October 20, 2011
ALFA Reports 46% Gain in Revenues and 40% Increase in EBITDA Year-on-Year
Monterrey, N.L. Mexico. October 20, 2011.-ALFA, S.A.B. de C.V. (ALFA), one of Mexico’s leading industrial companies,
announced today unaudited results for the third quarter of 2011 (3Q11). Consolidated revenues were U.S. $3,912
million and represented a 46% year-on-year increase and a 3% gain on a sequential basis. EBITDA totaled to U.S. $446
million, up 40% year-on-year and slightly above 2Q11.
“ALFA reported a good
performance in 3Q11. Revenue
and EBITDA increased year-onyear across all businesses,
reflecting their leading market
positions and the careful
execution of their strategies,”
said Alvaro Fernandez, ALFA’s
President.
Selected Financial Information
(U.S. $ Millions)
Consolidated Revenues
Alpek
Nemak
Sigma
Alestra
Newpek
Consolidated EBITDA
Alpek
Nemak
Sigma
Alestra
Newpek
Majority Net Income
Capex & Acquisitions
Net Debt
Net Debt to EBITDA*
Interest Coverage*
*LTM
3Q11
3,912
2,020
896
843
99
12
446
227
90
99
34
8.4
(39)
343
3,573
2.2
5.4
2Q11
3,786
1,887
941
862
98
8.8
445
205
102
110
34
5.7
182
94
3,544
2.4
6.4
3Q10
2,679
1,196
704
664
90
2.4
318
130
84
75
30
1.4
61
681
3,006
2.5
2.5
Q/Q
% Chg.
3
7
(5)
(2)
1
36
0
11
(11)
(10)
0
47
(121)
339
1
Y/Y
% Chg.
46
69
27
27
9
384
40
75
8
33
12
473
(164)
(47)
19
YTD
‘11
11,184
5,584
2,731
2,494
292
26.6
1,297
608
292
311
100
18
346
1,168
3,573
Commenting on the
sequential performance, Mr.
Fernandez noted that: “Alpek
continued to enjoy strong
demand and healthy margins,
which contributed to an 11%
increase in EBITDA generation.
Nemak’s quarterly output was
nine million units, but
expenses related to new
product launches negatively
impacted profitability. While
Sigma’s volumes rose, the
depreciation of the peso
reduced EBITDA by 10%. Alestra launched new cloud IT services and EBITDA generation remained high. Newpek
connected to sales 32 new liquid-rich wells and grew EBITDA by 47%. In addition, we closed two acquisitions in the
third quarter: the purchase of AT&T’s stake in Alestra, and the acquisition of Wellman’s U.S. PET business,” he
concluded.
YTD
‘10
7,860
3,578
2,107
1,837
266
9.4
920
359
281
208
86
5.8
210
755
3,006
On the financial side, ALFA refinanced U.S. $1 billion of debt at Nemak, which allowed it to strengthen its financial
condition and extend the average maturity of the debt. Net debt to EBITDA ratio improved to 2.2 times from 2.4
times despite capital expenditures and acquisitions made during the quarter.
3Q11 majority net loss totaled U.S. $39 million. The main reason behind this loss was a negative comprehensive
financial expense in the amount of U.S. $ 283 million, which reflected non-cash exchange losses produced by the 13%
depreciation of the peso during the quarter, and other non-cash financial losses. The 3Q11 loss compares to net
income of U.S. $61 million in 3Q10, when the peso appreciated vis-à-vis the U.S. Dollar.
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 shares are quoted on the
Mexican Stock Exchange and on Latibex, the market for Latin American shares of the Madrid Stock Exchange.
YTD
% Chg.
42
56
30
36
10
182
41
69
4
50
17
210
65
55
19
October 20, 2011
For further information:
Enrique Flores
Vice President, Corporate Communications
ALFA, S.A.B. de C.V.
Phone + 52 (81) 8748-1207
eflores@alfa.com.mx
October 20, 2011
About ALFA
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 shares are quoted on the
Mexican Stock Exchange and on Latibex, the market for Latin American shares of the Madrid Stock Exchange.
About AT&T
AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates – AT&T operating
companies – are the providers of AT&T services in the United States and around the world. With a powerful array of
network resources that includes the nation’s fastest mobile broadband network, AT&T is a leading provider of wireless,
Wi-Fi, high speed Internet, voice and cloud-based services. A leader in mobile broadband and emerging 4G capabilities,
AT&T also offers the best wireless coverage worldwide of any U.S. carrier, offering the most wireless phones that work in
the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T │DIRECTV brands. The
company’s suite of IP-based business communications services is one of the most advanced in the world. In domestic
markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are
subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future
results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to
update or revise statements contained in this news release based on new information or otherwise.
For further information:
Enrique Flores
Vice President, Corporate Communications
ALFA, S.A.B. de C.V. | Phone + 52 (81) 8748-1207 | eflores@alfa.com.mx
Darío Cutin for AT&T Corporate Communications
Phone | 305-520-9004 | dcutin@attnews.us
McCall Butler for AT&T Corporate Communications
Phone | (917) 209-5792 | mbutler@attnews.us