Vitro Reports Decline in Sales, Increase in EBITDA in 4Q 2011
February 28, 2012

Officials at Vitro S.A.B. de C.V. of Mexico today announced the company's fourth-quarter 2011 unaudited results. Year-over-year (YoY) consolidated net sales decreased 1.5 percent, mostly affected by 10.6 percent peso depreciation, YoY (quarterly average), which offset a temporary increase in demand in glass containers and an increase in domestic flat glass sales volume, according to the company . Consolidated EBITDA increased 37.7 percent, YoY, from the positive impact of the recovery of $33 million, corresponding to the remaining amount of the company's insurance claims related to damages caused by Hurricane Alex, which more than compensated the restructuring expenses accrued on this period.

As a result of the sale of Vitro America Inc. in June 2011, and according to Mexican Financial Accounting Standards (MFRS), for a comparative purpose, current and historical figures of that company are shown as discontinued operation in every period, except where indicated otherwise, according to the report.

"With respect to Vitro's debt restructuring process, on February 7, 2012, Vitro was notified that the judge overseeing the company's concurso mercantil proceedings issued her final ruling approving the restructuring plan filed by the conciliador and approved by the majority of the recognized creditors and Vitro, which provides for the replacement of the guarantees that were previously granted by Vitro's subsidiaries," says Hugo Lara, CEO. "Furthermore, on February 23, 2012, Vitro consummated the concurso plan and completed its debt restructuring under the Mexican insolvency plan. We are very pleased with this ruling and the completion of our restructuring, which undoubtedly is a turning point in Vitro's more than century old history."

Net free cash flow this quarter increased by $65 million, reflecting higher EBITDA, a lower capital expenditure, as most investments were scheduled in previous quarters, and a recovery in working capital consistent with typical business seasonality.

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Click here for Vitro's debt report.

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