Year over year consolidated sales increased 5.7 percent and EBITDA rose 17.8 percent. Consolidated EBITDA margins were up 160 basis points to 16.3 percent for the quarter. Excluding divestitures of Plasticos Bosco (Bosco) in April 2005, Quimica M in March 2006 and the acquisition of Vidrios Panamenos (VIPASA) in April 2006, consolidated sales rose 5.8 percent and consolidated EBITDA increased 19.4 percent during the same period.
Alvaro Rodriguez, Chief Financial Officer, commented: "This was again a very good quarter, with a solid performance in both business units. As a matter of fact, on a comparable basis, the EBITDA obtained this quarter is the highest since 2Q'01, which reflects the positive trend that we've been talking about since 2003."
Mr. Rodriguez continued, "Glass Containers continued to report outstanding results with sales up 11% and EBITDA up 29%. It's important to note that the strength in this business is widespread. It reflects strong demand in both international and domestic operations covering all major market segments and the fact that we continue to open new markets."
"At Flat Glass, trends remain positive, with strong growth in the domestic construction and auto OEM markets, as well as at our foreign subsidiaries. As anticipated, exports declined as we refocus on domestic markets. In fact, on a comparable basis, excluding Quimica M, sales rose 3 percent and EBITDA without inventory reduction effect grew 64 percent for the quarter and 46 percent for the first half of the year. This is a sign of the new trend for the Flat Glass business unit."
"Progress was also made in our cost cutting efforts, and this quarter SG&A fell to 19.1 percent of sales from 20.4 percent in the second quarter of 2005."
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