UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of June, 1999
DESC, S.A. DE C.V.
(Translation of registrant's name into English)
PASEO DE LOS TAMARINDOS 400-B, BOSQUES DE LAS LOMAS, 05120 MEXICO, D.F., MEXICO
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F. Form 20-F [X] Form 40-F [ ]
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]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-___________.
#772895 v1
<PAGE>
SIGNATURES
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.
Desc, S.A. de C.V.
(Registrant)
Date: July 8, 1999 By: /s/ Ernesto Vega Velasco
---------------------------------------
(Signature)*
Name: Ernesto Vega Velasco
Title: Chief Financial Officer
- ---------------------
* Print the name and title under the signature of the signing officer.
2
<PAGE>
EXHIBIT INDEX
Sequential
Item Page Number
---- -----------
1. Press release in respect of restatement of Girsa's
results for the four quarters of 1998 and
the first quarter of 1999 to reflect
reclassification of Girsa's reporting segments................. 4
3
desc logo
NEWS RELEASE
FOR FURTHER INFORMATION:
Arturo D'Acosta / Maria Ana Alvarez Amy O'Leary
Citigate Dewe Rogerson
DESC, S.A. de C.V. 212-419-8341
011-525-261-8000 E-Mail: [email protected]
Web Site: www.desc.com.mx
E-Mail: [email protected]
GIRSA, A SUBSIDIARY OF DESC, RESTATES RESULTS FOR THE
FOUR QUARTERS OF 1998 AND THE FIRST OF 1999
USING THE NEW RECLASSIFICATION OF PRODUCTS
Mexico City, June 29, 1999 - DESC S.A. de C.V. (BMV: DESC; NYSE: DES) announces
that Girsa S.A. de C.V. (Girsa), its wholly owned subsidiary in the chemical
sector is responsible for the operation of chemical products and consumer goods.
The company considers that the previous business grouping structure presented in
prior earnings releases does not fairly represent the final market of each
product. Therefore, from this day forward the company will utilize a new
classification, with the intention of better showing the markets to which each
of its products are destined. As such, Girsa will be divided into the
Petrochemical Sector, which includes synthetic rubber products, polystyrene,
phenol, emulsions, and carbon black. The second sector will be Diversified
Products, consists of the business of phosphates, natural pigments, acrylics,
plastic laminates, particle board, water proofing products and adhesives.
This information is provided in order that the analysts may update their models
according to the new reclassification.
Following we present the results from all the quarters in 1998 and the first of
1999 with the new reclassification using the values of each ending quarter.
4
NY2:\772895\01\GKDB01!.DOC\41150.0012
<PAGE>
FIRST QUARTER 1998
GIRSA (PETROCHEMICAL SECTOR)
(figures in millions of constant pesos as of March 31, 1998)
<TABLE>
<CAPTION>
---------------------------------------------- ------------------------ ----------
1ST QUARTER %
------------ -----------
1998 1997 CHANGE
---------------------------------------------- ------------ ----------- ----------
<S> <C> <C> <C>
Sales 713.4 755.9 -5.6%
Exports (US$) 31.5 24.4 29.1%
Operating profit 97.1 132.8 -26.9%
Operating Margin 13.6% 17.6%
EBITDA (1) 131.3 164.2 -20.0%
EBITDA US$ (2) 15.4 17.9 -14.0%
---------------------------------------------- ------------ ----------- ----------
</TABLE>
(1) EBITDA: OPERATING PROFIT + DEPRECIATION AND AMORTIZATION
(2) EBITDA US$: CALCULATED USING THE MONTHLY FIGURES IN CURRENT
PESOS DIVIDED BY THE AVERAGE MONTHLY EXCHANGE RATE.
GIRSA (DIVERSIFIED PRODUCTS)
(figures in millions of constant pesos as of March 31, 1998)
<TABLE>
<CAPTION>
---------------------------------------------- ------------------------ ----------
1ST QUARTER %
------------ -----------
1998 1997 CHANGE
---------------------------------------------- ------------ ----------- ----------
<S> <C> <C> <C>
Sales 735.4 737.7 -0.3%
Exports (US$) 17.9 19.9 -10.1%
Operating profit 100.3 101.1 -0.8%
Operating Margin 13.6% 13.7%
EBITDA (1) 120.0 121.2 -1.0%
EBITDA US$ (2) 14/1 13/2 6.8%
---------------------------------------------- ------------ ----------- ----------
</TABLE>
(1) EBITDA: OPERATING PROFIT + DEPRECIATION AND AMORTIZATION
(2) EBITDA US$: CALCULATED USING THE MONTHLY FIGURES IN CURRENT
PESOS DIVIDED BY THE AVERAGE MONTHLY EXCHANGE RATE.
5
<PAGE>
SECOND QUARTER 1998
GIRSA (PETROCHEMICAL SECTOR)
(figures in millions of constant pesos as of June 30, 1998)
<TABLE>
<CAPTION>
------------------------- ------------ -------------------------- ------------------------ ----------
6 MOS. ENDED JUNE % 2ND QUARTER %
------------- ----------- ------------ -----------
1998 1997 CHANGE 1998 1997 CHANGE
------------------------- ------------ -------------------------- ------------------------ ----------
<S> <C> <C> <C> <C> <C> <C>
1,555.2 1,676.2 -7.2% Sales 820.9 908.7 -9.7%
67.1 38.1 15.5% Exports (US$) 35.7 33.7 5.9%
281.7 317.3 -11.3% Operating profit 181.8 182.1 -0.2%
18.1% 18.9% Operating Margin 22.1% 20.0%
353.9 384.1 -7.9% EBITDA (1) 218.0 215.1 1.3%
40.2 41.3 -2.7% EBITDA US$ (2) 24.8 23.4 5.9%
------------- ----------- ------------ -------------------------- ------------ ----------- ----------
</TABLE>
(1) EBITDA: OPERATING PROFIT + DEPRECIATION AND AMORTIZATION
(2) EBITDA US$: CALCULATED USING THE MONTHLY FIGURES IN CURRENT PESOS
DIVIDED BY THE AVERAGE MONTHLY EXCHANGE RATE.
GIRSA (DIVERSIFIED PRODUCTS)
(figures in millions of constant pesos as of June 30, 1998)
<TABLE>
<CAPTION>
------------------------- ------------ -------------------------- ------------------------ ----------
6 MOS. ACCUMULATED % 2ND QUARTER %
------------- ----------- ------------ -----------
1998 1997 CHANGE 1998 1997 CHANGE
------------------------- ------------ -------------------------- ------------------------ ----------
<S> <C> <C> <C> <C> <C> <C>
1,524.1 1,599.0 -4.7% Sales 767.1 828.9 -7.5%
37.8 42.9 -11.9% Exports (US$) 19.9 19.8 -0.5%
203.5 226.0 -10.0% Operating profit 100.3 120.4 -16.7%
13.1% 14.1% Operating Margin 13.3% 14.5%
244.3 266.0 -8.1% EBITDA (1) 120.9 141.2 -14.4%
27.9 28.6 -2.5% EBITDA US$ (2) 13.8 15.4 -10.4%
------------- ----------- ------------ -------------------------- ------------ ----------- ----------
</TABLE>
(1) EBITDA: OPERATING PROFIT + DEPRECIATION AND AMORTIZATION
(2) EBITDA US$: CALCULATED USING THE MONTHLY FIGURES IN CURRENT PESOS
DIVIDED BY THE AVERAGE MONTHLY EXCHANGE RATE.
6
<PAGE>
THIRD QUARTER 1998
GIRSA (PETROCHEMICAL SECTOR)
(figures in millions of constant pesos as of September 30, 1998)
<TABLE>
<CAPTION>
------------------------- ------------ -------------------------- ------------------------ ----------
ACCUM. TO SEPT. % 3RD QUARTER %
------------- ----------- ------------ -----------
1998 1997 CHANGE 1998 1997 CHANGE
------------------------- ------------ -------------------------- ------------------------ ----------
<S> <C> <C> <C> <C> <C> <C>
2,482.4 2,630.0 -5.6% Sales 871.3 893.7 -2.5%
100.5 91.1 10.3 Exports (US$) 33.1 33.0 0.3%
466.2 509.1 -8.4% Operating profit 174.4 180.5 -3.4%
18.8% 19.4% Operating Margin 20.1% 20.2%
579.9 613.9 -5.5% EBITDA (1) 214.2 216.1 -0.9%
62.4 64.9 -3.8% EBITDA US$ (2) 22.2 23.6 -6.0%
------------- ----------- ------------ -------------------------- ------------ ----------- ----------
</TABLE>
(1) EBITDA: OPERATING PROFIT + DEPRECIATION AND AMORTIZATION
(2) EBITDA US$: CALCULATED USING THE MONTHLY FIGURES IN CURRENT PESOS
DIVIDED BY THE AVERAGE MONTHLY EXCHANGE RATE.
GIRSA (DIVERSIFIED PRODUCTS)
(figures in millions of constant pesos as of September 30, 1998)
<TABLE>
<CAPTION>
--------------------------- ------------ -------------------------- ------------------------ ----------
ACCUM. TO SEPTEMBER % 3RD QUARTER %
--------------- ----------- ------------ -----------
1998 1997 CHANGE 1998 1997 CHANGE
------------------------- ------------ -------------------------- ------------------------ ----------
<S> <C> <C> <C> <C> <C> <C>
2,433.9 2,464.6 -1.2% Sales 855.2 808.2 5.8%
58.0 62.9 -7.8% Exports (US$) 20.4 20.0 2.0%
317.1 339.0 -6.4% Operating profit 106.7 104.9 1.7%
13.0% 13.8% Operating Margin 12/4% 13.0%
381.6 402.1 -5.9% EBITDA (1) 128.6 126.7 1.5%
41.2 42.4 -2.8% EBITDA US$ (2) 13.4 13.8 -2.9%
--------------- ----------- ------------ -------------------------- ------------ ----------- ----------
</TABLE>
(1) EBITDA: OPERATING PROFIT + DEPRECIATION AND AMORTIZATION
(2) EBITDA US$: CALCULATED USING THE MONTHLY FIGURES IN CURRENT PESOS
DIVIDED BY THE AVERAGE MONTHLY EXCHANGE RATE.
7
<PAGE>
FOURTH QUARTER 1998
GIRSA (PETROCHEMICAL SECTOR)
(figures in millions of constant pesos as of December 31, 1998)
<TABLE>
<CAPTION>
--------------------------- ------------ ------------------------- ------------------------ -----------
ACCUM. TO DECEMBER % 4TH QUARTER %
------------- ------------- ------------- ----------
1998* 1997* CHANGE 1998 1997 CHANGE
--------------------------- ------------ ------------------------- ------------------------ -----------
<S> <C> <C> <C> <C> <C> <C>
3,418.1 3,681.2 -6.7% Sales 793.0 900.1 -11.9%
127.3 121.5 3.2% Exports (US$) 27.0 30.4 -11.2%
522.8 705.7 -13.2% Operating profit 114.9 167.4 -31.4%
17.9% 19.2% Operating Margin 14.8% 18.6%
780.1 867.7 -10.9% EBITDA (1) 166.8 218.5 -23.6%
78.8 87.4 -10.8% EBITDA US$ (2) 16.3 22.5 -27.5%
------------- ------------- ------------ ------------------------- ------------- ---------- -----------
</TABLE>
(1) EBITDA: OPERATING PROFIT + DEPRECIATION AND AMORTIZATION
(2) EBITDA US$: CALCULATED USING THE MONTHLY FIGURES IN CURRENT PESOS
DIVIDED BY THE AVERAGE MONTHLY EXCHANGE RATE. THIS CALCULATION IS
APPLICABLE TO ALL DOLLAR DENOMINATED FIGURES IN THIS EARNINGS
RELEASE, WITH THE EXCEPTION OF EXPORTS.
(*) FIGURES FOR 1997 AND 1998 ARE AUDITED
GIRSA (DIVERSIFIED PRODUCTS)
(figures in millions of constant pesos as of December 31, 1998)
<TABLE>
<CAPTION>
--------------------------- ------------ ------------------------- ------------------------ -----------
ACCUM. TO DECEMBER % 4TH QUARTER %
------------- ------------- ------------- ----------
1998* 1997* CHANGE 1998 1997 CHANGE
--------------------------- ------------ ------------------------- ------------------------ -----------
<S> <C> <C> <C> <C> <C> <C>
3,491.6 3,400.0 2.7% Sales 917.7 833.8 10.1%
77.8 81.5 -4.5% Exports (US$) 18.9 18.6 1.6%
455.7 443.3 2.8% Operating profit 120.3 84.9 39.6%
13.0% 12.9% Operating Margin 13.0% 10.2%
548.8 532.1 2.7% EBITDA (1) 145.2 106.8 35.9%
55.5 53.4 3.9% EBITDA US$ (2) 14.2 11.0 29.0%
------------- ------------- ------------ ------------------------- ------------- ---------- -----------
</TABLE>
(1) EBITDA: OPERATING PROFIT + DEPRECIATION AND AMORTIZATION
(2) EBITDA US$: CALCULATED USING THE MONTHLY FIGURES IN CURRENT PESOS
DIVIDED BY THE AVERAGE MONTHLY EXCHANGE RATE. THIS CALCULATION IS
APPLICABLE TO ALL DOLLAR DENOMINATED FIGURES IN THIS EARNINGS
RELEASE, WITH THE EXCEPTION OF EXPORTS.
(*) FIGURES FOR 1997 ARE AUDITED
8
<PAGE>
FIRST QUARTER 1999
GIRSA (PETROCHEMICAL SECTOR)
(figures in millions of constant pesos as of March 31, 1999)
<TABLE>
<CAPTION>
---------------------------------------------- ------------------------ ----------
1ST QUARTER %
------------ -----------
1999 1998 CHANGE
---------------------------------------------- ------------ ----------- ----------
<S> <C> <C> <C>
Sales 726.4 843.6 -13.9%
Exports (US$) 27.9 31.5 -11.4%
Operating profit 85.1 114.8 -25.9%
Operating Margin 11.7% 13.6%
EBITDA (1) 127.9 155.3 -17.6%
EBITDA US$ (2) 12.8 15.4 -16.9%
---------------------------------------------- ------------ ----------- ----------
</TABLE>
(1) EBITDA: OPERATING PROFIT + DEPRECIATION AND AMORTIZATION
(2) EBITDA US$: CALCULATED USING THE MONTHLY FIGURES IN CURRENT
PESOS DIVIDED BY THE AVERAGE MONTHLY EXCHANGE RATE. THIS
CALCULATION IS APPLICABLE TO ALL DOLLAR DENOMINATED FIGURES
IN THIS EARNINGS RELEASE, WITH THE EXCEPTION OF EXPORTS.
GIRSA (DIVERSIFIED PRODUCTS)
(figures in millions of constant pesos as of March 31, 1999)
<TABLE>
<CAPTION>
---------------------------------------------- ------------------------ ----------
1ST QUARTER %
------------ -----------
1999 1998 CHANGE
---------------------------------------------- ------------ ----------- ----------
<S> <C> <C> <C>
Sales 849.0 869.6 -2.4%
Exports (US$) 19.2 17.9 7.3%
Operating profit 113.8 118.6 -4.1%
Operating Margin 13.4% 13.6%
EBITDA (1) 138.2 141.9 -2.6%
EBITDA US$ (2) 13.8 14.1 -2.1%
---------------------------------------------- ------------ ----------- ----------
</TABLE>
(1) EBITDA: OPERATING PROFIT + DEPRECIATION AND AMORTIZATION
(2) EBITDA US$: CALCULATED USING THE MONTHLY FIGURES IN CURRENT
PESOS DIVIDED BY THE AVERAGE MONTHLY EXCHANGE RATE. THIS
CALCULATION IS APPLICABLE TO ALL DOLLAR DENOMINATED FIGURES
IN THIS EARNINGS RELEASE, WITH THE EXCEPTION OF EXPORTS.
9
