SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15b-16
of the Securities Exchange Act of 1934
May 11, 2004
Commission File Number 1-12752
Glassworks of Chile
(Translation of registrant's name into English)
Hendaya 60
Las Condes
Santiago, Chile
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F /X/ Form 40-F / /
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes / / No /X/
CRISTALERIAS DE CHILE (THE "COMPANY")
REPORT ON FORM 6-K
TABLE OF CONTENTS
1. A free English translation of a press release dated May 11, 2004.
[GRAPHIC OMITTED]
FOR IMMEDIATE RELEASE
NYSE: CGW
Santiago: CRISTALES
www.crlstalchile.com
CONTACT IN SANTIAGO:
Ricardo Dunner
Head of Investor Relations
PH: (562) 787-8855
FAX: (562) 787-8800
EMAIL: ir@cristalchile.cl
CRISTALERIAS DE CHILE REPORTS ITS RESULTS FOR
FIRST QUARTER 2004
Santiago, Chile (May 10th, 2004) - Cristalerias de Chile S.A.
("Cristalerias"), a Chilean conglomerate and the largest producer of glass
containers in Chile, today announced its results for the first quarter ended
March 31st, 2004. All figures have been prepared according to Chilean GAAP and
are stated in constant Chilean Pesos and in US Dollars at Ch$616.41/US$1, the
exchange rate at the close of March 31st, 2004.
1Q04 HIGHLIGHTS (vs. 1Q03):
o Consolidated sales decreased 5.0%
o Operating income down 28.4%
o EBITDA down 16.1%
o Non-operating loss of Ch$1,317 million in 1Q04, compared to a loss of
Ch$1,052 million in 1Q03.
o Net income reached Ch$2,567 million, compared to Ch$4,321 million income
reported in 1Q03.
o Earnings Per ADR reached US$0.20
CONSOLIDATED REVENUE
(in Ch$ millions) 1Q04 1Q03 1Q04vs.1Q03
---- ---- -----------
TOTAL REVENUE 33,606 35,372 -5.0%
Cristalchile (glass containers) 15,387 17,448 -11.8%
Vina Santa Rita (wine) 14,586 14,928 -2.3%
CIECSA (media) 4,904 4,355 12.6%
Adjustments 1,271 1,359 N/A
RELATED COMPANIES
Metropolis-Intercom (cable) 10,782 10,780 0%
Envases CMF (plastic containers) 7,839 8,857 -11.5%
FIRST QUARTER 2004 RESULTS
CONSOLIDATED RESULTS
Operating Results
During 1Q04, Cristalerias' total consolidated revenue reached Ch$33,606
million (US$54.5 million), a 5.0% decrease compared to 1Q03. The factors
behind this decrease were lower sales in the glass container business (-11.8%)
and Santa Rita (-2.3%); partially offset by higher sales at CIECSA (+12.6%).
Adjustments for factors such as intercompany sales reached Ch$1,271 million
during the quarter.
1Q04 Revenue Breakdown
----------------------
Glass 44.1%
Wine 41.8%
Media 14.1%
Consolidated operating income decreased by 28.4% during the quarter, totaling
Ch$5,325 million (US$8.6 million). This includes Ch$4,289 million from the
glass container business (Ch$5,850 million in 1Q03) and Ch$1,059 million from
Santa Rita (Ch$1,650 million in 1Q03). CIECSA, in turn, had a Ch$50 million
operating loss (Ch$161 million loss in 1Q03).
During the quarter, Cristalerias' consolidated net income was Ch$2,567 million
(US$4.2 million), compared with Ch$4,321 million (US$7.0 million) in 1Q03.
This is explained by the abovementioned lower operating results in the glass
business and Santa Rita, in addition to a higher non-operating loss, that
passed from Ch$1,052 million (US$1.7 million) in 1Q03 to Ch$1,317 million
(US$2.1 million) in 1Q04. The latter is mainly explained by a higher net loss
from subsidiaries that do not consolidate. It reached Ch$1,710 million in
1Q04, compared to Ch$1,101 million loss in 1Q03, mainly due to a lower result
at Metropolis-Intercom and Envases CMF. The net loss from subsidiaries
includes a Ch$1,040 million charge (Ch$1,034 million charge in 1Q03)
corresponding to goodwill amortization, which does not constitute cash flow.
EBITDA: Operating cash generation decreased by 16.1% reaching Ch$9,130 million
(US$14.8 million). EBITDA margin for the period was 27.2% (30.8% in 1Q03).
The following analysis explains Cristalerias' results based on individual
financial statements, as well as those of its main subsidiaries:
2
PACKAGING BUSINESS
Glass
The Company's glass packaging sales decreased by 11.8% compared with 1Q03
reaching Ch$15,387 million (US$25.0 million). Volume sales decreased by 2.4%,
totaling `56,856 tons. Wine bottle sales increased by 2.4%, mainly due to an
increase in export volumes. Soft-drink bottle sales decreased by 5.7%, mainly
due to inventory build-up of returnable formats during year 2003 (237cc
crown-top bottle), partially compensated by an increase of one-way formats
sales. Beer bottle sales decreased by 63.5%, mainly due to changes in clients'
pricing policy for one-way formats, as well as clients' inventory build up
during late 2003. Liquor bottle sales decreased by 17.9% compared to 1Q03
mainly because during that quarter clients made inventory build up for the
launching of a 700cc format for pisco. Containers for the food industry posted
a 1.7% increase due to an increase in market share of formats offered by the
Company.
GLASS
1Q04 1Q03 1Q04 vs. 1Q03
---- ---- -------------
Net Sales (in Ch$ millions) 15,387 17,448 -11.8%
Wine 10,660 10,410 2.4%
Soft Drinks 2,055 2,178 -5.7%
Beer 1,107 3,029 -63.5%
Liquor 1,045 1,273 -17.9%
Food 456 448 1.7%
Pharmaceutical 64 110 -42.0%
Volume in tons 56,856 58,267 -2.4%
Operating income decreased by 26.7%, totaling Ch$4,289 million (US$7.0
million), due to the lower sales volume as well as a 9.6% decrease in average
prices, which is mainly explained by the strong appreciation of the Chilean
Peso against the American Dollar, that passed from an average of
Ch$736.99/US$1 in 1Q03 to Ch$587.29/US$1 in 1Q04. Operating margin was 27.9%
(33.5% in 1Q03).
Non-consolidated net earnings for 2004 include a non-operating loss of
Ch$1,239 million (US$2.0 million), compared to a non-operating loss of Ch$499
million (US$0.8 million) in 1Q03. During the quarter the Company registered a
higher net loss from subsidiaries that reached Ch$1,325 million, compared to
an Ch$888 million loss in 1Q03. The latter is mainly explained by a higher
loss from Cristalchile Comunicaciones (50% owner of Metropolis-Intercom) and a
lower income from Envases CMF; partially compensated by a higher income from
Vina Santa Rita and Cristalchile Inversiones (40% owner of Rayen Cura) and a
lower loss from CIECSA.
EBITDA: Operating cash generation reached Ch$6,879 million (US$11.2 million),
compared to Ch$8,151 million (US$13.2 million) in 1Q03. EBITDA margin was
44.7% (46.7% in 1Q03).
3
Plastic
During the first quarter of 2004, Envases CMF posted a net income of Ch$372
million (US$0.6 million), compared to Ch$546 million (US$0.9 million) in 1Q03.
Total sales reached Ch$7,839 million (US$12.7 million), compared to Ch$8,857
million (US$14.4 million) in 1Q03. Volumes reached 5,844 tons (6,079 tons in
1Q03), due to lower preforms exports and lower one-way formats sales; while
average prices decreased by 7.9% influenced by the exchange rate variation.
Operating income reached Ch$740 million (US$1.2 million), compared to Ch$1,174
million (US$1.9 million) in 1Q03.
EBITDA: Operating cash generation was Ch$1,809 million (US$2.9 million) in
1Q04, compared to Ch$2,302 million (US$3.7 million) in 1Q03. EBITDA margin was
23.1% (26.0% in 1Q03).
4
WINE BUSINESS
During 1Q04, Santa Rita's consolidated sales totaled Ch$14,586 million
(US$23.7 million), compared to Ch$14,928 million (US$24.2 million) in 1Q03.
The Company's profits came in at Ch$1,383 million (US$2.2 million), 14.7% over
1Q03, due to an improved non-operating result.
In the domestic market, Santa Rita's prices increased by 8.2% in real terms,
while volumes decreased by 3.4%. These conditions led net sales in the
domestic market to grow by 4.5%.
Sales volume in the export market grew by 5.2%, mainly due to higher sales to
the European and Latin American markets. During the quarter, exports at
US$12.9 million accounted for 52.2% of total revenues. The average price in
Dollars per case in the export market for Santa Rita was US$34.9 (US$31.4 in
1Q03), compared with an industry average of US$24.4 (US$23.5 in 1Q03).
By markets, the export increase breakdown is as follows: Europe, 33.7%; Latin
America, 35.1%; Asia plus Africa, 14.5%; partially offset by lower sales to
USA, -29.8% and Canada, -29.5%.
SANTA RITA
1Q04 1Q03 1Q04 vs. 1Q03
---- ---- -------------
Net Sales (in Ch$ millions) 14,586 14,928 -2.3%
Exports 7,615 8,137 -6.4%
Domestic 6,549 6,266 4.5%
Others 422 525 -19.6%
Volume
Exports (Th cases) 368 350 5.2%
Domestic (Th liters) 12,483 12,927 -3.4%
Price_ per case - Export Mkt.( US$) 34.9 31.4 11.2%
Avg. price per case - Domestic Mkt. (Ch$) 4,725 4,365 8.2%
Operating income decreased by 35.8% to Ch$1,059 million (US$1.7 million) in
1Q04. Operating margin was 7.3% (11.1% in 1Q03), mainly due to higher costs of
musts and higher expenses for marketing support.
EBITDA: Operating cash generation reached Ch$2,081 million (US$3.4 million)
during the quarter, compared to Ch$2,606 million (US$4.2 million) in 1Q03.
EBITDA margin was 14.3% (17.5% in 1Q03).
5
MEDIA BUSINESS
Television Broadcasting, Financial Printed Press and Other Media
Media Subsidiaries
-------------------------------------------------------------------------------
CGW
-------------------------------------------------------------------------------
| |
98.5% | | 99.9%
| |
----------------------------------------- --------------------------------
CIECSA Cristalchile Comunicaciones
----------------------------------------- --------------------------------
| | |
99.9% | | 37.4% | 50.0%
| | |
------------------ | --------------------------------
MEGA | Cordillera Comunicaciones
------------------ | --------------------------------
| | |
| | | 99.95%
| | |
----------------------------------------- --------------------------------
Diario Financiero Metropolis Intercom
----------------------------------------- --------------------------------
During 1Q04, CIECSA reported a net loss of Ch$300 million 98.5% ;US$0.5
million) compared to a net loss of Ch$445 million (US$0.7 million) in 1Q03.
MEGA, CIECSA's main subsidiary, reached the first place in audience share with
an average viewership share of 25.3% during the quarter (22.9% in 1Q03)(1).
Net sales increased by 11.7% over 1Q03 reaching Ch$4,837 million (US$7.8
millin), as a higher viewership share has resulted in higher revenues. MEGA
had a Ch$65 million operating loss compared to a Ch$90 million operating loss
in 1Q03. Mega posted a Ch$238 million net loss, compared with a net loss of
Ch$248 million in 1Q03.
EBITDA: CIECSA's operating cash generation reached Ch$142 million (US$0.2
million) in 1Q04, compared to Ch$76 million (US$0.1 million) in 1Q03. EBITDA
margin reached 2.9% (1.8% in 1Q03).
Cable Television
Cristalchile Comunicaciones S.A., (Cristalerias' wholly-owned subsidiary),
owner of 50% of Cordillera Comunicaciones Ltda. had a net loss of Ch$2,151
million (US$3.5 million) during the quarter compared to a net loss of Ch$1,505
million (US$2.4 million) recorded during 1Q03. Similarly, Cordillera
Comunicaciones Ltda. (owner of 99.9% of MetropolisIntercom S.A.) had a net
loss of Ch$4,136 million (US$6.7 million), compared to a net loss of Ch$3,007
million (US$4.9 million) in 1Q03. The aforementioned result includes a
goodwill amortization charge of Ch$1,040 million (Ch$1,034 million charge in
1Q03).
--------
1 Measured between 7:30AM and 1:30AM (i.e.: 18 hours daily) from Monday
through Sunday.
6
In 1Q04 Metropolis-Intercom S.A. posted sales of Ch$10,782 million (US$17.5
million), flat compared with 1Q03. The Company posted a net loss of Ch$3,103
million (US$5.0 million) compared to a net loss of Ch$1,973 million (US$3.2
million) in 1Q03. This lower result is mainly due to a Ch$775 million (US$1.3
million) one-time expense that affects the non-operating result of the
company. EBITDA reached Ch$1,641 million (US$2.7 million) in 1Q04 (Ch$1,614
million in 1Q03). The latter includes a Ch$3,587 million (US$5.8 million)
depreciation charge in 1Q04 (Ch$3,204 million depreciation charge in 1Q03),
mainly coming from the HFC network acquired in July 2000. Metropolis-Intercom
ended the period with 223,957 basic subscribers (6.7% below 1Q03). However,
during 1Q04 premium subscribers increased by 5.2% with respect to 1Q03,
reaching 35,514. Broad Band Internet customers reached 36,883, 42.3% over
1Q03. Internet Protocol Telephone customers reached 6,376 at the end of the
period.
METROPOLIS-INTERCOM
03/31/04 12/31/03 1Q04 vs. 1Q03
-------- -------- -------------
Basic Subscribers (1) 223,957 231,925 -3.4%
Premium customers 35,514 31,499 12.8%
Internet customers 36,883 34,462 7.0%
IP Telephone customers 6,376 3,639 75.2%
Home Passed 1,195,479 1,192,891 0.2%
1Q04 1Q03 1Q04 vs.1Q03
---- ---- ------------
Sales (Ch$ Million) 10,782 10,780 0%
EBITDA (Ch$ Million) 1,641 1,614 1.7%
Net Income (Loss) (Ch$ Million) (3,103) (1,973) -57.3%
----------
(1) Includes Premium, Internet and IP Telephone customers
#############
This release may contain certain forward-looking statements (as that term is
used in U.S. securities laws) regarding anticipated results of operations,
financial condition, business operations or strategy of Cr/stalerias de Chile
or its consolidated subsidiaries. Forward-looking statements may be identified
by the use of words such as "anticipates," "believes," "expects," "predicts,"
"intends," "estimates," "should" or "may" or similar expressions relating to
statements that are not of historical facts. Such forward-looking statements
are believed to be reasonable, but are not guarantees of future performance.
Actual results could vary from our objectives or expectations due to many
factors including, among others, changes in consumer beverage preferences, new
technologies, a downturn in the Chilean wine industry, significant disruption
of the Chilean media market, the macroeconomic performance of Chile and the
behavior of Latin American markets more generally.
7
[LOGO] Cristachile
CRISTALERIAS DE CHILE S.A.
CONSOLIDATED FINANCIAL STATEMENTS
(Restated for general price-level changes and expressed in millions of
Chilean Pesos as of March 31, 2004)
1 US Dollar = 616.41 Chilean Pesos
BALANCE SHEET
As of March 31
--------------
2004 2003
ASSETS MCh$ MCh$
------ ---- ----
Cash, time deposits, marketable securities 90,272 106,549
Receivables 36,770 38,546
Inventories, net 38,988 41,119
Other current assets 7,331 3,781
------- -------
TOTAL CURRENT ASSETS 173,361 189,996
------- -------
NET P.P.&E. 134,559 131,657
------- -------
Investment in related companies 101,013 108,430
Long-term receivables 9,162 9,867
Goodwill on investments 805 822
Accounts receivable, related companies 4 2
Others 24,067 27,011
------- -------
TOTAL OTHER ASSETS 135,051 146,131
------- -------
TOTAL ASSETS 442,971 467,783
------- -------
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current portion of long-term & short-term debt 5,290 5,973
Dividends payable 41 79
Accounts and notes payable 17,668 27,083
Provisions, withholdings, income taxes 15,452 12,536
Advances from customers 2,738 2,534
------- -------
TOTAL CURRENT LIABILITIES 41,190 48,205
------- -------
Long-term bank liabilities and bonds payable 123,075 133,410
Miscellaneous creditors 208 1,215
Provisions and others 9,938 10,397
------- -------
TOTAL LONG-TERM LIABILITIES 133,220 145,023
------- -------
MINORITY INTEREST 38,120 37,469
------- -------
TOTAL SHAREHOLDERS' EQUITY 230,441 237,087
------- -------
TOTAL LIAB. & SHAREHOLDERS' EQUITY 442,971 467,783
------- -------
STATEMENT OF INCOME
-------------------
First quarter
-------------
2004 2003
MCh$ MCh$
---- ----
OPERATING RESULTS:
Net sales 33,606 35,372
Cost of sales (22,385) (22,553)
Selling and administrative expenses (5,896) (5,384)
------- -------
OPERATING INCOME 5,325 7,435
------- -------
NON-OPERATING RESULTS:
Cordillera Comunicaciones Ltda (2,140) (1,504)
Editorial Zig-Zag 50 (31)
Vinn"a Los Vascos S.A. 50 109
Raven Cura S.A.I.C. 237 167
Envases CMF 186 273
Ediciones Chiloe (94) (115)
Others - -
------- -------
Equity in net income related companies
(net) (1,710) (1,101)
Interest income (expense) net (1,074) (1,209)
Other nonrecurring income (net) (82) (399)
Amortization of goodwill (159) (162)
Price-level restatement 345 156
Exchange Rate Variations 1,364 1,662
------- -------
NON-OPERATING INCOME (1,317) (1,052)
------- -------
Income tax (815) (1,521)
Extraordinary Items - -
Minority interest (626) (541)
------- -------
NET INCOME 2,567 4,321
------- -------
8
[LOGO] Cristachile
CRISTALERIAS DE CHILE S.A.
INDIVIDUAL FINANCIAL STATEMENTS
(Restated for general price-level changes and expressed in millions of
Chilean Pesos as of March 31, 2004)
1 US Dollar = 616.41 Chilean Pesos
BALANCE SHEET
As of March 31
--------------
2004 2003
ASSETS MCh$ MCh$
------ ---- ----
Cash, time deposits, marketable securities 71,878 82,702
Receivables 19,988 20,856
Inventories, net 5,995 5,944
Other current assets 2,681 1,726
------- -------
TOTAL CURRENT ASSETS 100,542 111,228
------- -------
NET P.P.&E. 75,151 72,896
------- -------
Investment in related companies 143,881 144,225
Long-term receivables 122 161
Goodwill on investments 1,841 2,011
Accounts receivable, related companies 20,667 22,598
Others 11,394 13,385
------- -------
TOTAL OTHER ASSETS 177,904 182,381
------- -------
TOTAL ASSETS 353,597 366,505
------- -------
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current portion of long-term debt 889 1,194
Dividends payable 40 77
Accounts and notes payable 4,404 7,775
Provisions, withholdings, income taxes 9,534 6,296
------- -------
TOTAL CURRENT LIABILITIES 14,8681 15,3421
------- -------
Long-term bank liabilities and bonds payable 99,786 105,391
Miscellaneous creditors 153 242
Provisions 6,002 6,063
Others 2,347 2,380
------- -------
TOTAL LONG-TERM LIABILITIES 108,288 114,076
------- -------
TOTAL SHAREHOLDERS' EQUITY 230,441 237,0871
------- -------
TOTAL LIAB. & SHAREHOLDERS' EQUITY 353,597 366,505
------- -------
STATEMENT OF INCOME
-------------------
First quarter
-------------
2004 2003
MCh$ MCh$
---- ----
OPERATING RESULTS:
Net sales 15,387 17,448
Cost of sales (9,791) (10,363)
General and administrative expenses (1,307) (1,236)
------- -------
OPERATING INCOME 4,289 5,850
------- -------
NON-OPERATING RESULTS:
CristalChile Corn unicaciones (2,151) (1,505)
S.A. Vina Santa Rita 748 652
Envases CMF S.A. 185 273
Ciecsa S.A. (296) (437)
Cristalchile Inversiones S.A. 187 130
Others (0) (0)
------- -------
Equity in net income related companies (net) (1,325) (888)
Interest income (net) (635) (801)
Other nonrecurring income (net) (120) (141)
Amortization of goodwill (43) (43)
Price-level restatement 154 38
Exchange Rate Variations 730 1,336
------- -------
NON-OPERATING INCOME (1,239) (499)
------- -------
Income tax (484) (1,029)
Amortization of negative goodwill - -
Extraordinary Items - -
------- -------
NET INCOME 2,567 4,321
------- -------
SALES VOLUME Th Tons Th Tons
------- -------
Glass sales in Th tons 56.9 58.3
------- -------
9
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized in the city of Santiago, Chile.
Glassworks of Chile
(Registrant)
By: /s/ Benito Bustamante C.
------------------------
Benito Bustamante C.
Controller
Date: May 11, 2004