DIVISIONAL RESULTS (Under Continuing Operations) (All numbers in

thousands)

 

Second Quarter 2005

 

                   Ports   Specialized  Logistics  Others   Total

                            Maritime

 

Revenues           8,608     42,702      24,402     (40)   75,672

 

Costs              7,390     36,929      23,892     (62)   68,149

 

Gross Result       1,218      5,773         510      22     7,523

 

Gross Margin       14.1%      13.5%        2.1%   55.0%      9.9%

 

SG & A (Estimate)  1,076      1,058       1,240   4,078     7,452

 

Operating Results    142      4,715        (730) (4,056)       71

 

Operating Margin    1.6%      11.0%       (3.0%)    n.a.     0.1%

 

 

(a)Second Quarter 2004

                 Ports   Specialized   Logistics   Others   Total

                          Maritime

 

Revenues         6,025     34,347        22,021     (282)  62,111

 

Costs            5,158     29,089        18,793     (257)  52,783

 

Gross Result       867      5,258         3,228      (25)   9,328

 

Gross Margin     14.4%      15.3%         14.7%    (8.9%)   15.0%

 

SG & A (Estimate)  828        980         1,411    3,597    6,816

 

Operating Results   39      4,278         1,817   (3,622)   2,512

 

Operating Margin  0.6%      12.5%          8.3%      n.a.    4.0%

 

 

First Six Months 2005

                  Ports   Specialized   Logistics  Others   Total

                            Maritime

 

Revenues         17,496      72,632      50,162     (73)  140,217

 

Costs            14,378      62,833      47,088     (89)  124,210

 

Gross Result      3,118       9,799       3,074      16    16,007

 

Gross Margin      17.8%       13.5%        6.1%    21.9%    11.4%

 

SG & A (Estimate) 2,112       2,001       2,486   8,170    14,769

 

Operating Results 1,006       7,798         588  (8,154)    1,238

 

Operating Margin   5.7%       10.7%        1.2%     n.a.     0.9%

 

 

(a)First Six Months 2004

                   Ports  Specialized  Logistics  Others    Total

                           Maritime

 

Revenues           11,392    62,819      44,107    (567)  117,751

 

Costs               9,671    53,348      38,387    (522)  100,884

 

Gross Result        1,721     9,471       5,720     (45)   16,867

 

Gross Margin        15.1%     15.1%       13.0%   (7.9%)    14.3%

 

SG & A (Estimate)   1,693     2,070       2,591   8,057    14,411

 

Operating Results      28     7,401       3,129  (8,102)    2,456

 

Operating Margin     0.2%     11.8%        7.1%     n.a.     2.1%

 

(a)Discontinued and restated operations

 

 

Grupo TMM, S.A. and subsidiaries

     (a)Statement of Income (discontinuing of railroad    

         operations)

                  - millions of dollars -

 

                          Three months ended    Six months ended

                              June 30,              June 30,

                           2005     2004        2005       2004

 

Revenue from freight and

services                  75.672   62.111      140.217   117.751

 

Cost of freight and

services                 (66.831) (51.293)    (121.527)  (97.868)

 

Depreciation of vessels and

operating equipment       (1.318)  (1.490)      (2.683)   (3.016)

 

 

                           7.523    9.328       16.007    16.867

 

Administrative expenses   (7.140)  (6.816)     (14.093)  (13.867)

 

Corporate restructuring

expenses                  (0.312)               (0.676)   (0.544)

 

Operating Income           0.071    2.512        1.238     2.456

 

 

Other (expenses) income     

- Net                     (0.683)   3.701       (0.626)    3.597

 

 

 

Financial (expenses)

income

- Net                    (13.040) (14.736)     (36.366)  (29.171)

 

Exchange gain (loss)

- Net                      0.468   (0.296)       0.295    (0.060)

 

 

Net financial cost       (12.572) (15.032)     (36.071)  (29.231)

 

 

Loss before taxes and

profit sharing           (13.184)  (8.819)     (35.459)  (23.178)

 

 

Benefit (provision) for

taxes and profit sharing   2.205   (5.636)       3.334     2.331

 

 

Loss before minority

interest                 (10.979) (14.455)     (32.125)  (20.847)

 

 

Minority interest         (0.768)  (0.462)      (1.606)   (1.596)

 

 

Net loss before

discontinuing operations (11.747) (14.917)     (33.731)  (22.443)

 

 

Income (loss) from

discontinuing operations            0.252        1.364    (1.362)

 

Income from disposal

discontinuing business,

net of income taxes                            176.412

 

 

Net (loss) income for the

period                   (11.747) (14.665)     144.045   (23.805)

 

 

Weighted average

outstanding shares

(millions)                56.963   56.963       56.963    56.963

(Loss) income earnings

per share

(dollars / share)          (0.21)   (0.26)        2.53     (0.42)

 

Outstanding shares

at end of period

(millions)                56.963   56.963       56.963    56.963

(Loss) income earnings

per share

(dollars / share)          (0.21)   (0.26)        2.53     (0.42)

 

 

(a) Prepared in accordance with International Financial Reporting

Standards.

 

Note: In accordance with International Financial Reporting Standard # 5 (IFRS 5) "Non-current assets held for sale and discontinued operations" Grupo TMM, S. A. shows the effect of the applications of the Financial Statements.

 

                   Grupo TMM, S.A. and subsidiaries

        (a)Balance Sheet (discontinuing of railroad operations)

                        - millions of dollars -

 

 

                                      June 30,     December 31,

                                        2005           2004

 

 

Current assets:

 

Cash and cash equivalents              50.949         53.148

 

Accounts receivable

Accounts receivable - Net              47.669         37.396

 

Other accounts receivable             104.718         62.539

 

Prepaid expenses and

other current assets                   10.076         8.095

 

Non current assets

classified as held for sale                       2,080.529

 

Total current assets                  213.412     2,241.707

 

 

Property, machinery and equipment

- Net                                  80.063        79.218

 

 

Other assets                          383.304        30.183

 

 

Deferred taxes                         43.980        23.900

 

 

Total assets                          720.759     2,375.008

 

 

Current liabilities:

 

Bank loans and

current maturities

of long term liabilities               26.320        26.545

 

Suppliers                              28.221        24.495

 

Other accounts payable

and accrued expenses                   84.767        89.710

 

Liabilities directly associated

with non-current assets

classified as held for sale                       1,054.556

 

Total current liabilities             139.308     1,195.306

 

 

Long-term liabilities:

 

Bank loans and other obligations      439.785       469.449

 

Other long-term liabilities            24.411        73.586

 

Total long-term liabilities           464.196       543.035

 

 

Total liabilities                     603.504     1,738.341

 

 

Minority interest                      22.570       686.026

 

 

Stockholders' equity

Common stock                          121.158       121.158

 

Retained earnings                      (8.716)     (152.760)

 

Initial accumulated translation loss  (17.757)      (17.757)

 

Total stockholder's equity             94.685       (49.359)

 

 

Total liabilities and

stockholders' equity                  720.759     2,375.008

 

 

(a) Prepared in accordance with International Financial Reporting

Standards.

 

Note: In accordance with International Financial Reporting Standard # 5 (IFRS 5) "Non-current assets held for sale and discontinued operations" Grupo TMM, S.A. shows the effect of the applications of the Financial Statements.

 

               Grupo TMM, S.A. and subsidiaries

   (a)Statement of Cash Flow (discontinuing of railroad

       operations)

                   - millions of dollars -

 

                     Three months ended        Six months ended

                          June 30,                 June 30,

                     2005          2004        2005        2004

 

Cash flow from

operation activities:

 

Net loss before

discontinuing

operations:         (11.747)     (14.917)     (33.731)   (22.443)

 

 

Charges (credits)

to income not

affecting resources:

Depreciation &

amortization          5.886        3.382       13.595      7.103

 

Minority interest    (0.768)      (0.462)      (1.606)    (1.596)

 

Deferred

income taxes          0.744        2.182        1.055      2.912

 

Other non-cash

items               (24.039)       2.646      (18.177)    (4.645)

 

Total non-cash

items               (18.177)       7.748       (5.133)     3.774

 

Changes in assets &

liabilities          31.316       (2.851)      30.736     (5.077)

 

Total adjustments    13.139        4.897       25.603    (1.303)

----------------------------------------------------------------------

 

   Net cash provided (used in)

    by operating activities     1.392  (10.020)      (8.128)  (23.746)

======================================================================

 

Cash flow from investing

activities:

 

Proceeds from sales of

assets (net)                    1.132    0.002        1.221     0.690

 

Payments for purchases of

assets                         (8.951)  (3.775)     (12.207)   (6.398)

 

Acquisition of shares of

subsidiaries                  (34.059)              (34.059)

 

Proceeds from discontinued

business (net)                183.712               191.804

 

 

Net cash provided (used in)

by investment activities      141.834   (3.773)     146.759    (5.708)

 

 

Cash flow provided by

financing activities:

 

Short-term borrowings

(net)                          (0.150)  (0.150)      (0.300)   (0.300)

 

Principal payments under

capital lease obligations               (0.023)      (0.025)   (0.045)

 

(Repurchase) sale of

accounts receivable (net)      (69.974) 12.261      (74.972)    8.668

 

Repayment of long-term

debt                           (68.383)  (0.248)     (68.858)   (0.495)

 

Proceeds from issuance of

long-term debt                   1.589                 3.325

 

 

Net cash (used in)

provided by financing

activities                    (136.918)  11.840     (140.830)    7.828

 

 

Net increase (decrease)

in cash                          6.308   (1.953)      (2.199)  (21.626)

 

Cash at beginning of

period                          44.641   51.357       53.148    71.030

 

Cash at end of period           50.949   49.404       50.949    49.404

 

(a) Prepared in accordance with International Financial Reporting

Standards.

 

Note: In accordance with International Financial Reporting Standard # 5 (IFRS 5) "Non-current assets held for sale and discontinued operations" Grupo TMM, S.A. shows the effect of the applications of the Financial Statements.