Reporting unaudited results for 3Q/08, Vitro SAB de CV one of the world's largest producers & distributors of glass products, said 28 Oct that consolidated net sales rose 8.9% while EBITDA increased 11.4%. Despite a 68% increase in natural gas prices, consolidated EBITDA margin increased to 14.5% from 14.1% in the same period 2007. Commenting on the results Enrique Osorio, CFO, said "This was another strong quarter, with the highest EBITDA since 3Q 2006. We see a challenging 2009, but we feel comfortable that we have a strong business with competitive advantages that will play an important role in our performance." Mr. David González, president of Glass Container Business Unit said:"This was again another solid quarter for containers, both in the domestic & export markets, reflecting volume & price increases across the board. Domestic sales rose 25% year-over-year, while export sales increased 8%, including those to the US market. In turn, EBITDA rose 21.6% year-over-year despite higher energy prices. This was driven by strong volumes, a favorable product mix, price increases to cover the inflation of inputs and ongoing cost reduction initiatives and the absence of costs related to the production interruptions in 3Q 2007". "We are taking a conservative approach to planning for next year. We are also developing contingency plans and cost cutting initiatives to be implemented across the board in preparation for what we expect to be a more challenging environment in the year ahead", said Mr. González. Mr. Hugo Lara, president of the Flat Glass business unit, noted, "Despite tough industry conditions in the US and Spanish construction segments and in the North American Automotive business, Flat Glass sales fell only 1.4% this quarter. Sales at Vitro Cristalglass, our Spanish subsidiary, increased 5% which reflects a better price mix from the new value-added production line as well as a strong euro. Auto glass sales to the OEM market fell 5% as a result of weakening demand, but we managed to mitigate some of the negative effects of this downturn and gained market share in the North American market through our increased participation in small car and CUV platforms. Vitro America sales remained flat as we continued to focus on the commercial sector to offset some of the decline experienced in product lines linked to the residential market such as our mirror line. The domestic market for float glass remained strong, however we did see a decline in volume sold to Auto Glass manufacturers."
