6-K 1 form6k.txt FORM 6-K - PRESS RELEASE SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 March 31, 2004 Commission File Number 1-12752 Glassworks of Chile (Translation of registrant's name into English) Hendaya 60 Las Condes Santiago, Chile (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F /X/ Form 40-F / / Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____ 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/ CRISTALERIAS DE CHILE (THE "COMPANY") REPORT ON FORM 6-K TABLE OF CONTENTS 1. A free English translation of a press release dated March 29, 2004. [GRAPHIC OMITTED] FOR IMMEDIATE RELEASE NYSE: CGW Santiago: CRISTALES www.cristalchile.com CONTACT IN SANTIAGO: Ricardo Dunner Head of Investor Relations PH: (562) 787-8855 FAX: (562) 787-8800 EMAIL: ir@cristalchile.cl CRISTALERIAS DE CHILE REPORTS ITS RESULTS FOR FOURTH QUARTER AND FULL YEAR ENDED DECEMBER 31, 2003 =============================================================================== Santiago, Chile (March 29, 2004) - Cristalerias de Chile S.A. ("Cristalerias"), a Chilean conglomerate and the largest producer of glass containers in Chile, today announced its results for the fourth quarter and full year ended December 31, 2003. All figures have been prepared according to Chilean GAAP and are stated in constant Chilean Pesos and in US Dollars at Ch$593.80/US$1, the exchange rate at the close of December 31, 2003. 4Q03 HIGHLIGHTS (vs. 4Q02): o Consolidated sales increased 1.0% o Operating income down 9.6% o EBITDA down 6.1% o Non-operating loss of Ch$6,771 million in 4Q03 compared to an Ch$8,310 million loss in 4Q02. o Net income of Ch$4,011 million, compared to Ch$1,693 million income in 4Q02. o Earnings per ADR reached US$0.32 YE 03 HIGHLIGHTS (vs. YE 02): o Consolidated sales increased 4.5% o Operating income down 10.4% o EBITDA down 6.0% o Non-operating loss of Ch$28,027 million compared to a loss of Ch$13,132 million in 2002. o Net income reached Ch$6,427 million compared to Ch$17,837 million income reported in 2002. o Earnings Per ADR reached US$0.51 CONSOLIDATED REVENUE 4Q03 vs. (in Ch$ millions) 4Q03 4Q02 4Q02 YE03 ==== ==== ======= ==== TOTAL REVENUE 46,664 46,209 1.0% 169,941 Cristalchile (glass containers) 20,180 20,837 -3.2% 74,549 Vina Santa Rita (wine) 20,406 18,243 11.9% 74,940 CIECSA (media) 7,838 8,423 -6.9% 26,545 Adjustments 1,760 1,294 N/A 6,093 RELATED COMPANIES Metropolis-Intercom (cable) 11,314 11,621 -2.6% 44,976 Envases CMF (plastic containers) 9,583 11,390 -15.9% 34,543 [logo] Cristalchile 4Q03 and YE 2003 FOURTH QUARTER 2003 RESULTS CONSOLIDATED RESULTS 4Q03 Revenue Breakdown [pie chart: Glass 42%, Wine 42%, Media 16%] During 4Q03, Cristalerias' total consolidated revenue reached Ch$46,664 million, 1.0% over 4Q02. This increase was due to improved sales in Santa Rita (11.9%); partially compensated by lower sales in the glass container business (-3.2%) and CIECSA (-6.9%). Adjustments for factors such as intercompany sales reached Ch$1,760 million during the quarter. Consolidated operating income decreased by 9.6% during the quarter, totaling Ch$10,649 million (US$17.9 million). This includes Ch$7,065 million from the glass container business (Ch$6,670 million in 4Q02), Ch$1,888 million from Santa Rita (Ch$2,587 million in 4Q02) and Ch$1,720 million from CIECSA (Ch$2,558 million in 4Q02). During the quarter, Cristalerias had a Ch$4,011 million (US$6.8 million) net income, compared with a Ch$1,693 million (US$2.9 million) income in 4Q02. This is mainly explained by an improved consolidated non-operating loss of Ch$6,771 million (US$ 11.4 million) in 4Q03, compared to a non-operating loss of Ch$8,310 million (US$14.0 million) in 4Q02 and an income tax credit of Ch$242 million compared to a Ch$1,277 million income tax charge in 4Q02; partially compensated by the abovementioned lower operating result. The lower non-operating loss is mainly explained by a Ch$4,832 million loss from exchange differences (Ch$6,629 million loss in 4Q02) and lower interest expenses (Ch$1,665 million in 4Q03 vs. Ch$2,291 million in 4Q02). The aforementioned was partially compensated by a Ch$580 million net loss from subsidiaries that do not consolidate (Ch$259 million income in 4Q02). The net loss from subsidiaries includes a Ch$1,047 million charge (Ch$1,044 million charge in 4Q02) corresponding to goodwill amortization, which does not constitute cash flow. EBITDA: Operating cash generation decreased from Ch$15,419 million (US$26.0 million) in 4Q02 to Ch$14,484 million (US$24.4 million) in 4Q03. EBITDA margin for the quarter was 31.0% (33.4% in 4Q02). The following analysis explains Cristalerias' results based on individual financial statements, as well as those of its main subsidiaries: 2 [logo] Cristalchile 4Q03 and YE 2003 PACKAGING BUSINESS Glass Glass packaging sales during the quarter decreased by 3.2% to Ch$20,180 million (US$34.0 million). Volume sales increased by 5.0%, totaling 73,663 tons. Wine bottle sales decreased by 0.4% mainly due to a decrease in prices, which are Dollar-indexed. Soft-drink bottle sales decreased by 14.4%, mainly due to inventory build-up of the 237cc returnable bottle during the rest of the year, that also affected sales of one-way formats. Liquor bottle sales decreased by 11.9%, due to a stagnation of the pisco market during 4Q03. Containers for the food industry decreased due to clients' stock adjustments. Beer bottle sales increased by 4.7%, due to higher sales of both returnable and one-way formats. GLASS ---------------------------------------------------------------- 4Q03 vs. 4Q03 4Q02 4Q02 ------ ------ --------- Net Sales(in Ch$ millions) 20,180 20,837 -3.2% Wine 11,791 11,845 -0.4% Beer 3,823 3,650 4.7% Soft Drinks 2,773 3,238 -14.4% Liquor 1,352 1,534 -11.9% Food 326 450 -27.4% Pharmaceutical 113 122 -6.9% Volume in tons 73,663 70,182 5.0% Operating income increased by 5.9% to reach Ch$7,065 million (US$11.9 million) due to lower costs. Operating margins increased to 35.0% (32.0% in 4Q02). Results for 4Q03 include a non-operating loss of Ch$2,479 million (US$4.2 million), compared to a Ch$4,268 million (US$7.2 million) non-operating loss in 4Q02. The Company registered a loss from exchange differences of Ch$2,812 million (Ch$4,913 million loss in 4Q02) and lower interest expenses. The aforementioned was partially compensated by a lower income from subsidiaries that reached Ch$1,327 million (Ch$2,071 million income in 4Q02). EBITDA: Operating cash generation increased by 5.8% reaching Ch$9,671 million (US$16.3 million) in 4Q03. EBITDA margin reached 47.9% (43.9% in 4Q02). 3 [logo] Cristalchile 4Q03 and YE 2003 Plastic During 4Q03, Envases CMF posted a Ch$700 million (US$ 1.2 million) net income, compared to a Ch$2,121 million (US$ 3.6 million) net income in 4Q02. Total sales reached Ch$9,583 million (US$16.1 million), compared with Ch$11,390 million (US$19.2 million) in 4Q02. Volumes decreased by 12.8%, reaching 6,555 tons, mainly due to changes in sales composition to some Coca-Cola bottlers in Chile and a decrease of pre-forms volume exports; while prices decreased by 7.1%. Operating income reached Ch$802 million, compared to Ch$2,376 million in 4Q02, due to the lower sales level and a change in product mix, which resulted in a lower unitary contribution margin. The Company had a Ch$111 million non-operating income (Ch$191 million non-operating income in 4Q02). EBITDA: Operating cash generation reached Ch$1,915 million (US$3.2 million) in 4Q03, compared to Ch$3,540 million (US$6.0 million) in 4Q02. EBITDA margin was 20.0% (31.1% in 4Q02). 4 [logo] Cristalchile 4Q03 and YE 2003 WINE BUSINESS During 4Q03, Santa Rita's consolidated sales increased by 11.9%, totaling Ch$20,406 million (US$34.4 million). The Company's profits came in at Ch$190 million (US$0.3 million), compared to Ch$991 million (US$1.7 million) in 4Q02, due to both lower operating and non-operating results. In the domestic market, Santa Rita's volumes increased by 7.7% compared to 4Q02 due to an increase in market share. Prices fell by 2.6% in real terms as a result of sharp competition. These conditions led net sales in the domestic market to grow by 4.9%. In the export market sales volume grew by 18.4%, due to higher sales to all markets. During the quarter, exports of US$18.0 million accounted for 55.2% of total revenues. The average price in Dollars per case in the export market reached US$36.9 (US$31.9 in 4Q02), compared with an industry average of US$23.3 (US$22.9 in 4Q02). Operating income was Ch$1,888 million, compared to Ch$2,587 million in 4Q02 mainly due to an increase in cost of musts. Operating margin was 9.3% (14.2% in 4Q02). EBITDA: Operating cash generation was Ch$2,914 million (US$4.9 million) during the quarter, compared to Ch$3,503 million (US$5.9 million) in 4Q02. Accordingly, EBITDA margin was 14.3% (19.2% in 4Q02). SANTA RITA -------------------------------------------------------------------- 4Q03 vs. 4Q03 4Q02 4Q02 ------ ------ -------- Net Sales (in Ch$ millions) 20,406 18,243 11.9% Domestic 8,556 8,156 4.9% Exports 11,263 9,551 17.9% Others 587 536 9.5% Volume Exports (Th cases) 487 412 18.4% Domestic (Th liters) 16,407 15,236 7.7% Price per case - Export Mkt. (US$) 36.9 31.9 15.8% Avg. price per case. - Domestic Mkt. (Ch$) 4,689 4,815 -2.6% 5 [logo] Cristalchile 4Q03 and YE 2003 MEDIA BUSINESS Television Broadcasting, Financial Printed Press, and Other Media Media Subsidiaries [graph (i): CGW (parent) owns 98.5% of CIECSA which owns 99.9% of MEGA and 37.4% of El Diario.] [graph (ii): CGW (parent) owns 99.9% of Cristalchile Comunicaciones which owns 50.0% of Cordillera Comunicaciones which owns 95.6% of Metropolis-Intercom.] During 4Q03, CIECSA reported a Ch$1,755 million (US$3.0 million) net income, compared to Ch$2,136 million (US$3.6 million) income in 4Q02. MEGA, CIECSA's main subsidiary, reached an average viewership share of 26.5% in 4Q03 (26.8% in 4Q02). Net sales decreased by 7.1 % in 4Q03 to reach Ch$7,708 million (US$13.0 million). MEGA had a Ch$1,750 million (US$2.9 million) operating income, compared to Ch$2,571 million in 4Q02, due to higher internal productions that increased costs. Therefore, MEGA posted a Ch$1,582 million net income, compared to Ch$2,010 million net income in 4Q02. EBITDA: CIECSA's operating cash generation reached Ch$1,935 million (US$3.3 million) in 4Q03, compared to Ch$2,767 million (US$4.7 million) in 4Q02. EBITDA margin was 24.7% (32.9% in 4Q02). Cable Television Cristalchile Comunicaciones S.A. (Cristalerias' wholly-owned subsidiary), owner of 50% of Cordillera Comunicaciones Ltda., had a net loss of Ch$1,563 million (US$2.6 million) during the quarter compared to a net loss of Ch$1,894 (US$3.2 million) in 4Q02. Similarly, Cordillera Comunicaciones Ltda. (owner of Metropolis-Intercom S.A.) had a net loss of Ch$3,016 million (US$5.1 million) in 4Q03, compared to a net loss of Ch$3,787 million (US$6.4 million) in 4Q02. The aforementioned result includes a goodwill amortization charge of Ch$1,047 million (Ch$1,044 million in 4Q02). 6 [logo] Cristalchile 4Q03 and YE 2003 During 4Q03 Metropolis-Intercom S.A. posted sales of Ch$11,314 million (US$19.1 million), compared to Ch$11,621 million (US$19.6 million) in 4Q02. At operating level, the Company renegotiated programming costs with content providers. Metropolis-Intercom posted a net loss of Ch$2,152 million (US$3.6 million), compared to a net loss of Ch$2,683 million (US$4.5 million) in 4Q02. The latter includes Ch$3,444 million (US$5.8 million) depreciation charge, compared to Ch$3,175 million (US$5.3 million) charge in 4Q02, mainly coming from the HFC network bought in July 2000. The Company ended the period with 231,925 basic subscribers (235,596 in 3Q03), 34,462 broad-band internet subscribers (6.9% over 3Q03) and 3,639 IP telephony customers. METROPOLIS-INTERCOM ------------------------------------------------------------------- 4Q03 vs. 12/31/03 09/30/03 3Q03 --------- --------- --------- Basic Subscribers(1) 231,925 235,596 -1.6% Premium customers 31,499 33,305 -5.4% Internet customers 34,462 32,227 6.9% IP Telephony customers 3,639 - N/A Home Passed 1,192,891 1,187,296 0.5% 4Q03 vs. 4Q03 4Q02 4Q02 --------- --------- --------- Sales (Ch$ Million) 11,314 11,621 -2.6% Net Profit (Loss) (Ch$ Million) (2,152) (2,683) 19.8% (1) Includes Premium and Internet customers. 7 [logo] Cristalchile 4Q03 and YE 2003 FULL YEAR 2003 RESULTS CONSOLIDATED RESULTS YE03 Revenue Breakdown [pie chart: Glass 42%, Wine 43%, Media 15%] The Company consolidates its results with those of Vina Santa Rita, CIECSA, Cristalchile Comunicaciones, Cristalchile Inversiones and Apoger. During 2003, Cristalerias' total consolidated revenue reached Ch$169,941 million (US$286.2 million), a 4.5% increase over 2003. The main factors behind this growth include improved sales in the glass container (+3.9%), media (+5.9%) and wine (+3.5%) businesses. Consolidated operating income totaled Ch$37,642 million (US$63.4 million), compared to Ch$42,026 million in 2002. This includes Ch$24,347 million from the glass container business (Ch$24,229 million in 2002), Ch$9,730 million from Santa Rita (Ch$11,746 million in 2002) and Ch$3,521 million from CIECSA (Ch$5,978 million in 2002). Year ending 2003, Cristalerias' net income was Ch$6,427 million (US$10.8 million), compared to Ch$17,837 million (US$30.0 million) in 2002. This is mainly explained by a consolidated non-operating loss of Ch$28,027 million (US$47.2 million), compared to a non-operating loss of Ch$13,132 million (US$22.1 million) in 2002; in addition to the abovementioned lower operating result. This was partially compensated by lower charges for income tax and minority interest in 2003 (Ch$1,348 million and Ch$1,841 million respectively, compared to Ch$6,462 million and Ch$4,596 million charges in 2002, respectively). The consolidated non-operating loss is mainly explained by a loss from exchange differences of Ch$17,065 million in 2003, compared to a Ch$4,998 million income in 2002. This was partially compensated by a lower net loss from subsidiaries that do not consolidate of Ch$4,539 million (Ch$8,991 million loss in 2002), mainly due to improved results at Rayen Cura and Vina Los Vascos and a lower loss at Metropolis-Intercom. The net loss from subsidiaries includes a Ch$4,175 million charge (Ch$4,096 million charge in 2002) corresponding to goodwill amortization, which does not constitute cash flow. EBITDA: Operating cash generation reached Ch$52,369 million (US$88.2 million), compared to Ch$55,737 million (US$93.9 million) in 2002. EBITDA margin was 30.8% (34.3% in 2002). The following analysis explains Cristalerias' results based on individual financial statements, as well as those of its main subsidiaries: 8 [logo] Cristalchile 4Q03 and YE 2003 PACKAGING BUSINESS Glass The Company had non-consolidated sales of Ch$74,549 million (US$125.5 million), 3.9% higher than in 2002. Volume sales increased by 6.2%, totaling 259,639 tons. Wine bottle sales increased by 4.7% during the year mainly due to an increase in wine export volumes. Beer bottle sales increased by 5.2% due to higher sales of one-way formats, partially compensated by lower sales of returnable formats. Soft drink bottle sales decreased by 1.5% due to lower sales of one-way formats, partially compensated by higher sales of returnable formats due to the launching of a 237cc crown-top bottle. Liquor bottle sales increased by 7.5%, due to the launching of a 700cc format for a new pisco brand. Sales of containers for the food industry decreased due to the sluggish economic recovery, which affects sales of these formats. GLASS ------------------------------------------------------------------------------- YE03 vs. YE03 YE02 YE02 ------ ------ --------- Net Sales (in Ch$ millions) 74 549 71,768 3.9% Wine 46,421 44,343 4.7% Beer 11,258 10,698 5.2% Soft Drinks 9,162 9,304 -1.5% Liquor 5,760 5,359 7.5% Food 1,554 1,606 -3.3% Pharmaceutical 396 457 -13.5% Volume in tons 259,639 244,401 6.2% Operating income reached $24,347 million (US$41.0 million), compared to Ch$24,229 million (US$40.8 million) in 2002. Operating margin was 32.7% (33.8% in 2002). Higher costs of sales are due to products imported due to the reconstruction of furnace B. Net earnings for the period include a non-operating loss of Ch$16,456 million (US$27.7 million), compared to a non-operating loss of Ch$2,317 million (US$3.9 million) in 2002. During the period the Company registered a Ch$12,683 million loss from exchange differences (Ch$3,432 million income in 2002) and higher interest expenses; partially compensated by a lower net loss from subsidiaries (Ch$259 million loss in 2003, Ch$1,642 million loss in 2002) due to better results at Cristalchile Inversiones (40% owner of Rayen Cura) and Cristalchile Comunicaciones (50% owner of Metropolis-Intercom). Finally, the Company registered a Ch$1,464 million income tax charge, compared to Ch$4,075 million charge in 2002. EBITDA: Operating cash generation reached Ch$34,250 million (US$57.7 million), compared to Ch$33,335 million (US$56.1 million) in 2002. EBITDA margin for the period was 45.9% (46.4% in 2002). 9 [logo] Cristalchile 4Q03 and YE 2003 Plastic During 2003, Envases CMF posted a Ch$1,414 million (US$2.4 million) net income (Ch$2,576 million net income in 2002). Total sales reached Ch$34,543 million (US$58.2 million), compared with Ch$35,682 million (US$60.1 million) in 2002. Volumes decreased by 3.7%, reaching 23,252 tons, due to changes in sales composition to some Coca-Cola bottlers in Chile and a decrease of pre-forms volume exports. Prices decreased by 0.8%. Operating income reached Ch$3,022 million, compared to Ch$4,306 million in 2002, due to the lower sales level and a change in product mix, which resulted in a lower unitary contribution margin. The Company had a Ch$1,203 million non-operating loss (Ch$1,292 million non-operating loss in 2002). EBITDA: Operating cash generation was Ch$7,523 million (US$12.7 million) in 2003, compared to Ch$8,662 million (US$14.6 million) in 2002. EBITDA margin was 21.8% (24.3% in 2002). 10 [logo] Cristalchile 4Q03 and YE 2003 WINE BUSINESS During 2003, Santa Rita's consolidated sales totaled Ch$74,940 million (US$126.2 million), 3.5% over 2002. The Company's profits came in at Ch$3,915 million (US$6.6 million), compared to Ch$9,356 million (US$15.8 million) in 2002. These results are due to a decrease in both the operating but mainly the non-operating result, that registered a loss from exchange differences. In the domestic market, Santa Rita volumes were 3.3% over 2002. Prices dropped by 3.9% in real terms as a result of strong competition. These conditions led net sales in the domestic market to drop slightly by 0.7%. Regarding the export market, sales volume increased by 4.1%. During the year, exports at US$59.9 million accounted for 54.5% of total revenues (US$53.2 million in 2002). The average price in dollars per case reached US$33.1 (US$30.6 in 2002), compared with an industry average of US$23.5 (US$23.1 in 2002). By markets, the export increase breakdown is as follows: Latin America, 16.9%; Canada, 11.7%; Asia+Africa, 38.6%. Other markets remained almost unvaried. SANTA RITA YEO3 vs. YE03 YE02 YE02 ------- ------- -------- Net Sales (in Ch$ millions) 74,940 72,439 3.5% Domestic 32,389 32,632 -0.7% Export 40,841 37,969 7.6% Others 1,710 1,838 -7.0% Volume Exports (Th cases) 1,809 1,738 4.1% Domestic (Th liters) 64,547 62,474 3.3% Price per case - Export Mkt. (US$) 33.1 30.6 8.1% Avg. price per case - Domestics Mkt. (Ch$) 4,518 4,698 -3.9% EBITDA: Operating cash generation reached Ch$13,741 million (US$23.1 million) in 2003, compared to Ch$15,472 million (US$26.1 million) in 2002. EBITDA margin was 18.3% (21.4% in 2002). 11 [logo] Cristalchile 4Q03 and YE 2003 MEDIA BUSINESS Television Broadcasting, Financial Printed Press and Other Media During 2003, CIECSA reported a net profit of Ch2,581 million (US$4.3 million) compared to a net profit of Ch$3,179 million (US$5.4 million) in 2002. MEGA, CIECSA's main subsidiary, reached an average viewership share of 23.9% during the period(1) (26.1% in 2002). The Company increased net sales by 5.6% reaching Ch$26,182 million (US$44.1 million). MEGA had a Ch$3,505 million operating income, compared to Ch$6,024 million operating income in 2002, as higher internal productions resulted in higher costs. Net income reached Ch$2,607 million (US$4.4 million), compared to Ch$3,708 million (US$6.2 million) in 2002. EBITDA: CIECSA's operating cash generation reached Ch$4,334 million (US$7.3 million), compared to Ch$6,858 million (US$11.5 million) during 2002. EBITDA margin was 16.3% (27.4% in 2002). Cable Television Cristalchile Comunicaciones S.A. (Cristalerias wholly-owned subsidiary), owner of 50.0% of Cordillera Comunicaciones Ltda. had a net loss of Ch$6,813 million (US$11.5 million) during the year compared with a net loss of Ch$8,613 million (US$14.5 million) in 2002. Similarly, Cordillera Comunicaciones Ltda. (owner of 95.6% of Metropolis-Intercom S.A.) posted a net loss of Ch$13,514 million (US$22.8 million) in 2003, compared to a net loss of Ch$17,217 million (US$29.0 million) in 2002. The aforementioned result includes a goodwill amortization charge of Ch$4,175 million for the year (Ch$4,096 million in 2002). (1) Measured between 7:30AM and 1:30AM (i.e.: 18 hours daily) from Monday to Sunday. 12 [logo] Cristalchile 4Q03 and YE 2003 During 2003 Metropolis-Intercom S.A. posted sales of Ch$44,976 million (US$75.7 million), compared to Ch$46,743 million in 2002. At operating level, the Company renegotiated programming costs with content providers. Metropolis-Intercom posted a net loss of Ch$9,546 million (US$16.1 million), compared to a net loss of Ch$13,014 million (US$21.9 million) in 2002. The latter includes a depreciation charge of Ch$13,484 million (US$22.7 million) compared to Ch$11,653 million (US$19.6 million) charge in 2002 coming mainly from the HFC network acquired in July 2000. The Company ended the period with 231,925 basic subscribers (238,725 in 2002), 34,462 broad-band Internet subscribers (46.3% over 2002) and 3,639 IP telephony customers. METROPOLIS-INTERCOM 12/31/03 12/31/02 % Change --------- --------- -------- Basic Subscribers(1) 231,925 238,725 -2.9% Premium customers 31,499 31,840 -1.1% Internet customers 34,462 23,559 46.3% IP Telephony customers 3,639 - N/A Home Passed 1,192,891 1,128,247 5.7% YTD03 vs. YTD03 YTD02 YTD02 ------ ------- -------- Sales (Ch$ Million) 44,976 46,743 -3.8% Net Profit (loss)(Ch.$ Million) (9,546) (13,014) 26.6% (1) Includes Premium and Internet customers. ############# This release may contain certain forward-looking statements (as that term is used in U.S. securities laws) regarding anticipated results of operations, financial condition, business operations or strategy of Cristalerias de Chile or its consolidated subsidiaries. Forward-looking statements may be identified by the use of words such as "anticipates," "believes," expects," "predicts," intends," "estimates," "should" or "may" or similar expressions relating to statements that are not of historical facts. Such forward-looking statements are believed to be reasonable, but are not guarantees of future performance. Actual results could vary from our objectives or expectations due to many factors including, among others, changes in consumer beverage preferences, new technologies, a downturn in the Chilean wine industry, significant disruption of the Chilean media market, the macroeconomic performance of Chile and the behavior of Latin American markets more generally. 13 [logo] Cristalchile CRISTALERIAS DE CHILE S.A. CONSOLIDATED FINANCIAL STATEMENTS (Restated for general price-level changes and expressed in millions of Chilean Pesos as of December 31, 2003) 1 US Dollar = 593.80 Chilean Pesos BALANCE SHEET As of December 31 2003 2002 ASSETS MCh$ MCh$ ------ ------- ------- Cash, time deposits, marketable securities 80,150 99,262 Receivables 46,167 43,934 Inventories, net 31,888 32,130 Other current assets 6,631 3,706 TOTAL CURRENT ASETS 164,836 179,031 NET P.P.&E. 136,141 128,697 Investment in related companies 103,059 110,749 Long-term receivables 9,189 10,019 Goodwill on investments 826 826 Accounts receivable, related companies 3 1 Others 23,892 27,679 TOTAL OTHER ASSETS 136,969 149,275 TOTAL ASSETS 437,946 457,003 LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Current portion of long-term & short-term debt 6,024 6,555 Dividends payable 504 730 Accounts and notes payable 13,433 16,558 Provisions, withholdings, income taxes 14,133 14,216 Advances from customers 3,036 1,635 TOTAL CURRENT LIABILITIES 37,129 39,693 Long-term bank liabilities and bonds payable 122,970 134,352 Miscellaneous creditors 272 2,520 Provisions and others 11,570 9,674 TOTAL LONG-TERM LIABILITIES 134,813 146,546 MINORITY INTEREST 37,682 37,120 TOTAL SHAREHOLDERS' EQUITY 228,322 233,643 TOTAL LIAB. & SHAREHOLDERS' EQUITY 437,946 457,003 14 STATEMENT OF INCOME ------------------- Full Year Fourth ended December 31 quarter 2003 2002 2003 2002 MCh$ MCh$ MCh$ MCh$ ----------------- -------------- OPERATING RESULTS: Net sales 169,941 162,668 46,664 46,209 Cost of sales (105,686) (95,726) (27,779) (27,450) Selling and administrative expenses (26,614) (24,916) (8,236) (6,979) OPERATING INCOME 37,642 42,026 10,649 11,780 NON-OPERATING RESULTS: Cordillera Comunicaciones Ltda (6,803) (8,612) (1,554) (1,897) Editorial Zig-Zag 24 43 186 172 Vina Los Vascos S.A. 689 481 211 419 Rayen Cura S.A.I.C. 922 (2,145) 204 481 Envases CMF 707 1,288 350 1,060 Ediciones Chiloe (78) (45) 23 21 Others (0) (1) (0) 3 ---------------------------------------------------- Equity in net income related companies (net) (4,539) (8,991) (580) 259 Interest income (expense) net (4,236) (4,330) (1,247) (1,650) Other nonrecurring income (net) (808) (2,184) 158 (357) Amortization of goodwill (577) (653) (115) (179) Price-level restatement (803) (1,971) (156) 246 Exchange Rate Variations (17,065) 4,998 (4,832) (6,629) NON-OPERATING INCOME (28,027) (13,132) (6,771) (8,310) Income tax (1,348) (6,462) 242 (1,277) Extraordinary Items - - - - Minority interest (1,841) (4,596) (109) (500) NET INCOME 6,427 17,837 4,011 1,693 15 [logo] Cristalchile CRISTALERIAS DE CHILE S.A. INDIVIDUAL FINANCIAL STATEMENTS (Restated for general price-level changes and expressed in millions of Chilean Pesos as of December 31, 2003) 1 US Dollar = 593.80 Chilean Pesos BALANCE SHEET ------------- As of December 31 2003 2002 ASSETS Mch$ MCh$ ------ ------- ------- Cash, time deposits, marketable securities 64,479 78,158 Receivables 23,687 22,942 Inventories, net 4,749 5,369 Other current assets 2,828 2,250 TOTAL CURRENT ASETS 95,743 108,719 NET P.P.&E 77,233 69,976 Investment in related companies 146,569 146,046 Long-term receivables 134 171 Goodwill on investments 1,893 2,064 Accounts receivable, related companies 20,789 23,951 Others 11,206 13,444 TOTAL OTHER ASSETS 180,590 185,676 TOTAL ASSETS 353,566 364,371 LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Current portion of long-term debt 1,826 1,898 Dividends payable 503 729 Accounts and notes payable 5,772 5,995 Provisions, withholdings, income taxes 7,923 7,563 TOTAL CURRENT LIABILITIES 16,024 16,185 Long-term bank liabilities and bonds payable 99,062 105,627 Miscellaneous creditors 149 887 Provisions 7,539 5,627 Others 2,471 2,401 TOTAL LONG-TERM LIABILITIES 109,221 114,543 TOTAL SHAREHOLDERS' EQUITY 228,322 233,643 TOTAL LIAB. & SHAREHOLDERS' EQUITY 353,566 364,371 16 STATEMENT OF INCOME ------------------- Full Year Fourth ended December 31 quarter 2003 2002 2003 2002 MCh$ MCh$ MCh$ MCh$ ------------------- ---------------- OPERATING RESULTS: Net sales 74,549 71,768 20,180 26,837 Cost of sales (44,636) (41,860) (11,452) (12,632) General and administrative expenses (5,567) (5,679) (1,663) (1,536) OPERATING INCOME 24,347 24,229 7,065 6,670 NON-OPERATING RESULTS: Cristalchile Comunicaciones (6,813) (8,613) (1,563) (1,894) S.A. Vina Santa Rita 2,118 5,061 97 607 Envases CMF S.A. 707 1,288 350 1,060 Ciecsa S.A. 2,541 3,124 1,728 2,099 Cristalchile Inversiones S.A. 1,189 (2,502) 715 199 Others (1) (1) (0) (1) --------------------------------------------------- Equity in net income related companies (net) (260) (1,642) (1,327) 2,071 Interest income net (2,481) (2,580) (823) (1,196) Other nonrecurring income (net) (379) (176) (42) (119) Amortization of goodwill (171) (171) (43) (43) Price-level restatement (481) (1,179) (87) (69) Exchange Rate Variations (12,683) 3,432 (2,812) (4,913) NON-OPERATING INCOME (16,456) (2,317) (2,479) (4,268) ======== ======= ======= ======= Income tax (1,464) (4,075) (576) (708) Amortization of negative goodwill - - - - Extraordinary Items - - - - NET INCOME 6,427 17,837 4,011 1,693 SALES VOLUME Th Tons Th Tons Th Tons Th Tons ======= ======= ======= ======= Glass sales in Th tons 259.6 244.4 73.7 70.2 17 Signature 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. Glassworks of Chile (Registrant) By: Benito Bustamante C. ------------------- Benito Bustamante C. Controller Date: March 31, 2004