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From:
International Briquettes Holding, IBH
Subsidiary of Siderúrgica Venezolana SIVENSA S.A.C.A.
Contacts: Mrs. Isabel Camejo / Mr. Maury Bedoni
Investor Relations
Telephones: (02) 707.61.45 / 707. 64.49 Telefax: (02) 762.99.38
/ 707. 64.26
E-mail: ir_dept@sivensa.com
FOR IMMEDIATE DISTRIBUTION: |
IBH REPORTS THIRD QUARTER 1999 RESULTS
Caracas, July
30, 1999…International Briquettes Holding (IBH), a company engaged
in the production and sale of iron-ore briquettes, reported sales
of US$ 15.4 million and an operating loss of US$ 3.5 million for
the third quarter ended June 30, 1999. The net loss for the period
was US$ 2.7 million.
Venprecar's sales of briquettes during the April to June quarter
of this year totaled 172,004 MT. During the same quarter last year,
sales were 174,661 MT.
Compared to the January-March second quarter, the April to June
period registered a decrease in operating costs owing to the reduction
in the international price of iron ore and operating improvements
at Venprecar
For the nine months of the fiscal year, sales were US$ 31.6 million
with an operating loss of US$ 11.7 million.
Orinoco Iron
Regarding the Orinoco Iron project, as of June 30, 1999 the project
was 82% complete and on schedule to start up the first module in
December of this year. From a budgetary standpoint, 93% of the total
cost of US$ 816.7 million has been committed, and 77% has already
been paid.
FINMET Technology in Australia
Our partner, The Broken Hill Proprietary (BHP) inaugurated the world's
first FINMET plant in July, in Port Hedland, Australia. The FINMET
technology was patented by Brifer, a subsidiary of IBH (and, in
turn, a subsidiary of Sivensa's) and VAI Technology from Austria
and offers production cost advantages over other proven direct reduction
technologies. The FINMET plant in Australia, with an annual capacity
of 2.4 million MT, has met expectations regarding product quality
and has begun to sell output, mainly to the Asian markets. International
Briquettes Holding (IBH) produces iron-ore briquettes for sale mainly
in foreign markets. IBH holds 98.9% of Venprecar and 50% of Operaciones
RDI. Its operations are strategically located to take advantage
of the low cost of inputs needed to produce HBI such as iron-ore
and natural gas. In association with the Australian company, BHP,
IBH is currently building a 2.2 million MT/year plant in Puerto
Ordaz, Venezuela that will use the FINMET technology |
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International
Briquettes Holding, IBH
Subsidiary of Siderúrgica Venezolana "SIVENSA", S.A.C.A.
US GAAP Financial Statements
Consolidated Balance Sheet
In Thousand Of US $ |
|
|
|
June
30,
|
| ASSETS |
1999
|
1998
|
|
Current
assets:
|
|
|
| Cash
and Temporry investments |
376
|
16.597
|
| Accounts
receivable |
8.583
|
8.977
|
| Accounts
receivable draw back and I.C.S.V.M. |
5.234
|
1.313
|
| Other
accounts receivable |
1.403
|
1.738
|
| Advances
to suppliers |
219
|
1.202
|
| Inventories |
14.066
|
13.768
|
| Prepaid
expenses, deferred tax and other |
746
|
1.818
|
|
TotalCurrent
assets
|
30.627
|
45.413
|
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|
|
| Guarrante
deposits |
95
|
4.515
|
| Property,
plant and equipment, net |
128.163
|
129.048
|
| Long
Term account receivable |
48.055
|
53.641
|
| Investments |
67.723
|
49.085
|
| Deferred
charges and other assets |
7.601
|
6.750
|
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|
| TOTAL
ASSETS |
282.264
|
288.452
|
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| LIABILITIES
AND SHAREHOLDER'S EQUITY |
|
|
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|
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Current
Liabilities:
|
|
|
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|
|
| Funds
from related companies |
4.049
|
0
|
| Accounts
payable |
12.727
|
11.447
|
| Accounts
with related companies |
1.507
|
89
|
| Dividend
payable |
244
|
241
|
| Profit
sharing, vacations and other personnel acruals |
598
|
835
|
| Taxes |
168
|
1.038
|
| Other
current liabilities |
246
|
430
|
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|
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Total
Current Liabilities
|
19.539
|
14.080
|
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|
| Accrued
employees termination benefits, net, of advances and loans
to employees |
478
|
1.138
|
| Deferred
Charges |
3.221
|
1.196
|
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|
|
Total
Current Liabilities
|
23.238
|
16.414
|
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|
|
| Minority
Interest in subsidiaries |
3.049
|
3.190
|
| Shareholders'
equity |
255.977
|
268.848
|
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|
| TOTAL
LIABILITIES, AND SHAREHOLDER'S' EQUITY |
282.264
|
288.452
|
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International
Briquettes Holding, IBH
Subsidiary of Siderúrgica Venezolana "SIVENSA", S.A.C.A.
US GAAP Financial Statements
Consolidated Income Statements
In Thousand Of US $ |
|
|
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Nine
months ended june 30,
|
|
1999
|
1998
|
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|
|
| Net
sales |
31.585
|
66.784
|
| Cost
of sales |
(38587)
|
(52.889)
|
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|
|
|
|
Gross
profit (loss)
|
(7.002)
|
13.895
|
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| General
and administrative expenses |
(4.730)
|
(5.043)
|
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|
|
Operating
income (loss)
|
(11.732)
|
8.852
|
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|
| Foreign
exchange gain (loss), net |
27
|
(505)
|
| Interest
income (expenses), net |
6.010
|
6.592
|
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|
|
Total
Financing (Cost) Benefits
|
6.037
|
6.087
|
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|
|
| Equity
in results of affiliates |
(5.338)
|
(1.031)
|
| Other
income (expenses), net |
89
|
297
|
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|
|
|
Income
(loss) before taxes and minority interest
|
(10.944)
|
14.205
|
|
|
|
| Taxes |
(171)
|
(1.382)
|
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|
|
Income
(loss) before
minority interest
|
(11.115)
|
12.823
|
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| Minority
interest in affiliates |
118
|
(701)
|
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|
|
Net
Income loss
|
(10.997)
|
12.122
|
|
International
Briquettes Holding, IBH
Subsidiary of Siderúrgica Venezolana "SIVENSA", S.A.C.A.
US GAAP Financial Statements
Consolidated Income Statements
In Thousand Of US $ |
|
|
| |
|
|
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Quarters
ended june 30,
|
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1999
|
1998
|
| Net
sales |
15.390
|
22.414
|
| Cost
of sales |
(17.325)
|
(18.408)
|
|
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|
|
|
|
Gross
profit (loss)
|
(1.935)
|
4.006
|
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|
|
| General
and administrative expenses |
1.545
|
1.854
|
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|
|
|
Operating
income (loss)
|
(3.480)
|
2.152
|
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|
| Foreign
exchange gain (loss), net |
202
|
(5)
|
| Interest
income (expenses), net |
2.076
|
1.971
|
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|
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Total
Financing (Cost) Benefits
|
2.278
|
1.966
|
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|
| Equity
in results of affiliates |
(1.795)
|
(319)
|
| Other
income (expenses), net |
397
|
177
|
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|
|
|
Income
(loss) before taxes and
|
(2.600)
|
3.976
|
|
|
|
| Taxes |
(125)
|
(549)
|
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|
Income
(loss) before
minority interest
|
(2.725)
|
3.427
|
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|
|
| Minority
interest in affiliates |
28
|
(59)
|
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|
|
Net
Income loss
|
(2.697)
|
3.368
|
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