ALFA S.A.B. de C.V. (ALFA), one of Mexico's leading industrial companies, announced unaudited results for the second quarter of 2011 (2Q11). Consolidated revenues of U.S. $3,786 million, represented a 42% year-on-year increase and a 9% gain on a sequential basis. EBITDA increased 38% year-on-year, to U.S. $445 million, and was 10% higher than 1Q11. Majority Net Income totaled U.S. $182 million, 198% above 2Q10 and 10% below 1Q11.
Commenting on the results, Mr. Álvaro Fernández, President of ALFA, said: “The world economy continued to show only moderate growth during 2Q11. Nevertheless, ALFA posted improvements in all its businesses. This reflects the Company's competitive position and the successful integration of acquisitions in the petrochemical and food groups.”
“Sales volumes at Alpek increased, and the polyester business continued with good margins. Leveraging the opportunities we see in the sector, this quarter we agreed to acquire Wellman's U.S. PET business and expect to close this transaction in 2H11.”
“Nemak also performed well, as supply chain issues primarily affected Japanese plants while American OEMs, our main clients, increased their output.”
“At Sigma, volumes increased across all product lines, generating EBITDA growth during the quarter.”
“Alestra, in turn, posted its seventh quarter of consecutive EBITDA growth. On July 12, 2011 we closed the acquisition of AT&A's 49% equity stake in Alestra and are now the company's sole shareholder.”
“Finally, the drilling program at Newpek continues to accelerate, with most of the production coming from more profitable liquids instead of dry gas.”
During the quarter, Net Debt increased by U.S. $106 million, reaching U.S. $3,544 million. Despite of the above, Net Debt to LTM EBITDA and Interest Coverage improved to 2.4 times and 5.5 times, respectively.
ALFA is a Mexican company comprising four business groups: Alpek (petrochemicals), Nemak (high tech aluminum auto components), Sigma (refrigerated food) and Alestra (telecommunications). ALFA is the world's leading manufacturer of high-tech aluminum engine heads and blocks. It is one of the world's largest producers of PTA, a petrochemical product, and has a leading market share in other petrochemicals in Mexico.
In addition, ALFA is Mexico's leading producer of processed meats and cheese and one of the most important telecommunications services companies in Mexico. For 2010, ALFA reported revenues of U.S. $10.8 billion, and EBITDA of U.S. $1,260 million. Currently, ALFA has manufacturing operations in 16 countries and employs more than 56,300 people.
ALFA S.A.B. de C.V. (ALFA)
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