6-K Audit 4th Quarter

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6 - K

 

 

Report of Foreign Private Issuer Pursuant to

Rule 13a - 16 or 15d United Securities Exchange Act of 1934

 

For the Month of April 2004

 

CERAMIC INTERNATIONAL, INC.

( Translation of Registrant's Name Into English )

 

 

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

(Exact Name of the registrant as specified in its charter)

 

 

Calle 41 ( Avenida Carlos Pacheco ) No. 7200, del Sector 26, C.P. 31060, Chihuahua, Chihuahua, Mexico

Telephone: 011 52 29 11 11

(Address of Principal Executives Offices)

 

 

(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: )

 


 

ITEMS INCLUDED

 

On April 26, 2004 Internacional de Ceramica, S.A. de C.V. ("The Company") is sending copy of the Audited Fourth Quarter 2003 Financial information. This information was sent to the Bolsa Mexicana de Valores on April 20th, 2004. A copy of this information is attached to this report as Exhibit A.

 


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.

                                                                                                                                INTERNACIONAL DE CERAMICA, S.A. DE C.V.

 

                                                                                                                                 Jesus A. Olivas                                                

                                                                                                                                 Jesus A. Olivas

                                                                                                                                 Chief Financial Officer

 

Date: April 26th, 2004.

 


 

EXHIBIT A

AUDITED Fourth Quarter 2003 Financial information


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

QUARTER: 4  2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

CONSOLIDATED FINANCIAL STATEMENTS

AT DECEMBER 31 2003 AND 2002

(Thousands of Pesos)

AUDITED CONSOLIDATED

REF  S

CONCEPTS

QUARTER OF PRESENT YEAR

QUARTER OF LAST YEAR

Amount

%

Amount

%

1

TOTAL ASSETS

3,448,668

100

3,271,443

100

2

CURRENT ASSETS

1,385,920

40

1,349,488

41

3

Cash and Short-Term Investments

51,049

1

93,435

3

4

Accounts and Documents Receivable (Net)

336,742

10

355,889

11

5

Other Accounts and Documentss Receivable

33,462

1

47,542

1

6

Inventories

941,988

27

827,885

25

7

Other current assets

22,679

1

24,737

1

8

LONG-TERM

7,694

0

7,852

0

9

Accounts and Documents Receivable (Net)

0

0

0

0

10

Investments in shares of subsidiaries and non Consolidated

7,694

0

7,852

0

11

Other Investments

0

0

0

0

12

PROPERTY, PLANT AND EQUIPMENT

1,966,173

57

1,847,975

56

13

Property

924,236

27

919,691

28

14

Machinery and Industrial

2,256,079

65

1,989,150

61

15

Other equipment

311,575

9

276,314

8

16

Accumulated depreciation

1,595,181

46

1,438,279

44

17

Construction in progress

69,464

2

101,099

3

18

DEFERRED ASSETS (NET)

0

0

0

0

19

OTHER ASSETS

88,881

3

66,128

2

20

TOTAL LIABILITIES

2,207,270

100

2,108,175

96

21

CURRENT LIABILITIES

786,601

36

744,636

34

22

Suppliers

264,955

12

322,488

15

23

Bank loans

385,969

17

278,936

13

24

Stock market loans

0

0

0

0

25

Taxes to be paid

4,706

0

7,260

0

26

Other current liabilities

130,971

6

135,952

6

27

LONG.TERM LIABILITIES

972,419

44

1,012,667

46

28

Bank loans

972,419

44

1,012,667

46

29

Stock market loans

0

0

0

0

30

Other loans

0

0

0

0

31

Deferred loans

442,623

20

346,174

16

32

Other liabilities

5,627

0

4,698

0

33

CONSOLIDATED SOTCK HOLDERS EQUITY

1,241,398

100

1,163,268

100

34

MINORITY INTEREST

243,638

20

214,408

18

35

MAJORITY INTEREST

997,760

80

948,860

82

36

Contributed

1,980,073

160

1,984,693

171

37

Paid in Capital Stock (Nominal)

48,600

4

53,021

5

38

Restatement of paid in capital stock

671,590

54

671,789

58

39

Premium on sales of shares

1,259,883

101

1,259,883

108

40

Contributions for future capital increases

0

0

0

0

41

Capital increase (decrease)

-982,313

-79

-1,035,833

-89

42

Retained Earnings and capital reserve

293,229

24

200,222

17

43

Repurchase fund of shares

133,753

11

182,426

16

44

Excess (shortfall) in restatement of holders equity

-1,441,512

-116

-1,511,488

-130

45

Net income for the year

32,217

3

93,007

8

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

CONSOLIDATED FINANCIAL STATEMENTS

BREAKDOWN OF MAIN CONCEPTS

(Thousands of Pesos)

AUDITED CONSOLIDATED

REF

S

CONCEPTS

QUARTER OF PRESENT YEAR

QUARTER OF LAST YEAR

Amount

%

Amount

%

3

CASH AND SHORT TERM INVESTMENTS

51,049

100

93,435

100

46

Cash

-

0

-

0

47

Short term investments

51,049

100

93,435

100

18

DEFERRED ASSETS (NET)

-

0

-

0

48

Amortiz3d r redeemed expenses

-

0

-

0

49

Goodwill

-

0

-

0

50

deferred taxes

-

0

-

0

51

others

-

0

-

0

21

CURRENT LIABILITIES

786,601

100

744,636

100

52

Foreign currency liabilities

547,531

70

448,705

60

53

Mexican pesos liabilities

239,070

30

295,931

40

24

STOCK MARKETS LOANS

-

0

-

0

54

Comercial paper

-

0

-

0

55

Current maturities of medium term

-

0

-

0

56

Current maturities of bonds

-

0

-

0

26

OTHER CURRENT LIABILITIES

130,971

100

135,952

100

57

Other current liabilities with cost

-

0

-

0

58

Other current liabilities without cost

130,971

100

135,952

100

27

LONG TERM LIABILITIES

972,419

100

1,012,667

100

59

Foreing currency liabilities

972,419

100

1,012,667

100

60

Mexican pesos liabilities

-

0

-

0

29

STOCK MARKET LOANS

-

0

-

0

61

Bonds

-

0

-

0

62

Medium term notes

-

0

-

0

30

OTHER LOANS

-

0

-

0

63

Other loans with cost

-

0

-

0

64

Other loans without cost

-

0

-

0

31

DEFERRED LOANS

442,623

100

346,174

100

65

Negative goodwill

-

0

-

0

66

Deferred taxes

442,623

100

346,174

100

67

Other

-

0

-

0

32

OTHER LIABILITIES

5,627

0

4,698

0

68

Reserves

-

0

-

0

69

Other liabilities

5,627

0

4,698

0

44

EXCESS (SHORTFALL) IN RESTATEMENT OF STOCK HOLDERS EQUITY

(1,441,512)

100

(1,511,488)

100

70

Accumulated income due to monetary position

-

0

-

0

71

Income from non monetary position

(1,443,032)

100

(1,511,489)

100

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

CONSOLIDATED FINANCIAL STATEMENTS

OTHER CONCEPTS

(Thousands of Pesos)

 

AUDITED CONSOLIDATED

REF

S

CONCEPTS

QUARTER OF PRESENT YEAR

QUARTER OF LAST YEAR

Amount

Amount

72

WORKING CAPITAL

599,319

604,852

73

PENSIONS FUND AND SENIORITY

0

0

74

EXECUTIVES (*)

11

11

75

EMPLOYERS (*)

1,256

1,213

76

WORKERS (*)

1,778

1,865

77

CIRCULATION SHARES (*)

97,200,072

106,042,750

78

RESPURCHASED SHARES (*)

0

0

       

(*) THIS CONCEPTS SHOULD BE EXPRESED IN UNITS

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

CONSOLIDATED EARNINGS STATEMENT

FROM JANUARY THE 1ST TO DECEMBER 31st OF 2003 AND 2002

(Thousands of Pesos)

AUDITED

REF

R

CONCEPTS

QUARTER OF PRESENT YEAR

QUARTER OF LAST YEAR

Amount

%

Amount

%

1

NET SALES

3,424,926

100

3,267,385

100

2

COST OF SALES

2,236,376

65

2,058,976

63

3

GROSS INCOME

1,188,550

35

1,208,409

37

4

OPERATING EXPENSES

959,388

28

898,570

28

5

OPERATING INCOME

229,162

7

309,839

9

6

TOTAL FINANCING COST

111,923

3

168,266

5

7

INCOME AFTER FINANCING COST

117,239

3

141,573

4

8

OTHER FINANCIAL OPERATIONS

8,690

0

12,831

0

9

INCOME BEFORE TAXES AND WORKERS PROFIT SHARING

108,549

3

128,742

4

10

RESERVE FOR TAXES AND WORKERS PROFIT SHARING

46,831

1

15,626

0

11

NET INCOME AFTER TAXES AND WORKERS SHARING

61,718

2

113,116

3

12

SHARE IN NET INCOME OF SUBSIDIARIES AND NON COSOLIDATED ASSOCIATES

488

0

-449

0

13

CONSOLIDATES NET INCOME

62,206

2

112,667

3

14

INCOME OF DISCONTINUOUS OPERATIONS

0

0

0

0

15

CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS

62,206

2

112,667

3

16

EXTRAORDINATY ITEMS NET EXPENSES

0

0

0

0

17

NET EFFECT AT THE BEGINNING OF THE YEAR BY CHANGES IN ACCOUNTING PRINCIPLES

0

0

0

0

18

NET CONSOLIDATES INCOME

62,206

2

112,667

3

19

NET INCOME OF MINORITY INTEREST

29,989

1

19,660

1

20

NET INCOME OF MAJORITY INTEREST

32,217

1

93,007

3

 

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

CONSOLIDATED EARNINGS STATEMENT

BREAKDOWN OF MAIN CONCEPTS

(Thousands of Pesos)

AUDITED CONSOLIDATED

REF

R

CONCEPTS

QUARTER OF PRESENT YEAR

QUARTER OF LAST YEAR

Amount

%

Amount

%

1

NET SALES

3,424,926

100

3,267,385

100

21

DOMESTIC

1,920,526

56

1,841,960

56

22

FOREIGN

1,504,400

4

1,425,425

4

23

TRANSLATED INTO DOLLARS (***)

134,647

 

130,871

 
           

6

TOTAL FINANCING COST

111,923

100

168,266

100

24

INTEREST PAID

79,854

71

114,802

68

25

EXCHANGE LOSSES

242,008

216

231,010

137

26

INTEREST EARNED

8,286

7

7,986

5

27

EXCHANGE PROFITS

150,481

134

115,240

68

28

GAIN DUE TO MONETARY POSITION

-51,172

-46

-54,320

-32

           

8

OTHER FINANCIAL OPERATIONS

8,690

100

12,831

100

29

OTHER NET EXPENSES (INCOME) NET

8,690

100

12,831

100

30

(PROFIT) LOSS ON SALE OF OWN SHARES

0

0

0

0

31

(PROFIT) LOSS ON SALE OF SHORT TERM

0

0

0

0

           

10

RESERVE FOR TAXES AND WORKERS PROFIT SHARING

46,831

100

15,626

100

32

INCOME TAX

21,105

45

20,852

133

33

DEFERED INCOME TAX

25,726

55

-9,024

-58

34

WORKERS PROFIT SHARING

0

0

3,798

24

35

DEFERED WORKERS PROFIT SHARING

0

0

0

0

           

(***) THOUNSANDS OF DOLLARS

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

CONSOLIDATED EARNINGS STATEMENT

OTHER CONCEPTS

(Thousands of Pesos)

AUDITED CONSOLIDATED

REF

R

CONCEPTS

QUARTER OF PRESENT YEAR

QUARTER OF LAST YEAR

Amount

%

Amount

%

36

TOTAL SALES

3,639,680

100

3,464,991

100

37

NET INCOME OF THE YEAR

0

0

0

0

38

NET SALES (**)

3,424,926

9

3,267,385

 

39

OPERATING INCOME (**)

229,162

 

309,839

 

40

NET INCOME OF MAYORITY I NTEREST (**)

32,217

 

93,007

 

41

NET CONSOLIDATED INCOME (**)

62,206

100

112,667

 
           

(**) THE RESTATED INFORMATION ON THE LAST TWELVE MONTHS SHOULD BE USED

 

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

QUARTERLY CONSOLIDATED EARNINGS STATEMENT

(Thousands of Pesos)

AUDITED

REF

R

CONCEPTS

QUARTER OF PRESENT YEAR

QUARTER OF LAST YEAR

Amount

%

Amount

%

1

NET SALES

862,753

100

843,630

100

2

COST OF SALES

577,315

67

546,312

65

3

GROSS INCOME

285,438

33

297,318

35

4

OPERATING EXPENSES

251,074

29

231,192

27

5

OPERATING INCOME

34,364

4

66,126

8

6

TOTAL FINANCING COST

22,262

3

21,331

3

7

INCOME AFTER FINANCING COST

12,102

1

44,795

5

8

OTHER FINANCIAL OPERATIONS

-965

0

2,408

0

9

INCOME BEFORE TAXES AND WORKERS PROFIT SHARING

13,067

2

42,387

5

10

RESERVE FOR TAXES AND WORKERS PROFIT SHARING

-40,839

-5

-56,468

-7

11

NET INCOME AFTER TAXES AND WORKERS SHARING

53,906

6

98,855

12

12

SHARE IN NET INCOME OF SUBSIDIARIES AND NON COSOLIDATED ASSOCIATES

488

0

-971

0

13

CONSOLIDATES NET INCOME

54,394

6

97,884

12

14

INCOME OF DISCONTINUOUS OPERATIONS

0

0

0

0

15

CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS

54,394

6

97,884

12

16

EXTRAORDINATY ITEMS NET EXPENSES

0

0

0

0

17

NET EFFECT AT THE BEGINNING OF THE YEAR BY CHANGES IN ACCOUNTING PRINCIPLES

0

0

0

0

18

NET CONSOLIDATES INCOME

54,394

6

97,884

12

19

NET INCOME OF MINORITY INTEREST

6,529

1

7,798

1

20

NET INCOME OF MAJORITY INTEREST

47,865

6

90,086

11

 

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

QUARTERLY CONSOLIDATED EARNINGS STATEMENT

BREAKDOWN OF MAIN CONCEPTS

(Thousands of Pesos)

AUDITED CONSOLIDATED

REF

R

CONCEPTS

QUARTER OF PRESENT YEAR

QUARTER OF LAST YEAR

Amount

%

Amount

%

1

NET SALES

862,753

100

843,630

100

21

DOMESTIC

491,729

57

496,759

59

22

FOREIGN

371,024

4

346,871

4

23

TRANSLATED INTO DOLLARS (***)

32,966

 

31,449

 
           

6

TOTAL FINANCING COST

22,262

100

21,331

100

24

INTEREST PAID

20,430

92

23,890

112

25

EXCHANGE LOSSES

44,475

200

35,778

168

26

INTEREST EARNED

2,236

10

2,905

14

27

EXCHANGE PROFITS

20,759

93

18,334

86

28

GAIN DUE TO MONETARY POSITION

-19,648

-88

-17,098

-80

           

8

OTHER FINANCIAL OPERATIONS

-965

100

2,408

100

29

OTHER NET EXPENSES (INCOME) NET

-965

100

2,408

100

30

(PROFIT) LOSS ON SALE OF OWN SHARES

0

0

0

0

31

(PROFIT) LOSS ON SALE OF SHORT TERM

0

0

0

0

           

10

RESERVE FOR TAXES AND WORKERS PROFIT SHARING

-40,839

100

-56,468

100

32

INCOME TAX

-17,532

43

-6,591

12

33

DEFERED INCOME TAX

-15,762

39

-49,181

87

34

WORKERS PROFIT SHARING

-7,545

18

-696

1

35

DEFERED WORKERS PROFIT SHARING

0

0

0

0

(***) THOUNSANDS OF DOLLARS

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

CONSOLIDATED FINANCIAL STATEMENT OF CHANGES

(Thousands of Pesos)

AUDITED CONSOLIDATED

REF

C

CONCEPTS

QUARTER OF PRESENT YEAR

QUARTER OF LAST YEAR

Amount

Amount

1

Consolidated net

62,206

112,667

2

+ (-) items added to income which do not require using cash

201,371

151,030

3

Cash flow from net income of the year

263,577

263,697

4

Cash flow from change in working capital

-159,758

-94,406

5

Cash generated (used) in operating activities

103,819

169,291

6

Cash flow from external financing

66,785

-62,371

7

Cash flow from internal financing

-79,054

-69,148

8

Cash flow generated (used) by financing

-12,269

-131,519

9

Cash flow generated (used) by investment activities

-133,936

-181,793

10

Net increase (decrease) in cash and investments

-42,386

-144,021

11

Cash and short term investments at the beginning of the period

93,435

237,456

12

Cash and short term investments at the end of the period

51,049

93,435

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

CONSOLIDATED FINANCIAL STATEMENT OF CHANGES

BREAKDOWN OF MAIN CONCEPTS

(Thousands of Pesos)

AUDITED CONSOLIDATED

REF

C

CONCEPTS

QUARTER OF PRESENT YEAR

QUARTER OF LAST YEAR

Amount

Amount

2

+ (-) items added to income which do not require using cash

201,371

151,030

13

Depreciation and amortization the period

175,645

160,054

14

+ (-) net increase (decrease) in pensions fund and seniority premiums

0

0

15

+ (-) net loss (profit) in money

0

0

16

+ (-) net loss (profit) in assets and liabilities actualization

0

0

17

+ (-) other items

25,726

-9,024

       

4

Cash flow from change in working capital

-159,758

-94,406

18

+ (-) decrease (increase) in account receivables

19,147

-17,997

19

+ (-) decrease (increase) in inventories

-114,103

-135,158

20

+ (-) decrease (increase) in other account receivables

-6,457

-16,592

21

+ (-) decrease (increase) in suppliers

-59,533

149,170

22

+ (-) decrease (increase) in other liabilities

1,188

-73,829

       

6

Cash flow from external financing

66,785

-62,371

23

+ short term bank and stock market

107,033

-811,681

24

+ long term bank and stock market

-40,248

749,310

25

+ dividend received

0

0

26

+ Other financing

0

0

27

-Bank financing amortization

0

0

28

-Stock market amortization

0

0

29

- Other financing amortization

0

0

       

7

Cash flow from internal fianacing

-79,054

-69,148

30

+ (-) increase (decrease) in capital

-53,293

-62,737

31

- Dividends paid

-25,761

-6,411

32

+ Premium on sale of shares

0

0

33

+ Contribution for future capital

0

0

       

9

Cash flow generated (Utilized) in inestment activities

-133,936

-181,793

34

+ (-) decrease (increase) in stock investments of a permanent nature

0

0

35

- Acquisitions of property, pland and equipments

-133,936

-191,793

36

- Increase in constructions in process

0

0

37

+ Sale of other permanent

0

0

38

+ Sale of tangible fixed assets

0

0

39

+ (-) Other items

0

0

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

RATIOS

CONSOLIDATED

AUDITED CONSOLIDATED

REF

P

CONCEPTS

QUARTER OF PRESENT YEAR

QUARTER OF LAST YEAR

Amount

Amount

 

YIELD

   

1

Net income to net sles

1.82%

3.45%

2

Net income to stock holders equity (**)

3.23%

9.80%

3

Net income to total assets (**)

1.80%

3.44%

4

Cash dividnes to previous year net income

0.00%

0.00%

5

Income due to monetary position to net income

82.26%

48.21%

 

ACTIVITY

   

6

Net sales to net assets (**)

0.99 times

1.00 times

7

Net sales to fixed assets (**)

1.74 times

1.77 times

8

Inventories rotation (**)

2.37 times

2.49 times

9

Accounts receivable in days of sales

31 days

34 days

10

Paid interest to talt libilities with cost (**)

5.88%

8.89%

 

LEVERAGE

   

11

Total liabilities to total assets

64.00%

64.44%

12

Total liabilities to stock holders equity

1.78 times

1.81 times

13

Foreign currency liabilities to total liabilities

68.86%

69.32%

14

long term liabilities to fixed assets

49.46%

54.80%

15

Opertaing income to interest paid

2.87 times

2.70 times

16

Net sales to total liabilities (**)

1.55 times

1.55 times

 

LIQUIDITY

   

17

Current assets to current liabilities

1.76 times

1.81 times

18

Current assets less invetory to current liabilities

0.56 times

0.70 times

19

Current assets to total liabilities

0.63 times

0.64 times

20

available assets to curent liabilities

6.49%

12.55%

 

CASH FLOW

   

21

Cash flow from net income to net sales

7.70%

8.07%

22

Cash flow from changes in working capital to net sales

-4.66%

-2.89%

23

Cash generated (used) in operating to interest paid

1.30 times

1.47 times

24

External financing to cash generated (used) in financing

-544.34%

47.42%

25

Internal financing to cash generated in financing

644.34%

52.58%

26

To cash generated (used) in investment activities

100.00%

100.00%

(**) IN THESE RATIOS FOR THE DATA TAKE INTO CONSIDERATION THE LAST TWELVE MONTHS

 


MEXICAN STOCK EXCHANGE

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC QUARTER: 4 YEAR 2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

NOTES TO FINANCIAL STATEMENTS (1)

CONSOLIDATED

Final Printing

 

S23: IN THIS ACCOUNT OF THE ACTUAL YEAR ARE INCLUDED THE CURRENT LIABILITIES WITH COST OF THE COMPANY, EVEN WHEN THESE ARE NOT BANK LOANS.


MEXICAN STOCK EXCHANGE

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC QUARTER: 4 YEAR 2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

DIRECTOR REPORT (1)

CONSOLIDATED

ANNEX 1; Final Printing

Interceramic Posts 2003 Year End Results

Interceramic's consolidated sales for 2003 were US $306.4 million, up 2.14 percent from sales of US $300.0 million in 2002-a new record high for the company but certainly below our expectations for the year. The growth in sales was largely offset by increases in certain components of the cost of goods sold, as well as by lower price levels mainly the result of the growth of imported product in our mix of sales. Accordingly our gross margin for 2003 of 34.70 percent was 2.30 points lower than gross margin of 37.00 percent in 2002. There are several reasons why our costs were higher than expected this year. Primary among them was the continuing slide of the Peso, which devalued another eight percent against the Dollar over the course of 2003 on top of the almost 13 percent reduction in 2002. We pay for many of our raw materials in Dollars and our cost of natural gas-a significant factor in our cost of production-both in our Mexican facilities and in the Garland, Texas plant, is denominated in Dollars. Also, the tile that we imported during the year from Europe and South America to round out our product selection as well as to free up production capacity at our own plants for higher margin products, is all sold to us in Dollars. The decrease in the value of the Peso made all of these components more expensive for us during the year.

Although we have little control over the value of the Peso, we can take steps to lower the cost of production in more meaningful ways. During 2003, we put into production a new, state of the art kiln in one of our Chihuahua, Mexico plants, and another new kiln is set to come on line during the first quarter of the year. We also implemented a fully automated tile selection process in our plants-the critical stage where tile is packaged and categorized into first class, second class or scrap-not only reducing labour cost but improving the accuracy of the process. Additional improvements included major changes to the glazing process. All of these improvements and modifications are designed to help us produce higher quality, more innovative products at lower cost.

Sales in Mexico grew by 1.56 percent over sales in 2002, hitting US $171.8 million. Measured in constant Pesos, however, a perhaps more meaningful yardstick for revenues entirely in Mexico, sales were Ps 1,920.5 million an increase of 4.27 percent over sales in 2002. Another plus was the growth in unit sales of 17.54 percent more square meters of product in 2003 than we sold in 2002, indicating greater market penetration in a Mexican ceramic tile market that only increased in consumption by about four percent in the aggregate over the course of the year. In the International markets, primarily the United States, sales grew to US $134.6 million in 2003 from US $130.9 million in 2002, a 2.88 percent increase. At the same time, volume of product sold decreased by 7.70 percent, sending a mixed message of decreased market penetration yet better overall prices.

As was the case during 2002, costs attributed to improving our sales infrastructure and an extremely competitive world market led to decline in operating income. At US $20.5 million, operating income in 2003 was 28.08 percent lower than operating income of US $28.5 million in 2002. Lower operating income suppressed our earnings before interest, taxes, depreciation and amortization ("EBITDA"), which at US $36.2 million for the year represented a 16.14 percent drop over EBITDA of US $43.2 million in 2002. On the other hand lower interest rates have improved our debt service coverage ratio, which at the end of the last quarter of 2003 stood at 5.7 times compared to 4.4 times at the end of last year.

On the sales side we undertook some significant steps in both Mexico and the United States during 2003 in order to improve our distribution and deepen our market penetration in 2004.

In the United States, we broadened our image in our company-owned distribution network by changing the name from "Ceramic Tile International" to "Interceramic Tile and Stone Gallery," not only incorporating our brand-name but also better describing the scope and quality of products we offer. We also made the decision to move to new, custom designed facilities in three of our existing markets including Houston, Texas and Albuquerque, New Mexico which, although costing some disruption and added expense in the short-term, should significantly improve our presence in those markets and boost our ability to provide excellent service to our customers. At the end of 2003, we had 19 company-owned stores in the United States that provided sales growth during 2003 of about nine percent over last year. We look to continue developing this captive distribution further in coming periods, particularly in the sprawling southern California market. On the independent wholesale side in the United States market, we suffered a decline in revenues in 2003 that negatively impacted our operating profits. We have since put in place strategies which we believe will solve most of our wholesale problems in 2004 and help to recover growth in this area.

In Mexico we continued to refine our nationwide network of exclusive franchise stores, focusing on improvements in customer service, marketing of innovative new products and embellishment of the distinctive Interceramic image in the markets. A cornerstone of our efforts is the creation of new, cutting edge products that can compete in quality and design with the best in the world. In 2003 we introduced more than 40 new product lines -compared to an average of ten annually in prior years-most of which were made available in Mexico and in the United States. As is the case in the United States, in the right markets our company-owned stores provide us with appreciably higher margins, and company franchise stores in Mexico grew sales markedly, selling 20.89 percent more product than during 2002. At the end of 2003 we reached an agreement with an affiliate to purchase our franchise distributors in key Mexican markets including Monterrey and the State of Chihuahua, and we expect these acquisitions (which should be completed in the first quarter of 2004) to be a big benefit to us in coming periods.

In 2004 Interceramic celebrates its 25th Anniversary and we are determined to make the year the best in our history. If 2003 was marked by slow economic growth and intense competition due to overcapacity and diminished demand in Europe, a much improved global economy and tougher conditions for European imports in the United States and Mexico due to the strong Euro are expected by us at Interceramic to set the pace for 2004. With the many improvements we have made to our production processes, operational infrastructure, new products, sales and customer service, there are no obstacles to Interceramic capitalizing on the opportunities 2004 presents.

Oscar E. Almeida

Chairman of the Board

 

Victor D. Almeida

Chief Executive Officer

This document contains forward-looking statements within the meaning of the United States Securities Exchange Act of 1934 which reflect the Company's views about future events and financial performance. Actual events and results could differ materially from those stated herein and, accordingly, undue reliance should not be placed upon them. The forward-looking statements speak only of their dates and the Company undertakes no obligation to update or revise any of them.

DISCUSSION ON OTHER ACCOUNTS

1.- Comprehensive Financing Cost.- Comprehensive Financing Cost for the year 2003 was a loss of $111.9 millions compared to a loss of $168.3 millions registered during 2002. This decreased loss was mainly due to lower interest expenses which at $79.9 millions represents a 30.44 percent decrease over the $114.8 million in 2002. Other factor was the decrease in the foreign exchange loss which at $91.5 million in 2003, represents a 20.94 percent over the $115.8 million in 2002. this lower foreign exchange loss was due to a lower depreciation of the Peso against the Dollar in 2003 than in 2002.

2.- Other Income or Expenses.- Other income or expenses is an account composed by non continuous ordinary transactions, such as, write down of assets, obsolete inventories, waste of raw materials, etc.

Other expenses during 2003 were of $8.7 millions, amount significantly lower than the expense of $12.8 millions registered during 2002.

3.- Minority Net Income.- This account in the Financial Statements relates to the interest of Dal-Tile Inc in "Recubrimientos Interceramic, S.A. de C.V." and Custom's Inc. interest in "Adhesivos y Boquillas, S. de R.L. de C.V.". Minority net income posted in 2003 was $ 30.0 million, compared to $ 19.7 million in 2002, representing an increase of 52.54 percent.

4.- Majority Net Income.- This account in the Financial Statements consists of consolidated net income, less the portion attributable to Dal-Tile's Inc. ownership interest in Recubrimientos Interceramic, S.A. de C.V. and that of Custom's Inc. in "Adhesivos y Boquillas, S. de R.L. de C.V.".

Majority net income for the year decreased significantly to an income of $ 32.2 million in 2003 from a majority net income of $ 93.0 million in 2002.

LIQUIDITY AND CAPITAL RESOURCES

1).- DEBT.- At the end of the year the Company's net debt was of US $116.4 millions, composed mainly by a Syndicated Loan obtained in 2002 for an amount of US $100.0 millions. At the date the Company has not failed to make any payment of any of the different loans obtained from different banks (see Annex 5). At the date of the report the Company is in compliance with all of its credit agreements.

Over the course of the third quarter, Interceramic determined that the Company was not in compliance with a financial ratio contained in a covenant in the Credit Agreement applicable to our US $100.0 million syndicated loan facility. With uncertainty over how quickly and to what extent our operating income will improve in the short term, we held discussions with our lenders ending with the agreement to amend the Credit Agreement establishing more flexible terms, being at the date of this report in compliance with all covenants of such Agreement.

2).- LIQUIDITY.- The main source of fund for the Company is basically the obtained from the sales of the products that manufacture and in a leaser extent that commercializes. For the full year of 2003, of the total sales of the Company, 56.07 percent were denominated in Mexican Pesos, while the remaining 43.93 percent were denominated in US Dollars.

EVOLUTION OF MAIN CONCEPTS IN THE LAST YEARS.

2001

2002

2003

Net Sales

288.0

300.0

306.4

Cost of Sales

-180.9

-189.0

-200.1

Gross profit

107.2

111.0

106.3

Gross margin

37.2%

37.0%

34.7%

Operating Expenses

-74.3

-82.5

-85.8

Operating Income

32.9

28.5

20.5

Operating margin

11.4%

9.5%

6.7%

EBITDA

46.7

43.2

36.2

EBITDA margin

16.2%

14.4%

11.8%

Volume variation *

8.5%

1.0%

7.2%

* Variation respecting the same period of the previous year..

 


 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC QUARTER: 4 YEAR 2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

FINANCIAL STATEMENTS NOTES (1)

CONSOLIDATED

ANNEX 2; Final Printing

 

Pursuant to Bulletin B-15 financial statements previously reported have been restated to take into account a common actualization factor determined by weighting the Company's respective sales in Pesos and Dollars, each as effected by inflation and devaluation in the applicable currencies. This factor for the 12 month period from January '03 to December '03 was 6.82% compared to the inflation for the same period of 3.98%.

ACCOUNTING POLICIES AND STANDARDS

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in Mexico ("Mexican GAAP").

I. Recognition of the effects of inflation.- The Company recognizes the effects of inflation on financial information as required by Mexican Accounting Principles Bulletin B-10, "Accounting Recognition of the Effects of Inflation on Financial Information".

Certain concepts and procedures required by the application of Bulletin B-10 are explained below:

The Company follows the specific-cost method to restate its inventories.

Imported machinery was restated based on the rate of inflation in the country of origin and the prevailing exchange rate at the balance sheet date. Machinery and equipment of domestic origin was restated based on the Mexican National Consumer Price Index ("NCPI").

Capital stock, paid in capital, stock repurchase reserve, retained earnings, cumulative effect of deferred taxes, effect of translation of foreign subsidiaries, and net income were restated by using a common restatement factor, which was determined based on the weighted average net sales in each currency.

The gain or loss on net monetary position represents the effects of inflation, as measured by the NCPI, on the Company's monetary assets and liabilities. During inflationary periods, losses are incurred by holding monetary assets, whereas gains are realized by holding monetary liabilities. The net monetary effect is included in the consolidated statements of income as part of the "comprehensive financing cost."

The deficit from restatement of stockholders' equity consists principally of the initial cumulative monetary position result and the cumulative deficit from holding non-monetary assets. The (loss) gain from holding non-monetary assets represents the amount by which the (decrease) increase in the specific value of assets was (lower) higher than the rate of inflation.

II. Cash equivalents.- Cash equivalents are shown at cost plus accrued interest through the balance sheet date. The stated value approximates fair value.

All highly liquid investments with a maturity of three months or less at the time of purchase are considered cash equivalents and are carried at cost which approximates their fair market value.

III. Inventories and Cost of Sales.- Inventories are recorded initially at acquisition or production cost and then restated to reflect replacement cost, which is not in excess of market value. Cost of sales represents the estimated replacement cost at the time sales were realized, expressed in constant pesos at the end of the year.

IV. Investment in shares of affiliated companies.- Investments in companies in which the Company has an ownership interest of between 10% and 50% and for which the Company exercises significant influence, are accounted for using the equity method. Investments in companies in which the Company has an ownership interest of less than 10% are recorded at cost and restated for changes in the NCPI.

V. Property, plant and equipment.- Through December 31, 1996, the values of property, plant and equipment were determined by an independent appraiser registered with the National Banking and Securities Commission ("NBSC").

Effective January 1, 1997, Bulletin B-10 eliminated the use of appraisals to present property, plant and equipment in the financial statements, and currently is restated as follows:

The appraised value of imported machinery as of December 31, 1996, as well as the cost of subsequent additions to such machinery, were restated based on the rate of inflation in the respective country of origin and then translated using the prevailing exchange rate at the balance sheet date (specific inflation factors).

The appraised value of land, buildings and other fixed assets of domestic origin at December 31, 1996, and the cost of subsequent additions to such assets were restated based on the NCPI.

Depreciation is computed on the restated values, using the straight-line method based on the estimated useful lives of the assets as determined periodically by management based on technical studies.

VI. Exchange differences.- Transactions in foreign currency are recorded at the exchange rate at the time of the transactions. Exchange differences are determined from the date of the transactions to the time of settlement or valuation at the balance sheet date and are charged or credited to income.

VII. Labor obligations.- Under Mexican labor law, employees are entitled to a compensation payment ("seniority premium") upon death, dismissal or at retirement after 15 or more years of service. Seniority premium costs are recognized periodically during the years of service rendered by employees, based on actuarial computations made by an independent actuary, using the projected unit credit method and financial assumptions, net of inflation, as required by Mexican Accounting Principles Bulletin D-3 ("Labor Obligations"). Termination payments are charged to income in the year in which the decision to dismiss an employee is made.

VIII. Income taxes and employee profit sharing.- Effective January 1, 2000, the Company adopted the requirements of the Mexican Accounting Bulletin D-4, "Accounting for Income Tax, Asset Tax and Employee Profit Sharing." Bulletin D-4 requires the recognition of deferred taxes on all temporary differences in balance sheet accounts for financial and tax reporting purposes, using enacted income tax rates. Through December 31, 1999, deferred taxes were recognized only on temporary differences that were considered to be non-recurring and that had a known turnaround period.

As established in Bulletin D-4, the cumulative effect of deferred taxes, at the beginning of 2000, was applied to stockholders' equity, without restating the financial statements of prior years.

The Company periodically evaluates the possibility of recovering deferred tax assets and if necessary, adjusts the related valuation reserve.

Employee profit sharing is a statutory obligation payable to employees that is determined in accordance with the provisions of both Mexican labor and income tax law.

In conformity with Bulletin D-4, deferred employee profit sharing is recognized only on temporary differences determined in the reconciliation of current year net income for financial and tax reporting purposes, provided there is no indication that the related liability or asset will not be realized in the future.

Current year employee profit sharing is charged to results of operations and represents a current liability due and payable in a period of less than one year.

Asset tax, which is a minimum income tax is payable based on the average value of most assets net of certain liabilities. Since income tax may be credited against asset tax, the latter is actually payable only to the extent that it exceeds current year income tax.

Current year income tax is charged to results of operations and represents the tax liability due and payable in less than one year.

IX. Long-lived assets.- The Company periodically evaluates potential impairment loss relating to long-lived assets by assessing whether the unamortized carrying amount can be recovered over the remaining life of the assets through undiscounted future expected cash flows generated by the assets. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, a loss is recognized for the difference between the carrying value of the assets and the expected future undiscounted cash flows. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Effective January 1, 2004 the Company will be required to adopt Bulletin C-15 for Mexican GAAP which modifies the method in which companies must measure potential impairment losses relating to long-lived assets. Under the provisions of the bulletin an impairment loss of long-lived assets will be required to be recognized when the carrying value of assets, measured at the cash generating unit level, exceeds the recoverable value. A cash generating unit (joint venture, subsidiary, production line, division or segment) is the minimum identifiable grouping of assets that generate cash flows that are independent of other groups of assets. The recoverable value is defined as the greater of the value in use (present value of the estimated future net cash flows using an appropriate discount rate) or an estimated net selling price between interested parties, which is reasonable and verifiable. Impairment losses may be reversed in future periods when the recoverable value exceeds the carrying value of the related assets and it can clearly justified and demonstrated that the change is permanent and verifiable. The Company has evaluated the effect of this new rule standard, and it is not expected any change.

X. Revenue recognition.- The Company recognizes revenue when goods are shipped and invoiced. Revenue from retail operations is recognized, generally, at the point of sale. Returns and allowances are estimated and accrued based on historical results.

XI. Net income per unit.- Net income per unit is determined on the basis of the average weighted number of units issued and outstanding. The Company's units are each comprised of two common shares that are traded together as one unit. A "UB" unit is comprised of two Series "B" Shares and a "ULD" unit is comprised of one Series "L" Share and one Series "D" Share.

XII. Comprehensive income.- Mexican Accounting Bulletin B-4, "Comprehensive Income," became effective January 1, 2001. Bulletin B-4 establishes the rules with respect to reporting and presenting comprehensive income and the component elements of such income. Bulletin B-4 has no effect on net income or stockholders' equity. Comprehensive income consists of net income or loss for the year plus those items that are reflected directly in stockholders' equity and that do not constitute capital contributions, reductions or distributions such as deficit from restatement of stockholders' equity, effect of translation of foreign subsidiaries and deferred taxes allocated to equity.

GENERAL.-

On October 19th 1999 a merge agreement was approved by the Shareholders in which Ceramica Industrial Maquinada, S.A. de C.V. merged into Internacional de Ceramica, S.A. de C.V., which was a 100% subsidiary of Internacional de Ceramica, S.A. de C.V.

On April, 9th, 2002 a merge agreement was approved by the Shareholders in which Procesadora de Materiales Cerro Grande, S.A. de C.V. and Interacabados de Noroeste, S.A. de C.V. merged into Internacional de Ceramica, S.A. de C.V.. The merged companies were a 100% subsidiary of Internacional de Ceramica, S.A. de C.V.

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

DATA PER SHARE

CONSOLIDATED FINANCIAL STATEMENT

AUDITED CONSOLIDATED

REF

S

CONCEPTS

QUARTER OF PRESENT YEAR

QUARTER OF LAST YEAR

Amount

Amount

       

1

Basic profit per ordinary share (**)

0.33

0.88

2

Basic profit per preferent share (**)

0.00

0.00

3

Diluted profit per ordinary share (**)

0.00

0.00

4

Continuous operating profit per comun share (**)

2.36

2.92

5

Effect of discontinuous operating continuous operating profit per share (**)

0.00

0.00

6

Effect of extraordinary profit and loss on continuous operating profit per share (**)

0.00

0.00

7

Effect by changes in accounting policies continuous operatin profit per share (**)

0.00

0.00

8

Carrying value per share

10.27

8.95

9

Cash dividend acumulated per share

0.00

0.00

10

Dividend in shares per share

0.00 shares

0.00 shares

11

Market price to carying value

1.10 times

1.37 times

12

Market price to basic profit per ordinary share (**)

34.30 times

15.36 times

13

Market price to basic profit per opreferent share (**)

0.00 times

0.00 times

(**) TO CALCULATE THE DATA PER SHARE USE THE NET INCOME FOR THE LAST TWELVE MONTHS

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

RELATIONS OF SHARES INVESTMENTS

ANNEX 3

CONSOLIDATED

AUDITED

Final Printing

COMPANY NAME

MAIN ACTIVITY

NUMBER

OF

SHARES

OWNERSHIP

%

TOTAL AMOUNT

(Thousands of Pesos)

Aquisition Cost

Present Value

SUBSIDIARIES

             

1

ADHESIVOS Y BOQUILLAS INTERCERAMIC

PRODUCTOS PARA INSTALAR LOSETA

3

51.00

168

23,091

2

INTERCERAMIC, INC.

PRODUCCION Y VENTA DE LOSETA

4,000

100.00

2,423

365,418

3

INTERCERAMIC TRADING, CO.

SERVICIOS ADMINISTRATIVOS

10,000

100.00

3

1,356

4

RECUBRIMIENTOS INTERCERAMIC, S.A. DE C.V.

PRODUCCION Y VENTA DE LOSETA

20,114,738

50.01

1

232,578

5

DISTRIBUCION INTERCERAMIC

COMERCIALIZACION DE LOSETA

50,000

100.00

1

-21,690

6

INTERACABADOS DE OCCIDENTE

COMERCIALIZACION DE LOSETA

50,000

100.00

1

-3743

7

MATERIALES EN PROCESO

SERVICIOS ADMINISTRATIVOS

1,249,999

100.00

1

612

8

INTERCERAMIC DE OCCIDENTE

SERVICIOS ADMINISTRATIVOS

50,000

100.00

1

178

9

OPERADORA INTERCERAMIC

SERVICIOS ADMINISTRATIVOS

50,000

100.00

1

277

10

SERVICIOS ADMINISTRATIVOS INTERCERAMIC, S.A. DE C.V.

SERVICIOS ADMINISTRATIVOS

50,000

100.00

1

51

11

INTERACABADOS DEL CENTRO

SERVICIOS ADMINISTRATIVOS

50,000

100.00

1

13

             

TOTAL INVESTMENT IN SUBSIDIARIES

2,602

598,141

ASSOCIATED

             

1

CASINO DE CHIHUAHUA

ACCIONES

2

1.00

175

1

2

MAYO Y ASOCIADOS

ACCIONES

5,000

30.00

1

5

3

CAMPESTRE SAN FRANCISCO

ACCIONES

4

0.40

49

20

4

PROMOTORA DE HOSPITALES MEXICANOS

ACCIONES

4,031,903

5.70

1

4,759

5

PROM. DE INFRAESTRUCT. DE MEXICO

ACCIONES

5,253

5.50

1

838

6

ELECTRONIC PUBLISHING

ACCIONES

1,815

11.84

1,000

1,990

8

FIDEICOMISO SACRAMENTO

ACCIONES

1

0.00

1

81

             

TOTAL INVESTMENT IN SUBSIDIARIES

1,228

7,694

OTHER PERMANENT INVESTMENT

TOTAL

605,835

 


 

ANNEX NOT PRESENTED ANY MORE


STOCK EXCHANGE CODE: CERAMIC

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

MEXICAN STOCK EXCHANGE

ANNEX 5

CREDTIS BREAKDOWN

(Thousands of Pesos)

2003

Final Printing

CONSOLIDATED

AUDITED

Credit

Type

Institution

Amorti-

zation

Date

Rate

of

Interest

Denominated in Pesos

Amortization of Credtis in Foreign Currency With National Entities

Amortization of Credits in Foreign Currency with Foreign Entities

Until 1

Year

More than

1 Year

Current

Year

Until 1

Year

Until 2

Years

Until 3

Years

Until 4

Years

Until 5

Years

Current

Year

Until 1

Year

Until 2

Years

Until 3

Years

Until 4

Years

Until 5

Years

BANKS WITH WARRANTY

BANAMEX - REFACCIONARIO

NASSETTI ETTORE - DOCUMENTO

SINDICADO

7/31/2007

3.43%

0

0

202,398

224,700

252,788

280,875

BANCOMER - L. REVOLVENTE

2/6/2004

2.54%

0

0

56,175

BANORTE

1/30/2004

3.60%

0

0

56,169

BANAMEX - L. REVOLVENTE

4/19/2004

2.98%

0

0

67,801

WELLS FARGO

5/27/2006

2.94%

0

0

1,114

213,632

CAPITAL LEASE - PRENDARIO

10/25/2007

7.52%

0

0

             

198

172

142

110

   
                                   

OTHER FINANCIAL ENTITIES

ORACLE

7/1/2004

5.00%

0

0

2,114

                                   

TOTAL BANKS

   

0

             

0

385,969

224,872

466,562

280,985

0

 

Credit

Type

Institution

Amorti-

zation

Date

Rate

of

Interest

Denominated in Pesos

Amortization of Credtis in Foreign Currency With National Entities

Amortization of Credits in Foreign Currency with Foreign Entities

Until 1

Year

More than

1 Year

Current

Year

Until 1

Year

Until 2

Years

Until 3

Years

Until 4

Years

Until 5

Years

Current

Year

Until 1

Year

Until 2

Years

Until 3

Years

Until 4

Years

Until 5

Years

SUPPLIERS

FERRO MEXICANA

0

0

13,343

SACMI IMOLA

0

0

7,998

ABRASIVOS PORCELANICOS

0

0

6,488

KOHLER CO.

0

0

5,332

CARLSON SYSTEM

0

0

4,650

ESMALTES Y COLORANTES COVER

0

0

3,831

ESMALGLASS

0

0

3,667

ESMACER

0

0

3,161

MAQUINARIA SA DE CV

0

0

2,642

IPADEX

0

0

2,568

EMPAPQUES DE CARTON TITAN

3,437

0

ARTES GRAFICAS PANORAMA

1,423

0

RODAMIENTOS Y REPRESENT INDU

837

0

MATERIAS PRIMAS MINERALES DE

811

0

TECNICA ELECTRICA DE PARRAL

765

0

BEMIS DE MEXICO

579

0

CERAMIKON

574

0

ESPRO DE CHIHUAHUA SA DE CV

436

0

AMPARAN ALVIDREZ ROGELIO

430

0

SURTIDORA DE ABRASIVOS Y PRO

407

0

OTROS

   

145,014

0

             

56,562

         

TOTAL SUPPLIERS

   

154,713

               

110,242

         

Credit

Type

Institution

Amorti-

zation

Date

Rate

of

Interest

Denominated in Pesos

Amortization of Credtis in Foreign Currency With National Entities

Amortization of Credits in Foreign Currency with Foreign Entities

Until 1

Year

More than

1 Year

Current

Year

Until 1

Year

Until 2

Years

Until 3

Years

Until 4

Years

Until 5

Years

Current

Year

Until 1

Year

Until 2

Years

Until 3

Years

Until 4

Years

Until 5

Years

OTHER CURRENT LIABILITIES

AND OTHER CREDITS

     

79,651

0

             

51,320

         

TOTAL OTHER

   

79,651

0

             

51,320

         

GRAND TOTAL

   

234,364

0

0

0

0

0

0

0

0

547,531

224,872

466,562

280,985

0

 

* ALL CREDITS ARE DENOMINATED IN DOLLARS.

* THE EXCHANGE RATE BETWEEN THE MEXICAN PESO AND THE AMERICAN DOLLAR AT THE TIME THE INFORMATION WAS PRESENTED: $1 USD = $11.235 MXP.

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

TRADE BALANCE AND MONETARY POSITION IN FOREIGN EXCHANGE

(Thousands of Pesos)

ANNEX 6

AUDITED CONSOLIDATED

FOREIGN CURRENCY

POSITION

DOLLARS

THOUSANDS OF

DOLLARS

THOUSANDS OF

PESOS

OTHER CURRENCIES

THOUSANDS OF

DOLLARS

THOUSANDS OF

PESOS

TOTAL

THOUSANDS OF

PESOS

TOTAL ASSETS

154,154

1,731,923

0

0

1,731,923

LIABILITIES POSITION

135,231

1,519,315

0

0

1,519,315

SHORT TERM LIABILITIES POSITION

48,678

546,896

0

0

546,896

LONG TERM LIABILITIES POSITION

86,553

972,419

0

0

972,419

NET BALANCE

18,923

212,608

0

0

 

212,608

CURRENT RATE BETWEN THE MEXICAN PESO AND THE US DOLLAR AT THE TIME THIS INFORMATION WAS PRESENTED: $1 USD = 11.235 MXP.

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

INTEGRATION AND INCOME CALCULATION BY MONETARY POSITION

(Thousands of Pesos)

ANNEX 7

AUDITED CONSOLIDATED

MONTH

MONETARY

ASSETS

MONETARY

LIABILITIES

(ASSET) LIABILITIES

MONETARY

POSITION

MONTHLY

INFLATION

MONTHLY

(PROFIT)

AND LOSS

JANUARY

1,534,118

2,845,357

1,311,239

0.33

4,298

FEBRUARY

1,467,462

2,784,618

1,317,155

0.19

2,554

MARCH

1,490,271

2,855,416

1,365,145

0.68

9,263

APRIL

1,680,821

2,994,916

1,314,094

0.31

4,083

MAY

1,516,464

2,807,674

1,291,210

-0.29

-3,704

JUNE

1,450,405

2,781,092

1,330,687

0.05

612

JULY

1,482,186

2,893,874

1,411,688

0.14

2,032

AUGUST

1,369,222

2,838,277

1,469,054

0.22

3,180

SEPTEMBER

1,448,739

2,994,259

1,545,520

0.60

9,205

OCTOBER

1,488,421

2,988,035

1,499,614

0.31

4,635

NOVEMBER

1,395,245

2,927,364

1,532,119

0.61

9,395

DECEMBER

1,402,213

3,077,605

1,675,392

0.34

5,619

ACTUALIZATION

CAPITALIZATION

FOREIGN CORP:

OTHER

 

TOTAL

       

51,172

WE ARE INCLUDING THE MONETARY ASSETS AND THE LIABILITIES FROM OUR SUBSIDIARY LOCATED AT GARLAND, TX. TO REFLECT THE

EFECT FOR THE CONSOLIDATED MONETARY POSITION ACCORDING TO THE BULLETIN B-15.

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

BONDS AND MEDIUM TERM NOTES LISTING IN STOCK MARKET

(Thousands of Pesos)

ANNEX 8

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

DATA PER SHARE

CONSOLIDATED FINANCIAL STATEMENT

AUDITED CONSOLIDATED

PLANT

OR

CENTER

ECONOMIC

ACTIVITY

PLANT

CAPACITY

(1)

UTILIZATION

(%)

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

PRODUCCION DE LOSETA CERAMICA ESMALTADA

11,300,000

100.00

PLANTA AZULEJOS INTERCERAMIC

PRODUCCION DE LOSETA CERAMICA ESMALTADA

3,600,000

100.00

RECUBRIMIENTOS INTERCERAMIC, S.A. DE C.V.

PRODUCCION DE LOSETA CERAMICA ESMALTADA

6,000,000

100.00

ADHESIVOS Y BOQUILLAS, S. DE R.L. DE C.V.

PRODUCCION DE ADHESIVO Y BOQUILLAS PARA INSTALACI

67,200

85.00

INTERCERAMIC, INC.

PRODUCCION DE LOSETA CERAMICA ESMALTADA

3,100,000

100.00

ADHESIVOS Y BOQUILLAS, S. DE R.L. DE C.V.

PRODUCCION DE ADHESIVO Y BOQUILLAS PARA INSTALACI

90,000

55.00

(1) THE INSTALLED CAPCITY IS EXPRESSED IN SQ. METERS PER YEAR.

THE INSTALLED CAPACITY FOR ADHESIVOS Y BOQUILLAS AND ADHESIVOS Y BOQUILLAS SUR ARE EXPRESED IN TONS. FOR

THE REST OF THE SUBSIDIARIES, IT IS EXPRESSED IN SQ. METERS.

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

MAIN RAW MATERIALS

(Thousands of Pesos)

ANNEX 10

AUDITED CONSOLIDATED

DOMESTIC

MAIN

SUPPLIERS

FOREIGN

MAIN

SUPPLIERS

DOM.

SUBST.

COST

PRODUCTION

(%)

CLAY

PROCESADORA DE MATERIALES CER

7.71

FRITS

ESMALTES Y COLRANTES COVER

FRITS

COLOROBIA

S

2.15

ESMACER

ESMALGLASS

S

COLORS

CERDEC

COLORS

ESMACER

S

9.93

ESMALTES Y COLORANTES COVER

FERROMEXICANA

ESMACER

CORINDONES

IMPORTACIONES PROFESIONALES

0.53

PROINT

OXIDES

DE MATEO Y CIA

OXIDES

MINERA AUTLAN

S

0.06

IMPORTACIONES PROFESIONALES

MINERA AUTLAN

CERAMIC MATERIALS

DERIVADOS METALORGANICOS

CERAMIC MATERIALS

ALCOA INTERAMERICANA

S

2.95

MOLINOS DEL NORTE

KENTUCKY AND TENNESSEE

S

MAT PRIMAS MINERALES DE AHUAZ

FELDASPAR ORP

S

MINERA NYCO

MATERIAS PRIMAS DE LAMPAZOS

PACKING

EMPAQUES DE CARTON TITAN

PACKING

CARLSON SYSTEMS

S

5.65

DIAGRAPH

S

STONE CONTAINER

S

PACKAGING ENTERPRISE

S

TRIPOLIFOSPHIT OF SODIUM

CATALIZADORA INDUSTRIAL

GUM

QUIMICA AMTEX

2.23

CHEMICAL PRODUCTS

CHEMICAL PRODUCTS

MARDUPOL

S

 

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

2003

 

SELLS DISTRIBUTION BY PRODUCT

ANNEX 11

CONSOLIDATED

DOMESTIC SALES

Final Printing

AUDITED

MAIN PRODUCTS

TOTAL PRODUCTION

VOLUME

NET SALES

MARKET

SHARE

MAIN

COSTUMERS

AMOUNT

VOLUME

AMOUNT

(%)

TRADEMARKS

LOSETA CERAMICA ESM

20,995

1,797,200

18,020

1,542,611

19.00

INTERCERAMIC

DISTRIBUCION INTERC

OTROS

     

377,915

 

GRUPO COMERCIAL INT

         

INTERACABADOS DE OC

         

MAT ARQ Y DECORATIV

         

CERAMICA DEL BAJIO

         

SI S.A DE C.V.

         

INTERAMBIENTES CERA

         

PISOS Y BAÑOS, S.A.

         

PISOS Y RECUB CERAM

PROCERVER, S.A. DE

TOTAL

1,797,200

1,920,526

 

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

2003

 

SELLS DISTRIBUTION BY PRODUCT

ANNEX 11

FOREIGN SELLS

CONSOLIDATED

AUDITED

MAIN PRODUCTS

TOTAL PRODUCTION

NET SALES

DESTINATION

MAIN

VOLUME

AMOUNT

VOLUME

AMOUNT

TRADEMARKS

COSTUMERS

LOSETA CERAMICA ESM

   

9,831

1,216,080

U.S.A.

INTERCERAMIC

INTERCERAMIC INC.

OTROS

     

288,320

CANADA

A.OLEN

DALTILE

         

DALTILE

 

TOTAL

1,504,400

               

NOTES

             

* ACCORDING TO ESTIMATES MADE BY THE COMPANY FOR DOMESTIC MARKET, THE MARKET SHARE IS HIGHER THAN 19%.

 

* THE PRODUCTION OF THE OTHER NON TILE PRODUCTS ARE NOT SHOWED BECAUSE THOSE PRODUCTS ARE JUST FOR

COMERCIALIZATION AND NON PRODUCED BY THE COMPANY.

 


 

BOLSA MEXICANA DE VALORES, S.A. DE C.V.

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC

2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK

CHARACTERISTICS OF THE SHARES

ANNEX 12 - A

CONSOLIDATED

AUDITED

SERIES

NOMINAL

VALUE

VALID

CUPON

NUMBER OF SHARES

FIXED

PORTION

VARIABLE

PORTION

MEXICAN

SUSCRIPTION

CAPITAL STOCK

(Thousands of Pesos)

FIXED

VARIABLE

B

   

14,000,000

83,200,072

 

57,906,632

7,000

41,600

 

L

         

19,646,720

     

D

19,646,720

TOTAL

14,000,000

83,200,072

-

97,200,072

7,000

41,600

 

TOTAL NUMBER OF SHARES REPRESENTING THE PAID IN CAPITAL SOTCK ON THE DATE OF THE INFORMATION  97,200,072

SHARES PROPORTION BY:

 

CPO'S:

                 

UNITS:

                 

ADRS's:

                 

GDRS's

                 

ADS's

                 

GDS's:

                 

REPURCHASE OWN SHARES

                 
                   
     

NUMBER OF

MARKET VALUE OF THE SHARES

         
 

SERIES

 

SHARES

AT REPURCHASE VALUE

   

AT QUARTER

   
 

SHARES PROPORTION BY:

2 SHARES SERIES B FOR EACH UNIT UB. ONE SHARE SERIES L AND ONE SHARE SERIES D FOR EACH UNIT ULD.

5 LIMITED VOTING UNITS REPRESENTS ONE ADS.

 

ACCORDING TO THE FIXED POSITION OF THE TOTAL NUMBER OF SHARES, AND THE FIXED CAPITAL STOCK, THIS AMOUNT

CAN BE INDISTINTLY OF ANY SERIES, B, L OR D.

 


 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC QUARTER: 4 YEAR 2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

MAIN PROJECTS OF THE COMPANY

CONSOLIDATED

ANNEX 13   Final Printing

 

1.- REPLACEMENTS OF KILNS.- As of the date of the present report, the Company has as a main project the replacement of two kilns of one of the plants located in Chihuahua, Mexico. As of the date the projects stands at a final phase and expected to be completed during the first quarter of 2004.

The percentage completed of this project as of December 31, 2003, is approximately of 95 percent.


MEXICAN STOCK EXCHANGE

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC QUARTER: 4 YEAR 2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

CONVERSION OF FOREIGN EXCHANGE TRANSACTIONS

AND FINANCIAL STATEMENTS

CONSOLIDATED

ANNEX 14; Final Printing

 

Pursuant to Bulletin B-15 financial statements previously reported have been restated to take into account a common actualization factor determined by weighting the Company's respective sales in Pesos and Dollars, each as effected by inflation and devaluation in the applicable currencies. This factor for the 12 month period from January '03 to December '03 was 6.82% compared to the inflation for the same period of 3.98%.

 


 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC QUARTER: 4 YEAR 2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

 

INFORMATION OF THE ISSUER

LEGAL NAME: Internacional de Cerámica, S.A. de C.V.

ADDRESS: Av. Carlos Pacheco #7200

Sector 26

C.P. 31060

CITY & STATE: Chihuahua, Chih.

Phone Number: (52-614) 429-1111

Fax: (52-614) 429-1166

E-MAIL: investor@interceramic.com

FISCAL INFORMATION OF THE ISSUER

LEGAL NAME: Internacional de Cerámica, S.A. de C.V.

ADDRESS: Av. Carlos Pacheco #7200

Sector 26

C.P. 31060

CITY & STATE: Chihuahua, Chih.

RESPONSIBLE OF PAYMENT

NAME: Lic. Jesus Olivas Corral

ADDRESS: Av. Carlos Pacheco #7200

Sector 26

C.P. 31060

CITY & STATE: Chihuahua, Chih.

Phone Number: (52-614) 429-1261

Fax: (52-614) 429-1166

E-MAIL: jolivas@interceramic.com

PRINCIPAL OFFICERS

TITLE BMV: Chairman of the Board of Directors

TITLE: Chairman of the Board of Directors

NAME: Don Oscar Almeida Chabre

ADDRESS: Av. Carlos Pacheco #7200

Sector 26

C.P. 31060

CITY & STATE: Chihuahua, Chih.

Phone Number: (52-614) 429-1127

Fax: (52-614) 429-1166

E-MAIL: investor@interceramic.com

TITLE BMV: President and Vice Chairman of the Board

TITLE: President and Vice Chairman of the Board

NAME: Lic. Victor Almeida Garcia

ADDRESS: Av. Carlos Pacheco #7200

Sector 26

C.P. 31060

CITY & STATE: Chihuahua, Chih.

Phone Number: (52-614) 429-1127

Fax: (52-614) 429-1166

E-MAIL: investor@interceramic.com

 

TITLE BMV: Chief Financial Officer

TITLE: Chief Financial Officer

NAME: Lic. Jesus Olivas Corral

ADDRESS: Av. Carlos Pacheco #7200

Sector 26

C.P. 31060

CITY & STATE: Chihuahua, Chih.

Phone Number: (52-614) 429-1261

Fax: (52-614) 429-1166

E-MAIL: jolivas@interceramic.com

 

TITLE BMV: Responsible of reporting quarterly information

TITLE: Chief Financial Officer

NAME: Lic. Jesus Olivas Corral

ADDRESS: Av. Carlos Pacheco #7200

Sector 26

C.P. 31060

CITY & STATE: Chihuahua, Chih.

Phone Number: (52-614) 429-1261

Fax: (52-614) 429-1166

E-MAIL: jolivas@interceramic.com

TITLE BMV: Second responsible of reporting quarterly information

TITLE: Investor Relations

NAME: Lic. Luis Fernando Cano B.

ADDRESS: Av. Carlos Pacheco #7200

Sector 26

C.P. 31060

CITY & STATE: Chihuahua, Chih.

Phone Number: (52-614) 429-1264

Fax: (52-614) 429-1166

E-MAIL: lfcano@interceramic.com

 

TITLE BMV: Responsible of legal department

TITLE: Chief Financial Officer

NAME: Lic. Jesus Olivas Corral

ADDRESS: Av. Carlos Pacheco #7200

Sector 26

C.P. 31060

CITY & STATE: Chihuahua, Chih.

Phone Number: (52-614) 429-1261

Fax: (52-614) 429-1166

E-MAIL: jolivas@interceramic.com

 

TITLE BMV: Secretary of the Board of Directors

TITLE: Secretary of the Board of Directors

NAME: Lic. Norma Almeida de Champion

ADDRESS: Av. Carlos Pacheco #7200

Sector 26

C.P. 31060

CITY & STATE: Chihuahua, Chih.

Phone Number: (52-614) 429-1261

Fax: (52-614) 429-1166

E-MAIL: investor@interceramic.com

 

TITLE BMV: Responsible of information to investors

TITLE: Chief Financial Officer

NAME: Lic. Jesus Olivas Corral

ADDRESS: Av. Carlos Pacheco #7200

Sector 26

C.P. 31060

CITY & STATE: Chihuahua, Chih.

Phone Number: (52-614) 429-1261

Fax: (52-614) 429-1166

E-MAIL: jolivas@interceramic.com

 

TITLE BMV: Registered person for sending information via EMISNET

TITLE: Chief Financial Officer

NAME: Lic. Jesus Olivas Corral

ADDRESS: Av. Carlos Pacheco #7200

Sector 26

C.P. 31060

CITY & STATE: Chihuahua, Chih.

Phone Number: (52-614) 429-1261

Fax: (52-614) 429-1166

E-MAIL: jolivas@interceramic.com

 

TITLE BMV: Registered person for sending relevant releases via EMISNET

TITLE: Chief Financial Officer

NAME: Lic. Jesus Olivas Corral

ADDRESS: Av. Carlos Pacheco #7200

Sector 26

C.P. 31060

CITY & STATE: Chihuahua, Chih.

Phone Number: (52-614) 429-1261

Fax: (52-614) 429-1166

E-MAIL: jolivas@interceramic.com

 


MEXICAN STOCK EXCHANGE

SIFIC / ICS

STOCK EXCHANGE CODE: CERAMIC QUARTER: 4 YEAR 2003

INTERNACIONAL DE CERAMICA, S.A. DE C.V.

AUDITED

CONSOLIDATED

Final Printing

DECLARATION FROM THE COMPANY OFFICIAL RESPONSIBLE FOR THE INFORMATION

I hereby swear that the AUDITED financial information here in supplied to this stock exchange, corresponding to the period from 1 OF JANUARY TO 31 OF DECEMBER OF 2003 AND 2002 is that obtained form our authorized accounting registers and is result of the application of the accounting principles and norms accepted and stated by the Mexican Institute of Public Accountants and in the provisions of the Mexican National Bank and Stock Commission (Comision Nacional Bancaria y de Valores).

The accounting principles used by this company and the processing of the data for the period to which the said information refers were applied using the same bases as for the similar of the previous year.

 

________________________________                         _________________________________

LIC.VICTOR ALMEIDA GARCIA                                  LIC. JESUS OLIVAS CORRAL    

CHIEF EXECUTIVE OFFICER                                        CHIEF FINANCIAL OFFICER     

 

CHIHUAHUA, CHIH. AT APRIL 20, 2004