Grupo KUO Business report FY2006
Business Highlights
( in millions of US dollar ) | FY2007 | FY2006 | Rate of Change | Factors |
Overall | ||||
Net Sales | 1,922.8 | 1,844.5 | 4.2% | - |
Operating Profit | 57.2 | 77.8 | (26.5%) | |
EBITDA | 136.3 | 154.2 | (11.6%) | |
Automotive | ||||
Net Sales | 456.0 | 467.4 | (2.4%) | See "Factors". |
Operating Profit | 17.5 | 14.8 | 18.3% | |
EBITDA | 39.6 | 36.2 | 9.3% |
Factors
Automotive
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.
Acquisitions
-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.