Monterrey, N.L., Mexico, October 15, 2009 - ALFA, S.A.B. de C.V. (ALFA) one of Mexico's largest industrial conglomerates, reported today its 3Q09 financial results.
Of particular note was a quarterly EBITDA of U.S. $290 million, the highest level in the company´s history. Also, net debt was reduced by U.S. $150 million, or 6%, during the quarter and the Net Debt to EBITDA ratio improved to 2.1 times.
"All ALFA companies reported excellent operating performances, resulting in our best quarter ever in EBITDA terms,” commented Dionisio Garza Medina, ALFA´s Chairman of the Board and CEO. He added: "We were able to achieve these results thanks to the strategic strengths of our businesses: market leadership, state-of-the-art technology, scale and cost competitiveness, distribution capacity and brand recognition. As we stated last February, such strengths allowed us to be confident that we could successfully tackle the economic crisis, and emerge from it ready to take advantage of a new growth cycle.”
Moreover, ALFA further reinforced its financial condition during the quarter, as subsidiaries Alestra and Petrotemex issued two 144a senior unsecured bonds by a total of U.S. $400 million, whose proceeds were used to prepay debt with a shorter maturity. Likewise, subsidiary Nemak extended the repayment period of its debt.
ALFA is a Mexican company comprising four business groups: Alpek (petrochemicals), Nemak (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. In 2008, ALFA reported revenues of $116,190 million pesos (U.S. $10.6 billion), including foreign sales of U.S. $5.8 billion, and assets of $110,970 million pesos (U.S. $8.2 billion). Currently, ALFA has manufacturing operations in 17 countries and employs more than 50,000 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.