EXHIBIT 1
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[DESC LOGO]
DESC ANNOUNCES PRELIMINARY FIGURES ESTIMATED FOR THE
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SECOND QUARTER OF 2000
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Mexico City, July 5, 2000 - DESC, S.A. de C.V. (NYSE: DES; BMV: DESC) announces
preliminary figures estimated for the second quarter ended June 30, 2000, in
keeping with its commitment to provide information to shareholders and
investors.
ESTIMATED RESULTS FOR THE SECOND QUARTER OF 2000
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(In millions of US dollars)
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<CAPTION>
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UNIK GIRSA AGROBIOS DINE CONSOLIDATED
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<S> <C> <C> <C> <C> <C>
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SALES $ 287 $ 206 $ 84 $ 24 $ 601
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OPERATING INCOME 46 17 1 6.5 70.5
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OPERATING MARGIN 16.1% 8.3% 1.3% 27.3% 11.7%
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EBITDA $ 61 $ 24 $ 5 $ 7 $ 96
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Note: Figures US dollars for Sales, Operating Income, Operating Margin and
EBITDA are calculated using monthly figures in current pesos divided by the
average monthly exchange rate.
RESULTS FOR THE SECOND QUARTER OF 1999
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(In millions of US dollars)
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<CAPTION>
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UNIK GIRSA AGROBIOS DINE CONSOLIDATED
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<S> <C> <C> <C> <C> <C>
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SALES $ 252.3 $ 177.9 $ 85.7* $36.9 $ 552.8
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OPERATING INCOME 39.3 27.5 5.5* 14.9 87.2
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OPERATING MARGIN 15.6% 15.5% 6.4%* 40.3% 15.7%
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EBITDA $ 47.8 $ 33.9 $ 5* $ 15.7 $ 104.3
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</TABLE>
Note: Figures US dollars for Sales, Operating Income, Operating Margin and
EBITDA are calculated using monthly figures in current pesos divided by the
average monthly exchange rate.
* To facilitate comparisons, figures do not include results for poultry
business.
GENERAL OVERVIEW
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>> Significant increase in sales principally in the autoparts and chemicals
businesses.
>> The food business continued registering extraordinary charges, which affected
operating income.
>> Figures for the food sector do not include the poultry business, which was
sole in December of 1999.
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<PAGE>
UNIK (AUTOPARTS)
Strong results continue, primarily due to positive trends in the Mexican and
U.S. automotive industry. During the quarter, higher sales volumes in stamping
products, aluminum and steel wheels and cv joints were registered.
GIRSA (CHEMICALS AND DIVERSIFIED PRODUCTS)
After a difficult first quarter, the outlook for this sector has begun to
improve. Recovery is reflected by an increase in sales prices during the month
of April, and a slower increase in the cost of raw materials during the quarter
April-June 2000.
AGROBIOS (FOOD PRODUCTS)
Extraordinary charges in ASF's operations, as well as lower sales volumes for
Corfuerte affected results in this sector.
DINE (REAL ESTATE)
Performance in this sector was supported by improved sales in the Bosques de
Santa Fe project as well as strong results in the Four Seasons Hotel in Punta
Mita. The real estate sector is expected to improve versus the first quarter of
this year.
CONTACTS:
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<S> <C> <C> <C>
Arturo D'Acosta Ruiz Alejandro de la Barreda Alex Cancio, Peter Webpage
Corporate Treasury Director Manager of Investor Relations Firestein www.desc.com.mx
525 261 80 00 ext 2830 525 261 8000 ext 2813 Thomson Financial ---------------
[email protected] Investor Relations
-------------------------- 212-701-1973
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Statements included in this report regarding the Company's business outlook and
anticipated financial and operating results, regarding the Company's growth
potential, constitute forward-looking statements and are based on management
expectations regarding the future of the Company. These expectations are highly
dependent on changes in the market, general economic performance of the home
country, industry and international markets, therefore they are subject to
change.
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