibits following the text of this
report.
Wire & Cable
Revenues in 2Q04 amounted to Ch$46,109 million, of which
Ch$7,002 million are due to sales of copper rod and Ch$39,107
million are sales of wire and cable products. The 55.7 %
increase in wire and cable sales were due mainly to a rise in
sales from the four countries where the Company maintained
operations. In the four countries, the Company increases its
wire and cable prices in order to better reflect the increase in
the main raw material costs.
In Chile volume sales increased 55.7%, partially explained by
sales to highway and infrastructure projects. In Brazil sales
went 47.4% up as a result of the country's economy growth. In
Argentina net sales more than duplicated due to the Company's
efforts to recovery its historic levels of market share and the
slowly increase in the country's demand. In Peru, the growth in
revenues (71.3%) reflects higher volume sales of 22.5% due
primarily to the economic growth in the country that resulted in
higher demand of cables and specifically the Company increased
its sales of telecom cables.
Cost of Goods Sold (COGS) amounted to Ch$24,657 million in 2Q03,
a 60.3% increase versus Ch$39,533 million registered this year.
The wire and cable division registered COGS for a total of
Ch$33,389 million, a 53.9% increase versus last year due mainly
to the Company's higher volume sales 23.5%, higher prices of its
main raw materials (in Chilean peso terms copper went 53.3% up
in 2Q04 versus 2Q03).
Gross margin of the copper rod division increased from 6.2% to
12.3% and gross margin of the wire and cable division also grew
from 13.6% to 14.6% in 2Q04. SG&A expenses totaled Ch$2,895
million in 2Q03 and Ch$2,885 million in 2Q04.
Operating income amounted to Ch$3,691 million in 2Q04 versus
Ch$731 million in 2Q03. In the copper rod division operating
margin grew from 5.3% to 11.9% and in the wire and cable
division, operating margin increased 5.1 percentage points from
2.2% to 7.3%.
Brass Mills
Revenues in 2Q04 amounted to Ch$20,958 million, a 44.8% increase
compared to Ch$14,471 million generated in 2Q03. The revenue
increase reflects higher volume sales of 5.4% and an increase in
average prices to reflect raw material price increases. In
Chile, volume sales went 3.1% up as a result of higher economic
activity in the country.
In Argentina, volume sale increased 3.1% due to the Company's
commercial efforts to regain market share. In addition, volume
sales of coin blank increased 28.9% as a consequence of exports
to Denmark and sales of tokens.
COGS totaled Ch$17,537 million in 2Q04 a 35.2% increase compared
to Ch$12,967 million due mainly to higher volume sales,
increased price of raw materials in Chilean peso terms (copper
price went 53.3% up, aluminum price grew 21.5% and zinc
increased 32.8%) and the revaluation of the Chilean peso against
the US dollar.
SG&A expenses were Ch$974 million in 2Q04 a 21.6% increase
versus Ch$801 million registered last year. SG&A expenses grew
in Chile as a result of higher uncollectible accounts and in
Argentina due in great part the Chilean peso revaluation. On the
other hand, SG&A expenses registered in the coin blank division
decreased 7.1% as a result of lower payroll and lower
uncollectible accounts.
Operating income more than tripled last year figures, from
Ch$703 million in 2Q03 to Ch$2,447 million in 2Q04. Operating
margin grew 6.8 percentage points, from 4.9% to 11.7%.
Flexible Packaging
Revenues for 2Q04 were Ch$11,799 million in 2Q04 a 4.4% increase
versus last year (Ch$11,305 million). The net sale growth
reflects an 8.0% volume sale increase due mainly to higher sales
in both Chile and Argentina as well as export sales, partially
offset by lower prices in Chile.
COGS reduced 0.5% from Ch$9,741 million to Ch$9,690 million due
mainly to lower price of raw material in Chilean peso terms and
productivity improvements, which were partially offset by higher
volume sales.
SG&A expenses totaled Ch$899 million in 2Q04, a 10.4% increase
versus last year, due mainly to higher commissions, third party
services and marketing expenses in Chile. In Argentina, SG&A
expenses increased as a result of higher salary expenses.
Operating income almost doubled versus last year, from Ch$750
million in 2Q03 to Ch$1,210 million in 2Q04. Operating margin
grew 3.6 percentage points, from 6.6% to 10.3%.
Aluminum Profiles
Net sales in 2Q04 were Ch$7,424 million, a 10.5% decrease versus
Ch$8,298 million generated last year. The revenue decline
reflects lower volume sales of 3.2% due mainly to the stagnation
in the demand during the first quarter 2004 and lower average
prices.
COGS totaled Ch$5,845 million in 2Q04 a 4.6% drop versus the
same period last year, due mainly to lower volume sales and
productivity improvements, which were partially offset by higher
aluminum prices in Chilean peso terms.
SG&A expenses amounted to Ch$825 million in 2Q04, a 13.4%
decline versus the previous year (Ch$953 million) due mainly to
indemnities paid in June 2003 for a total of Ch$97 million as a
consequence of the Company's restructuring.
Operating income totaled Ch$754 million in 2Q04 and Ch$1,221
million in 2Q03.
BALANCE SHEET ANALYSIS (EXHIBIT 7)
Assets: Total assets of the Company as of June 30, 2004,
amounted to Ch$355,443 million, an 8.7% decrease. The main
differences were:
- Current assets amounted to Ch$144,159 million a 0.6% increase
versus June 2003. The increased current assets reflects higher
accounts receivable (Ch$9,904 million) and higher inventories
(Ch$7,823 million), as a result of increased commercial activity
and higher raw material prices compared to 2003.
The aforementioned was partially offset by a drop in other
current assets after the use of available resources (Ch$9,072
million) to reduce liabilities and lower fixed assets held for
sale registered in the short term (Ch$4,623 million).
- Fixed assets totaled Ch$165,068 million in June 2004, a 14.1%
drop versus the same period last year, as a consequence of the
Chilean peso revaluation.
- Other assets were Ch$46,215 million in June 2004, a 14.5%
decline versus June 2003. The other assets reduction includes
the decline in the value of investments in foreign companies,
the amortizations of the period and the total amortization of
the Optel Argentina's goodwill in December 2003.
Liabilities: Total liabilities of the Company as of June 30,
2004 were Ch$182,897 million, an 18.0% decrease versus the same
period last year. The primary differences were:
- Bank Debt totaled Ch$113,877 million, a decline of about 12.4%
versus June 2003. The decrease in banks debt reflects lower
liabilities in the Company's subsidiaries expressed in Chilean
peso terms.
- Bonds were Ch$32,539 million in June 2004 versus Ch$60,408
million as of June 2003. The 46.1% reduction in bond debt are
the consequence of payments during 2003, on May 1, 2004 the
Company paid the series C Bond (principal of UF1,377,000 and
interest of UF42,045) and the payment made on June 15, 2004 of
the series A Bond (principal of UF91,719 and interest of
UF74,559).
Shareholders' Equity: Total Shareholders' Equity for the Company
was Ch$161,841 million as of June 2004, a 5.6% increase versus
June 2003. The main differences were:
- Paid-in capital amounted to Ch$189,471 million by June 2004,
which compares favorably versus Ch$168,382 million registered in
June 2003. On August 20, 2003 the Company sold in public bid in
the Santiago Stock Exchange a total of 1,157 million shares at
approximately Ch$28 each share, therefore Madeco received
roughly Ch$32,403 million.
- Share-premium were Ch$33,673 million, a 48.6% increase versus
last year due to the higher price obtained in the share issuance
of August 2004.
- Other reserves decreased from Ch$46,285 million in June 2003
to Ch$29,816 million in June 2004 due to the Chilean peso
revaluation between both period and the effect on shareholders'
equity after BT64
- Retained earnings were a Ch$91,119 million loss in June 2004,
a 8.5% increase versus last year; the retained loss increase
reflects the Company's losses registered in December 2003, which
was partially offset by gains in the period of Ch$4,732 million.
Madeco, formerly Manufacturas de Cobre MADECO S.A., was
incorporated in 1944 as an open corporation under the laws of
the Republic of Chile and currently has operations in Chile,
Brazil, Peru and Argentina. Madeco is a leading Latin American
manufacturer of finished and semi-finished non-ferrous products
based on copper, aluminum and related alloys, as well as a
manufacturer of flexible packaging products for use in the
packaging of mass consumer products such as food, snacks and
cosmetics products.
To view financial statements, please visit:
http://bankrupt.com/misc/Madeco_2Q04.pdf
CONTACT: Ms. Marisol Fernandez
Investor Relations
Voice : (56 2) 520-1390
Fax : (56 2) 520-1545
E-mail : mfl@madeco.cl
Web Site : www.madeco.cl
===================
C O S T A R I C A
===================
BANCO DE SAN JOSE: Rumors Trigger Bank Run
------------------------------------------
Rumors concerning alleged liquidity problems at Banco de San
Jose prompted clients to withdraw funds on Tuesday and
Wednesday.
The Associated Press says that reports about the banking
authorities' plans to intervene in the institution triggered the
withdrawals. However, both the government and bank officials
have discounted the rumors saying that the bank is in strong
financial condition.
Central Bank President Francisco de Paula Gutierrez said "There
is no reason for this. The bank has very solid reports." He
added, "I totally discount the validity of any rumor about the
problems with the liquidity of the group."
===================================
D O M I N I C A N R E P U B L I C
===================================
* Moody's Affirms Outlook on DR's Foreign Currency Rating
---------------------------------------------------------
Moody's Investors Service affirmed its negative outlook on the
Dominican Republic's B3 country ceiling rating for foreign debt.
According to the rating agency, the present rating reflects the
significant deterioration registered in the Dominican Republic's
credit fundamentals over a two-year period, as well as credit
risks now evident.
Dominican Republic is struggling to meet its external debt
obligations. Those difficulties led the country to solicit a
grace period on payments owed to the Paris Club of bilateral
lender countries during 2004.
In addition, the country had to use grace periods to pay coupons
on its international bonds several times this year, but Moody's
said it may not make future payments in time.
It said there were doubts over whether President-elect Leonel
Fernandez, who takes office on Aug. 16, will be able to make a
US$27 million coupon payment originally due on July 23.
"Although, to date, the government has been able and willing to
make full payment before the end of the standard 30-day grace
period, special circumstances have introduced additional
uncertainty, increasing the possibility of a default event,"
Moody's said.
===========
M E X I C O
===========
EMPRESAS ICA: S&P Ups Ratings, Removes From CreditWatch
-------------------------------------------------------
Standard & Poor's raised its long-term local and foreign
currency corporate credit ratings on Empresas ICA Sociedad
Controladora S.A. de C.V. (ICA) to 'B-' from 'CCC'. ICA's long-
term national scale rating has been revised to 'mxBB+' from
'mxB'. The outlook is negative. ICA's ratings have been removed
from CreditWatch, where they were placed on Feb.13, 2004.
"The ratings actions follow a review of ICA's operating and
financial prospects by Standard & Poor's, as well as the
completion of ICA's recent equity increase and the payment of
its subordinated convertible bond issued in 1994," said Standard
& Poor's credit analyst Jose Coballasi.
The negative outlook reflects the expectation that ICA's
liquidity will remain tight over the next 18 months and that
ratings could be lowered if the company's liquidity weakens
further. A positive rating action would need to be preceded by a
significant improvement in liquidity and a sustained improvement
in the company's financial and operating performance.
ANALYST: Jose Coballasi, Mexico City (52) 55-5081-4414
GRUPO IUSACELL: Braces For Another Lawsuit
------------------------------------------
Mexican mobile phone company Grupo Iusacell, S.A. de C.V., which
is controlled by Ricardo Salinas Pliego, is facing another
lawsuit, reports Mexico Analytica.
Elektra, which is also controlled by Salinas Pliego, filed a
suit against Iusacell claiming a debt of US$7 million. This
liability is guaranteed by the commercial contracts signed
between the two firms.
Iusacell was supposed to pay this money in October last year,
but failed to do so even though it had only acquired that
commitment two months earlier.
On Aug. 5, 2003, Iusacell took part in talks with Elektra and
Salinas de Rocha over areas within their stores to sell and
promote its telephone services. The cellular phone company
agreed to pay US$2.5 million for this service in four quotas.
Grupo Iusacell recently lost a bid to persuade a U.S. court to
throw out a lawsuit by holders of a US$150 million defaulted
bond issue. Judge Bernard Fried's July 21, 2004 ruling allows
holders of around 32% of the US$150 million Iusacell Celular
notes to pursue their claims in New York State Supreme Court,
including specific performance claims against Iusacell such as
the granting of first priority liens on a pari passu basis with
other lenders.
CONTACTS: Manatt, Phelps & Phillips
Alan M. Feld, 310-312-4153
afeld@manatt.com
or
Canales y Socios
Ernesto Canales Santos, +52-818 368-0190
ecanales@canalesysocios.com.mx
HYLSAMEX: Moody's Raises Hylsa's Debt Rating
--------------------------------------------
Mexican steelmaker Hylsa, S.A. de C.V.'s (Hylsa) improved
operating performance and progress in debt reduction prompted
Moody's Investors Services to raise the Company's senior
unsecured debt rating.
The following ratings were upgraded:
- US$139 million senior unsecured notes, due 2007, raised to B3
from Caa3.
- $161 million senior unsecured notes, due 2010, raised to B3
from Caa3.
- Senior unsecured issuer ratings raised to B3 from Caa3.
- Senior implied rating raised to B2 from Caa2.
The rating outlook is stable.
Hylsa's parent company Hylsamex (BMV: HLYSAMXB) reported US$124
million in net profit in the second quarter this year on higher
steel prices, up 182% from same-period 2003.
Still, the rating reflects the steel industry's "inherent"
volatility and its potential impact on Hylsa earnings and cash
flow, the rating agency said.
Hylsa is a wholly-owned steel making subsidiary of Hylsamex S.A.
de C.V., which will be entirely spun-off from its ultimate
parent company, Alfa S.A. de C.V., in February 2005. Through
June 30, 2004, Hylsa reported LTM revenues of about US$1.4
billion.
CONTACT: Hylsamex S.A. de C.V.
101 Ave Munich Cuauhtemoc
66452 San Nicolas de los Garza
Nuevo Leon
Mexico
Phone: +52 81 8865 2828
Fax: +52 81 8865 1210
Home Page: http://www.hylsamex.com.mx
Contact:
Engr. Dionisio Garza Medina, Chairman
Alejandro Elizondo Barragan, Chief Executive Engr
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V E N E Z U E L A
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EDC: Returns to Profit in 2Q04 on Lower Interest Rates
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Electricidad de Caracas (EDC), Venezuela's largest private
energy generator, reported a profit of VEB13 billion in the
second quarter of the year, reversing a loss of VEB6.6 billion
in the same period a year ago.
The recent quarter's good performance was partly due to lower
interest rates and finance expenses.
However, the Company, an affiliate of U.S. power firm AES Corp.,
posted a net loss of VEB69.8 billion in the first half of 2004,
compared with a loss of VEB39.1 billion in the same period of
last year.
EDC attributed the higher loss to lower operating revenues,
which in turn resulted from tariff hikes lagging behind
accumulated inflation.
First half EBITDA was VEB301 billion and debt was maintained at
levels close to US$725 million, the statement said.
EDC is a vertically integrated utility in Venezuela, operating
in electricity distribution, transmission, and generation in the
capital city of Caracas and its metropolitan area.
CONTACT: AES VENEZUELA
Avenida Rio de Janeiro
Qta. Tres Pinos
Chuao, VE-1061 Caracas, Venezuela
Phone: +58 14 929 2552
Fax: +58 2 9937296
E-mail: venezuela@aes.org
Contact: Elmar Leal, Chairman
Juan Font, Vice Chairman
AES CORP
Investor Relations
Kenneth R. Woodcock, 703/522-1315
www.investing@aes.com
Website: http://www.aesc.com/
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