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Mirgor Earnings Release 2006
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Download source fileCONTACT IN BUENOS AIRES
Fabio Rozenblum
Mirgor S.A.C.I.F.I.A. Tel: (54-11) 6394-2826
MIRGOR REPORTS RESULTS FOR THE THIRD QUARTER OF 2006
Buenos Aires, November 13th, 2006 - MIRGOR S.A.C.I.F.I.A., (“Mirgor or “the Company”), Argentina's largest autoparts company listed on the Buenos Aires stock exchange, announced today its results for the 3rd quarter of fiscal year 2006, ended on September 30th, 2006. All figures were prepared according to generally accepted accounting principles in Argentina in Pesos as of September 30th, 2006. The closing rate of exchange was P$3.062=US$ 1.0.
For the quarter ended September 30th, 2006, the Company reported a net profit of P$ 11.32 million, compared to a net profit of P$ 6.36 million calculated for the same period of the previous year. The Company’s gross margin for the quarter ended on September 30th, 2006 was P$ 25.32 million compared to P$13.68 reported for the same period of last year, a 85.1% increase.
For the quarter ended September 30th, 2006 sales increased 119.2% to P$173.4 million, from P$ 79.1 million for the same quarter of the previous year. The major reason for this growth has been the increase of residential air conditioning sales. However, automobile product sales had a big increase which was higher than car production growth due to an increase in the Company´s market share.
Air-conditioning unit sales for the quarter were 52,782, a 121.2% increase compared to 23,857 units sold in the same period of last year. Non-air-conditioning units sales were 9,035 an increase of 6.4%, compared to 8,493 units sold during the same period of the previous year. The modest increase responds to a larger than ever penetration of A/C´s in Argentina´s car production, which reached 85% during this quarter.
During the period, Mirgor also delivered 3,660 instrument panels to Volkswagen Argentina, a 46% decrease compared to the 6,721 units delivered in the third quarter of 2005. VW has reduced the production of Polo cars in favor of the Suran, in order to be able to cover the strong demand of the newly introduced vehicle.
The Company’s administrative expenses increased to P$5.8 million from P$ 2.65 million, a 118.9% increase over the same period of last year. The expenses reported this quarter include Directors Fees corresponding this quarter and part of last year, as they were voted in the last shareholders meeting.
Selling expenses increased during the quarter ended September 30th, 2006 to P$4.97 million from P$2.00 million reported during the same period of last year, a 148.5% increase as a result of the higher volumes that have to be transported by the Company and inflation based adjustments.
Other income/(expenses) was, (P$ 0.03) million, compared to (P$ 0.8) million on the same quarter of 2005
Financial results for the third quarter ended September 30th, 2006 were P$ (2.80) million, compared to P$(1.7), reported during the same period of the previous year. The negative result was most influenced by a provision for inventory depreciation which the Company will try to reverse in the coming months.
CEO´s Statement
Mr. Roberto Vazquez, Chief Executive Officer of Mirgor, stated, “ Our markets have been growing very well and we are also profiting from the launch of new products in all our lines.
In the auto industry air conditioning penetration is stronger than it has ever been in the history of the Company. The new vehicles introduced in production by the car manufacturers are aimed for a higher segment of the market and we are benefiting from this decisions.
Residential air conditioning continues to increase its part on our sales figures as local demand continues to grow and local production replaces imports.
Our main problem this year has been the price negotiations with our customers in the auto industry. Most costs increased and there have been very tight discussions, which were made more difficult by the price controls of cars.
We are working on technical proposals to be able to offset these higher costs”