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 September, 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): ____
NYSE: CGW
Santiago: CRISTALES
www.cristalchile.cl
CONTACT IN SANTIAGO:
Ricardo Dunner
Head of Investor Relations
PH: (562) 787-885
FAX: (562) 787-8800
EMAIL: rdunner@cristalchile.cl
FOR IMMEDIATE RELEASE
CRISTALERIAS DE CHILE REPORTS ITS RESULTS FOR
SECOND QUARTER AND FIRST HALF 2003
Santiago, Chile (August 29, 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 second quarter and six-month periods ended
June 30, 2003. All figures have been prepared according to Chilean GAAP and are
stated in constant Chilean Pesos and in US Dollars at Ch$699.12/US$1, the
exchange rate at the close of June 30, 2003.
2Q03 HIGHLIGHTS (vs. 2Q02):
o Consolidated sales increased 2.8%
o Operating income down 21.8%
o EBITDA down 15.3%
o Non-operating loss of Ch$8,702 million in 2Q03 compared to a Ch$3,262 million
loss in 2Q02.
o Net loss of Ch$1,381 million, compared to Ch$3,515 million income in 2Q02.
YTD 2003 HIGHLIGHTS (vs. YTD 2002):
o Consolidated sales increased 7.4%
o Operating income down 8.9%
o EBITDA down 5.3%
o Non-operating loss of Ch$9,826 million compared to a loss of Ch$8,420 million
in 2002.
o Net income reached Ch$2,940 million compared to Ch$3,697 million reported in
2002.
o Earnings Per ADR reached US$0.20
CONSOLIDATED REVENUE
2Q03 vs.
(in Ch$ millions) 2Q03 2Q02 2Q02 YTD03
---- ---- ---- -----
TOTAL REVENUE 40,860 39,749 2.8% 76,479
Cristalchile (glass containers)..... 15,754 15,672 0.5% 33,324
Vina Santa Rita (wine).............. 19,424 19,855 -2.2% 34,457
CIECSA (media)...................... 7,124 6,235 14.3% 11,510
Adjustments......................... 1,442 2,013 N/A 2,812
RELATED COMPANIES
Metropolis-Intercom (cable)......... 11,414 11,438 -0.2% 22,270
Envases CMF (plastic containers).... 7,286 6,722 8.4% 16,144
SECOND QUARTER 2003 RESULTS
CONSOLIDATED RESULTS
During 2Q03, Cristalerias' total consolidated revenue reached Ch$40,860 million,
a 2.8% increase versus the 2Q02. The main factors behind this increase were
improved sales in CIECSA (+14.3%) and the glass container business (+0.5%);
partially compensated by lower sales in Santa Rita (-2.2%). Adjustments for
factors such as intercompany sales reached Ch$1,442 million during the quarter.
2003 Revenue Breakdown [GRAPHIC]
Media Glass Wine
----- ----- ----
17% 37% 46%
Consolidated operating income decreased by 21.8% during the quarter, totaling
Ch$8,008 million (US$11.5 million). This includes Ch$3,721 million from the
glass container business, Ch$3,306 million from Santa Rita and Ch$968 million
from CIECSA.
During the quarter, Cristalerias had a Ch$1,381 million (US$2.0 million) net
loss, compared with a Ch$3,515 million (US$5.0 million) income in 2Q02. This is
mainly explained by a Ch$8,702 million (US$ 12.4 million) non-operating loss in
2Q03, compared to a Ch$3,262 million (US$4.7 million) non-operating loss in
2Q02. The latter is mainly explained by a higher Ch$6,111 million (US$8.7
million) loss from exchange differences (Ch$3,010 million income in 2Q02);
partially compensated by a lower Ch$808 million net loss from subsidiaries that
do not consolidate (Ch$3,788 million loss in 2Q02), due to better results at
Rayen Cura, Metropolis-Intercom and Envases CMF. The net loss from subsidiaries
includes a Ch$1,049 million charge (Ch$1,043 million charge in 2Q02)
corresponding to goodwill amortization, which does not constitute cash flow.
EBITDA: Operating cash generation decreased from Ch$13,670 million (US$19.6
million) in the 2Q02 to Ch$11,573 million (US$16.6 million) in the 2Q03. EBITDA
margin for the quarter was 28.3% (34.4% in 2Q02).
The following analysis explains Cristalerias' results based on individual
financial statements, as well as those of its main subsidiaries:
2
PACKAGING BUSINESS
Glass
Glass packaging sales during the quarter increased by 0.5% to Ch$15,754 million
(US$22.5 million). Volume sales decreased by 0.6%, totaling 53,853 tons. Wine
bottle sales increased by 1.5%, mainly due to a better mix from a higher
acceptance of heavier upper-scale formats. Liquor bottle sales increased by
21.5%, mainly due to the launching of a 700cc format for a new pisco brand.
Soft-drink bottle sales increased by 8.9%, mainly due to the launching of a new
237cc crown-top returnable format.
Beer bottle sales decreased by 19.7%, due to lower sales of returnable formats,
partially compensated by higher sales of one-way formats. Containers for the
food industry decreased due to lower food exports to Latin America.
GLASS
2Q03 vs.
2Q03 2Q02 2Q02
---- ---- ----
Net Sales (in Ch$ millions) ....... 15,754 15,672 0.5%
Wine............................. 10,814 10,652 1.5%
Soft Drinks...................... 1,697 1,559 8.9%
Liquor........................... 1,463 1,204 21.5%
Beer............................. 1,406 1,752 -19.7%
Food............................. 299 320 -6.6%
Pharmaceutical................... 75 185 -59.6%
Volume in tons..................... 53,853 54,158 -0.6%
Operating income reached Ch$3,721 million (US$5.3 million), compared with
Ch$5,122 million in 2Q02 (US$7.3 million). Operating margins reached 23.6% in
2Q03 (32.7% in 2Q02) due to lower volume sales, higher production costs from
operating with three furnaces and higher sales of lower-margin imported bottles
due to the reconstruction of furnace B.
Net earnings for 2Q03 include a non-operating loss of Ch$5,394 million (US$7.7
million), compared to a Ch$311 million (US$0.4 million) non-operating loss in
2Q02. The Company registered a higher loss from exchange differences (Ch$4,941
million, Ch$1,814 million income in 2Q02); partially compensated by a net income
from subsidiaries (Ch$194 million in 2Q03, Ch$1,434 million loss in 2Q02), due
to a higher income from Cristalchile Inversiones (40% owner of Rayen Cura) and
Envases CMF; and a lower loss from Cristalchile Comunicaciones (owner of 50% of
Metropolis-Intercom).
EBITDA: Operating cash generation was Ch$6,063 million (US$8.7 million) in 2Q03,
compared to Ch$7,385 million (US$10.6 million) in 2Q02. EBITDA margin was 38.5%
(47.1% in 2Q02).
3
Plastic
During 2Q03, Envases CMF posted a Ch$663 million (US$ 0.9 million) net profit,
compared to Ch$704 million (US$ 1.0 million) net loss in 2Q02. Total sales
reached Ch$7,286 million (US$10.4 million), compared with Ch$6,722 million in
2Q02. Volumes increased by 5.0%, reaching 4,927 tons, while prices increased by
3.2%. Operating income reached Ch$416 million, compared to Ch$90 million
operating loss in 2Q02, due to higher operating efficiencies and a more
profitable sales mix. The Company had a Ch$338 million non-operating income
(Ch$694 million non-operating loss in 2Q02) mainly due to an income from
exchange differences.
EBITDA: Operating cash generation increased from Ch$980 million (US$1.4 million)
in 2Q02 to Ch$1,550 million (US$2.2 million) during 2Q03. EBITDA margin reached
21.3% (14.6% in 2Q02).
4
WINE BUSINESS
During 2Q03, Santa Rita's consolidated sales totaled Ch$19,424 million (US$27.8
million), compared to Ch$19,855 million (US$28.4 million) in 2Q02. The Company's
profits came in at Ch$1,660 million (US$2.4 million), compared with Ch$3,240
million (US$4.6 million) in 2Q02, mainly due to a lower non-operating result,
that included a loss from exchange differences.
In the domestic market, Santa Rita's volumes fell by 7.5% compared to 2Q02.
Prices fell by 2.0% in real terms as a result of sharp competition. These
conditions led net sales in the domestic market to drop by 9.4%.
In the export market sales rose by 4.8% reaching US$15.8 million, which
accounted for 56.8% of total revenues. The average price in Dollars per case in
the export market reached US$33.2 (US$31.2 in 2Q02), compared with an industry
average of US$23.71 (US$23.18 in 2Q02).
Operating income at Ch$3,306 million maintained its 2Q02 level as operating
margin increased to 17.0% (16.7% in 2Q02).
EBITDA: Operating cash generation increased by 1.7% to Ch$4,320 million (US$6.2
million) during the quarter. Accordingly, EBITDA margin rose from 21.4% to
22.2%.
SANTA RITA
2Q03 vs.
2Q03 2Q02 2Q02
---- ---- ----
Net Sales (in Ch$ millions).......................... 19,424 19,855 -2.2%
Domestic........................................... 8,044 8,875 -9.4%
Exports............................................ 11,024 10,523 4.8%
Others............................................. 356 457 -22.1%
Volume...............................................
Exports (Th cases)................................. 476 491 -3.0%
Domestic (Th liters)............................... 16,303 17,629 -7.5%
Price per case - Export Mkt.( US$)................... 33.2 31.2 6.7%
Avg. price per case - Domestic Mkt. (Ch$)............ 4,437 4,527 -2.0%
5
MEDIA BUSINESS
Television Broadcasting, Financial Printed Press, and Other Media
[GRAPHIC]
During 2Q03, CIECSA reported a net income of Ch$520 million (US$0.7 million)
compared to Ch$579 million in 2Q02.
MEGA, CIECSA's main subsidiary, reached an average viewership share of 23.3% in
2Q03 (26.1% in 2Q02). Net sales increased by 13.5% in 2Q03 to reach Ch$6,968
million (US$10.0 million). MEGA had an Ch$898 million (US$1.3 million) operating
profit, compared to Ch$1,730 million during 2Q02, due to higher internal
productions that increased costs. Therefore, MEGA posted a Ch$457 million net
income, compared to Ch$719 million net income in 2Q02.
EBITDA: CIECSA's operating cash generation decreased from Ch$1,990 million
(US$2.8 million) in 2Q02 to Ch$1,168 million (US$1.7 million) in 2Q03. EBITDA
margin was 16.4% (31.9% in 2Q02).
Cable Television
Cristalchile Comunicaciones S.A. (Cristalerias' wholly-owned subsidiary), owner
of 50% of Cordillera Comunicaciones Ltda., had a net loss of Ch$1,942 million
(US$2.8 million) during the quarter compared to a net loss of Ch$2,499 (US$3.6
million) in 2Q02. Similarly, Cordillera Comunicaciones Ltda. (owner of 99% of
Metropolis-Intercom S.A.) had a net loss of Ch$3,884 million (US$5.6 million) in
2Q03, compared to a net loss of Ch$4,998 million (US$7.1 million) in 2Q02. The
aforementioned result includes a goodwill amortization charge of Ch$1,049
million (Ch$1,043 million in 2Q02).
6
During 2Q03 Metropolis-Intercom S.A. posted sales of Ch$11,414 million (US$16.3
million), compared to Ch$11,438 million in 2Q02. At operating level, the Company
renegotiated programming costs with content providers. Metropolis-Intercom
posted a net loss of Ch$2,841 million (US$4.1 million), compared to a net loss
of Ch$3,940 million (US$5.6 million) in 2Q02. The latter includes a Ch$3,427
million (US$4.9 million) depreciation charge, compared to a Ch$2,891 million
(US$4.1 million) charge in 2Q02, mainly coming from the HFC network acquired in
July 2000. The Company ended the period with 237,324 basic subscribers (239,042
in 2Q02), and 29,286 broad-band internet subscribers, 79.1% over 2Q02.
METROPOLIS-INTERCOM
2Q03 vs.
06/30/03 03/31/03 1Q03
-------- -------- ----
Basic Subscribers(1)................ 237,324 240,119 -1.2%
Premium customers................... 33,440 33,761 -1.0%
Internet customers.................. 29,286 25,924 13.0%
Home Passed......................... 1,172,109 1,129,885 3.7%
2Q03 vs.
2Q03 2Q02 2Q02
---- ---- ----
Sales (Ch$ Million)................. 11,414 11,438 -0.2%
Net Profit (loss) (Ch$ Million)..... (2,841) (3,940) 27.9%
(1) Includes Premium and Internet customers.
7
FIRST HALF OF 2003 RESULTS
CONSOLIDATED RESULTS
YTD03 Revenue Breakdown [GRAPHIC]
Media Glass Wine
----- ----- ----
15% 42% 43%
The Company consolidates its results with those of Vina Santa Rita, CIECSA,
Cristalchile Comunicaciones, Cristalchile Inversiones and Apoger. During the
first half of 2003, Cristalerias' total consolidated revenue reached
Ch$76,479 million (US$109.4 million), a 7.4% increase over 2002. The main
factors behind this growth include improved sales in the glass container
(+6.0%), wine (+3.8%) and media (+14.5%) businesses.
Consolidated operating income decreased by 8.9% during the period, totaling
Ch$15,520 million (US$22.2 million). This includes Ch$9,628 million from the
glass container business, Ch$4,967 million from Santa Rita and Ch$853 million
from CIECSA.
For the six-month period ended on June 30, 2003, Cristalerias' net income was
Ch$2,940 million (US$4.2 million), compared to Ch$3,697 million (US$5.3 million)
in 2002. The Company had a higher non-operating loss of Ch$9,826 million
(US$14.1 million), compared to a non-operating loss of Ch$8,420 million (US$12.0
million) in 2002. The latter is mainly explained by a higher loss from exchange
differences of Ch$4,437 million in 2003, compared to a Ch$3,000 million income
in 2002; partially compensated by a lower net loss from subsidiaries that do not
consolidate of Ch$1,908 million (compared to a Ch$7,716 million loss in 2002),
mainly due to a lower loss at Metropolis-Intercom and better results at Rayen
Cura, Envases CMF and Vina Los Vascos. The net loss from subsidiaries includes a
Ch$2,082 million charge (Ch$2,080 million charge in 2002) corresponding to
goodwill amortization, which does not constitute cash flow.
EBITDA: Operating cash generation reached Ch$22,535 million (US$32.2 million),
compared to Ch$23,803 million (US$34.0 million) in 2002. EBITDA margin was 29.5%
(33.4% in 2002).
The following analysis explains Cristalerias' results based on individual
financial statements, as well as those of its main subsidiaries:
8
PACKAGING BUSINESS
Glass
The Company had non-consolidated sales of Ch$33,324 million (US$47.7 million),
6.0% higher than in 2002. Volume sales increased by 3.7%, totaling 112,120 tons.
Wine bottle sales increased by 5.2% during the period due to a better sales mix
from a higher acceptance of heavier upper-scale formats and an increase in wine
export volumes. Liquor bottle sales increased by 31.6%, due to the launching of
a 700cc format for a new pisco brand. Soft drink bottle sales increased by 8.0%
due to the launching of a 237cc crown-top returnable format.
Beer bottle sales decreased by 0.3% due to lower sales of returnable formats,
partially compensated by higher sales of one-way formats. Sales of containers
for the food industry decreased due to lower food exports to Latin America.
GLASS
YTD03 vs.
YTD03 YTD02 YTD02
----- ----- -----
Net Sales (in Ch$ millions)............ 33,324 31,446 6.0%
Wine................................. 21,297 20,244 5.2%
Soft Drinks.......................... 3,891 3,602 8.0%
Beer................................. 4,456 4,471 -0.3%
Liquor............................... 2,745 2,085 31.6%
Food................................. 751 780 -3.7%
Pharmaceutical....................... 186 264 -29.6%
Volume in tons......................... 112,120 108,080 3.7%
Operating income reached $9,628 million (US$13.8 million), compared to Ch$10,324
million (US$14.8 million) in 2002. Operating margin was 28.9% (32.8% in 2002),
mainly due to higher production costs and higher sales of lower-margin imported
products due to the reconstruction of furnace B.
Net earnings for the period include a non-operating loss of Ch$5,950 million
(US$8.5 million), compared to a non-operating loss of Ch$4,484 million (US$6.4
million) in 2002. During the period the Company registered a Ch$3,596 million
loss from exchange differences (Ch$1,566 million income in 2002), a lower income
from Santa Rita and CIECSA and higher interest expenses; partially compensated
by a lower Ch$694 million net loss from subsidiaries (Ch$5,059 million loss in
2002), due to better results at Cristalchile Inversiones (40% owner of Rayen
Cura), Cristalchile Comunicaciones (50% owner of Metropolis-Intercom) and
Envases CMF.
EBITDA: Operating cash generation reached Ch$14,271 million (US$20.4 million),
compared to Ch$14,776 million (US$21.1 million) in 2002. EBITDA margin for the
period was 42.8% (47.0% in 2002).
9
Plastic
During the first half of 2003, Envases CMF posted a Ch$1,209 million (US$1.7
million) net income in 2003 (Ch$414 million net loss in 2002). Total sales
reached Ch$16,144 million (US$23.1 million), compared with Ch$15,442 million
(US$22.1 million) in 2002. Volumes increased by 3.4%, reaching 11,006 tons,
while prices increased by 1.1%. Operating income reached Ch$1,590 million,
compared to Ch$752 million in 2002, due to higher operating efficiencies and a
more profitable sales mix. The Company had a Ch$19 million non-operating loss
(Ch$1,235 million non-operating loss in 2002) mainly due to an income from
exchange differences.
EBITDA: Operating cash generation increased from Ch$2,879 million (US$4.1
million) in 2002 to Ch$3,852 million (US$5.5 million) during 2003. EBITDA margin
increased to 23.9% (18.6% in 2002).
10
WINE BUSINESS
During the first half of 2003, Santa Rita's consolidated sales totaled Ch$34,457
million (US$49.3 million), a 3.8% increase over 2002. The Company's profits came
in at Ch$2,865 million (US$4.1 million), compared to Ch$4,292 million (US$6.1
million) in 2002. These results are mainly due to a decrease in the
non-operating result, that registered a loss from exchange differences.
In the domestic market, Santa Rita volumes were similar to those of 2002. Prices
dropped by 3.5% in real terms as a result of strong competition. These
conditions led net sales in the domestic market to drop by 3.8%.
During the period, exports at US$26.8 million accounted for 55.8% of total
revenues (US$25.2 million in 2002). The average price in dollars per case
reached US$32.5 (US$30.5 in 2002), compared with an industry average of US$23.6
(US$23.1 in 2002).
By markets, the export decrease breakdown is as follows: Europe, -6.5%; USA,
-2.3%; partially offset by higher sales to Latin America, +43.7%; Asia+Africa,
+29.5%; and Canada, +3.3%.
SANTA RITA
YTD03 vs.
YTD03 YTD02 YTD02
----- ----- -----
Net Sales (in Ch$ millions) .................... 34,457 33,182 3.8%
Domestic ..................................... 14,354 14,916 -3.8%
Export ....................................... 19,218 17,452 10.1%
Others ....................................... 885 814 8.7%
Volume .........................................
Exports (Th cases) ........................... 825 827 -0.2%
Domestic (Th liters) ......................... 29,230 29,315 -0.3%
Price per case - Export Mkt.( US$) ............. 32.5 30.5 6.4%
Avg. price per case - Domestic Mkt. (Ch$) ...... 4,419 4,581 -3.5%
EBITDA: Operating cash generation increased from Ch$6,715 million (US$9.6
million) in 2002 to Ch$6,943 million (US$9.9 million) during 2003. EBITDA margin
was 20.1% (20.2% in 2002).
11
MEDIA BUSINESS
Television Broadcasting, Financial Printed Press and Other Media
During 2003, CIECSA reported a net profit of Ch$75 million (US$0.1 million)
compared to a net profit of Ch$319 million (US$0.5 million) in 2002.
MEGA, CIECSA's main subsidiary, reached an average viewership share of 23.1%
during the period (1) (24.3% in 2002). The Company increased net sales by 14.1%
reaching Ch$11,327 million (US$16.2 million). MEGA had an Ch$809 million
operating income, compared to Ch$1,776 million operating income in 2002, as
higher internal productions resulted in higher costs. Net income reached Ch$209
million (US$0.3 million), compared to Ch$525 million (US$0.8 million) during
2002.
EBITDA: CIECSA's operating cash generation reached Ch$1,245 million in 2003
(US$1.8 million) compared to Ch$2,256 million (US$3.2 million) during 2002.
EBITDA margin was 10.8% (22.5% in 2002).
Cable Television
Cristalchile Comunicaciones S.A. (Cristalerias wholly-owned subsidiary), owner
of 50.0% of Cordillera Comunicaciones Ltda. had a net loss of Ch$3,447 million
(US$4.9 million) during the period compared with a net loss of Ch$4,974 million
(US$7.1 million) in 2002. Similarly, Cordillera Comunicaciones Ltda. (owner of
99.9% of Metropolis-Intercom S.A.) posted a net loss of Ch$6,892 million (US$9.9
million) in 2003, compared to a net loss of Ch$9,945 million (US$14.2 million)
in the same period of 2002. The aforementioned result includes a goodwill
amortization charge of Ch$2,082 million for the period (Ch$2,080 million in
2002).
12
During the first half of 2003 Metropolis-Intercom S.A. posted sales of Ch$22,270
million (US$31.9 million) compared with Ch$23,328 million in 2002. At operating
level, the Company renegotiated programming costs with content providers.
Metropolis-Intercom posted a net loss of Ch$4,815 million (US$6.9 million),
compared to a net loss of Ch$7,849 million (US$11.2 million) in 2002. The latter
includes a depreciation charge of Ch$6,631 million (US$9.5 million) compared to
Ch$5,655 million (US$8.1 million) charge in 2002 coming mainly from the HFC
network (acquired in July 2000). The Company ended the period with 237,324 basic
subscribers (239,042 in 2002), and 29,286 broad-band internet subscribers, 79.1%
over 2002.
METROPOLIS-INTERCOM
06/30/03 12/31/02 % Change
-------- -------- --------
Basic Subscribers (1)....................... 237,324 238,725 -0.6%
Premium customers........................... 33,440 31,840 5.0%
Internet customers.......................... 29,286 23,559 24.3%
Home Passed................................. 1,172,109 1,128,247 3.9%
YTD03 vs.
YTD03 YTD02 YTD02
----- ----- -----
Sales (Ch$ Million)......................... 22,270 23,328 -4.5%
Net Profit (loss) (Ch$ Million)............. (4,815) (7,849) 38.7%
(1) Includes Premium and Internet customers.
INVESTMENTS
a) Furnace B
On June 17th, 2003, civil works for the reconstruction, capacity increase and
addition of a new productive line in Furnace B located at Cristalerias' Padre
Hurtado Plant were completed. Total investment (including the new productive
line) amounted US$25 million. The reconstructed furnace increases total plant
capacity by approximately 15%. The new furnace is operating normally.
b) Capital injection in CIECSA
On July 29th, 2003, the Board of Directors of Cristalerias de Chile S.A. agreed
to make a capital injection to CIECSA in the equivalent of US$1.3 million. The
resources obtained from the capital injection will be destined to pay part of
the outstanding balance of the purchase of shares of Red Televisiva Megavision
S.A., effected on August 27, 2002, to Grupo Televisa S.A. de C.V. Mexico.
c) Capital injection in Cristalchile Comunicaciones S.A.
On July 29, 2003, the Board of Directors of Cristalerias de Chile S.A. agreed to
make a capital injection to Cristalchile Comunicaciones S.A. in the amount of
Ch$2,480,000,000 (approximately US$3.5 million), corresponding to 50% of the
value of a share issue to increase the capital of Metropolis-Intercom by
$4.931.000.444 (approximately US$7.1 million). The resources obtained from the
capital injection will be primarily destined to finance a broad band network
expansion at Metropolis-Intercom.
13
CRISTALERIAS DE CHILE S.A.
CONSOLIDATED FINANCIAL STATEMENTS
(Restated for general price-level changes and
expressed in millions of Chilean Pesos as
of June 30, 2003) 1 US Dollar
= 699.12 Chilean Pesos
BALANCE SHEET
As of June 30
-------------------------------
2003 2002
ASSETS MCh$ MCh$
------ ---- ----
Cash, time deposits, marketable securities.................. 92,599 50,824
Receivables................................................. 41,866 41,456
Inventories, net............................................ 44,773 41,403
Other current assets........................................ 4,780 2,976
TOTAL CURRENT ASSETS........................................ 184,018 136,660
NET P.P.&E.................................................. 139,992 135,475
Investment in related companies............................. 106,577 113,181
Long-term receivables....................................... 9,481 9,400
Goodwill on investments..................................... 826 1,496
Accounts receivable, related companies...................... 3 1
Others...................................................... 25,942 22,765
TOTAL OTHER ASSETS.......................................... 142,829 146,843
TOTAL ASSETS................................................ 466,838 418,978
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current portion of long-term & short-term debt.............. 5,999 26,837
Dividends payable........................................... 508 556
Accounts and notes payable.................................. 26,138 21,591
Provisions, withholdings, income taxes...................... 19,347 16,753
Advances from customers..................................... 3,969 2,406
TOTAL CURRENT LIABILITIES................................... 55,962 68,143
Long-term bank liabilities and bonds payable................ 131,675 80,879
Miscellaneous creditors..................................... 350 1,397
Provisions and others....................................... 12,016 10,073
TOTAL LONG-TERM LIABILITIES................................. 144,04 92,349
MINORITY INTEREST........................................... 37,199 36,818
TOTAL SHAREHOLDERS' EQUITY.................................. 229,637 221,668
TOTAL LIAB. & SHAREHOLDERS' EQUITY.......................... 466,838 418,978
STATEMENT OF INCOME
6 month period
ended June 30 Second quarter
--------------------- --------------------
2003 2002 2003 2002
MCh$ MCh$ MCh$ MCh$
---- ---- ---- ----
OPERATING RESULTS:
Net sales......................................... 76,479 71,199 40,860 39,749
Cost of sales..................................... (48,986) (42,716) (26,299) (22,951)
Selling and administrative expenses............... (11,974) (11,454) (6,553) (6,559)
OPERATING INCOME.................................. 15,520 17,030 8,008 10,239
NON-OPERATING RESULTS:
Cordillera Comunicaciones Ltda.................. (3,446) (4,973) (1,942) (2,499)
Editorial Zig-Zag............................... (111) (93) (80) (49)
Vina Los Vascos S.A. 397 73 288 39
Rayen Cura S.A.I.C.............................. 738 (2,481) 571 (952)
Envases CMF..................................... 605 (208) 332 (352)
Ediciones Chiloe................................ (92) (33) 24 25
Others.......................................... 0 (1) 0 (0)
Equity in net income related companies (net)...... (1,908) (7,716) (808) (3,788)
Interest income (expense) net..................... (1,819) (1,290) (602) (648)
Other nonrecurring income (net)................... (680) (1,159) (278) (975)
Amortization of goodwill.......................... (318) (299) (154) (152)
Price-level restatement........................... (664) (956) (749) (709)
Exchange Rate Variations.......................... (4,437) 3,000 (6,111) 3,010
NON-OPERATING INCOME.............................. (9,826) (8,420) (8,702) (3,262)
Income tax........................................ (1,429) (2,822) 93 (1,804)
Extraordinary Items............................... -- -- -- --
Minority interest................................. (1,325) (2,092) (780) (1,657)
NET INCOME........................................ 2,940 3,697 (1,381) 3,515
CRISTALERIAS DE CHILE S.A.
INDIVIDUAL FINANCIAL STATEMENTS
(Restated for general price-level
changes and expressed in
millions of Chilean Pesos as
of June 30, 2003) 1 US Dollar
= 699.12 Chilean Pesos
BALANCE SHEET
As of June 30
-------------------------------
2003 2002
ASSETS MCh$ MCh$
------ ---- ----
Cash, time deposits, marketable securities................... 75,522 33,334
Receivables.................................................. 19,098 20,469
Inventories, net............................................. 6,643 6,326
Other current assets......................................... 1,962 1,142
TOTAL CURRENT ASSETS......................................... 103,224 61,271
NET P.P.&E................................................... 80,133 75,227
Investment in related companies.............................. 144,106 142,682
Long-term receivables........................................ 151 183
Goodwill on investments...................................... 1,980 2,152
Accounts receivable, related companies....................... 21,863 25,575
Others....................................................... 12,858 9,892
TOTAL OTHER ASSETS........................................... 180,959 180,484
TOTAL ASSETS................................................. 364,317 316,981
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term debt............................ 1,829 21,061
Dividends payable............................................ 507 555
Accounts and notes payable................................... 8,361 5,376
Provisions, withholdings, income taxes....................... 9,458 7,595
TOTAL CURRENT LIABILITIES.................................... 20,155 34,587
Long-term bank liabilities and bonds payable................. 104,491 50,867
Miscellaneous creditors...................................... 185 1,003
Provisions................................................... 7,533 7,390
Others....................................................... 2,316 1,466
TOTAL LONG-TERM LIABILITIES.................................. 114,525 60,726
TOTAL SHAREHOLDERS' EQUITY................................... 229,637 221,668
TOTAL LIAB. & SHAREHOLDERS' EQUITY........................... 364,317 316,981
CRISTALERIAS DE CHILE S.A.
INDIVIDUAL FINANCIAL STATEMENTS
(Restated for general price-level
changes and expressed in
millions of Chilean Pesos as
of June 30, 2003) 1 US Dollar
= 699.12 Chilean Pesos
STATEMENT OF INCOME
6 month period
ended June 30 Second quarter
-------------------- -------------------
2003 2002 2003 2002
MCh$ MCh$ MCh$ MCh$
---- ---- ---- ----
OPERATING RESULTS:
Net sales........................................... 33,324 31,446 15,754 15,672
Cost of sales....................................... (21,190) (18,744) (10,771) (9,257)
General and administrative expenses................. (2,506) (2,377) (1,262) (1,292)
OPERATING INCOME.................................... 9,628 10,324 3,721 5,122
NON-OPERATING RESULTS:
Cristalchile Comunicaciones....................... (3,447) (4,974) (1,942) (2,499)
S.A. Vina Santa Rita.............................. 1,550 2,322 898 1,753
Envases CMF S.A................................... 605 (208) 332 (352)
Ciecsa S.A........................................ 74 313 511 569
Cristalchile Inversiones S.A...................... 526 (2,509) 396 (903)
Others............................................ (1) (3) (0) (2)
Equity in net income related companies (net)........ (694) (5,059) 194 (1,434)
Interest income (net)............................... (939) (504) (132) (284)
Other nonrecurring income (net)..................... (250) (103) (107) (46)
Amortization of goodwill............................ (86) (86) (43) (43)
Price-level restatement............................. (387) (298) (365) (319)
Exchange Rate Variations............................ (3,596) 1,566 (4,941) 1,814
NON-OPERATING INCOME................................ (5,950) (4,484) (5,394) (311)
Income tax.......................................... (737) (2,144) 292 (1,296)
Amortization of negative goodwill................... -- -- -- --
Extraordinary Items................................. -- -- -- --
NET INCOME.......................................... 2,940 3,697 (1,381) 3,515
SALES VOLUME Th Tons Th Tons Th Tons Th Tons
------- ------- ------- -------
Glass sales in Th tons.............................. 112.1 108.1 53.9 54.2
1 Measured between 7:30AM and 1:30AM (i.e.: 18 hours daily) from Monday to
Sunday.
15
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: September, 2003