Grupo KUO Business report FY2006
|( in millions of US dollar )||FY2007||FY2006||Rate of Change||Factors|
|Net Sales||456.0||467.4||(2.4%)||See "Factors".|
Year over year sales decreased 2.4% from 2007 to 2006, due to lower sales to the Company’s main clients, primarily in the transmissions business, as a result of the slowdown in the U.S. automotive industry. In addition, the decline reflected extraordinary events such as the technical stoppages at some carmakers (GM and Ford) and the drop in requirements due to the PEMEX pipeline explosions that affected the Celaya and Queretaro plants.
Operating income totaled US $17.5 million, an 18.3% increase from 2006, while EBITDA rose 9.3% to US $39.6 million, as a result of stronger performance in the stamping, painting, and assembly business, and the growth in the range of products in the spare parts market (engine and brake). Operating efficiencies were able to offset the increase in the prices of raw materials, leading to better margin performance in the year.
-Through the DESC-CIE joint venture, in conjunction with CIE Automotive, the acquisition of Nugar S.A de C.V.was completed on March 16, 2007. Nugar is a company that produces autoparts associated with mechanized, stamping and assembly technologies. The total value of the transaction was US $75 million.
As a result of the transaction, CIE DESC Automotive, S.A. de C.V. holds 13.87% of the shares of Nugar, acquired through a capital contribution by its stockholders received on that same date, while the remaining 86.13% was directly acquired by CIE Bérriz, S.L..
-In October 2007, the Company concluded the acquisition of Grupo Duroplast’s plants in Ramos Arizpe, Coahuila (“DRA”), through its CIE-DESC joint venture.
DRA is a company that is dedicated to the production, sale and marketing of plastic
injection molding equipment, as well as assembly technologies, with annual sales of
US $55 million in 2006.