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[July 2003]
Interceramic Second Quarter Results
Ceramic tile manufacturer Interceramic (Chihuahua, Mexico) said the second quarter of 2003 - traditionally the slowest quarter of the year for the company - saw sales increase slightly from the same period in 2002, but not up to the company's expectations. With the North American construction industry retaining continuing strength in the face of a global downturn, the markets are extremely competitive with considerable supply of products from producers all over the world for consumers to choose from. The burgeoning supply has made it increasingly tough to differentiate products and grab consumer attention, added the company.
Interceramic's consolidated sales of US$72.2 million for Q2 2003 were 5.49% up on the Q2 2002 sales of US$68.4 million, but lower gross margin for the period resulted in gross income for the quarter virtually identical to the same quarter in 2002. For the first six months of 2003, consolidated sales were pretty much flat, at US$146.3 million against US$145 million in the first semester 2002.
EBITDA dipped to US$8.6 million for Q2 2003 as against US$10 million in Q2 2002. On a six-month basis, operating income of US$11.1 million was 24.78% less than operating income of US$14.8 million in the first semester 2002 and EBITDA of US$18.8 million fell 14.46% behind the US$21.9 million in the first semester last year.
The company said that while it was disappointed by the results for the quarter, its recent investment in customer service improvements such as the Oracle supply chain management system increased levels of inventories and its completely revamped tile selection and packaging system gave Interceramic an opening to exploit against its competitors, even in more distant ones in Europe and South America.
ENDS