UNITED STATES OF AMERICA
SECURITITES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 or 15d-16
OF THE SECURITIES AND EXCHANGE ACT OF 1934
For the month of November 2003
QUINENCO S.A.
(Exact name of registrant as specified in charter)
QUINENCO, INC.
(Translation of registrant's name into English)
Quinenco S.A.
Enrique Foster Sur 20, 14th Floor
Santiago, Republic of Chile
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 12(g)3-2(b) under the Securities Act of 1934
Yes |_| No |X|
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12(g)3-2(b): ______________
The following document is being filed with this 6-K report and is attached
hereto.
Press Release dated 14 November 2003 announcing consolidated results for the
third quarter of 2003
[LOGO]
QUINENCO S.A.
www.quinenco.cl
www.quinencogroup.cl Third quarter 2003
================================================================================
FOR IMMEDIATE RELEASE
For further information contact:
Quinenco S.A.
Cindi Freeman-IRO
(56-2) 750-7221
e-mail: cfreeman@lq.cl
QUINENCO S.A. ANNOUNCES CONSOLIDATED
RESULTS FOR THE THIRD QUARTER OF 2003
(Santiago, Chile, November 14, 2003) Quinenco S.A. (NYSE:LQ), a leading Chilean
business conglomerate, announced today its consolidated financial results in
Chilean GAAP, for the third quarter ended September 30, 2003.
Consolidated financial results are presented in accordance with Chilean GAAP.
All figures are presented in constant Chilean pesos and have been adjusted to
reflect the effects of inflation (2.9% year-over-year). Figures in US$ have been
converted from Chilean pesos (Ch$) at the observed exchange rate on September
30, 2003 (Ch$660.97 = US$1.00) and are only provided for the reader's
convenience.
--------------------------------------------------------------------------------
3Q 2003 HIGHLIGHTS
o Quinenco reported net income of Ch$77 million (US$0.1 million) for the
third quarter of 2003, reverting the net loss of Ch$17,830 million
(US$27.0 million) it reported in 3Q 2002. YTD net earnings amount to
Ch$40,481 million (US$61.2 million).
o Consolidated revenues declined by 18.7% to Ch$90,369 million (US$136.7
million) in 3Q 2003. In spite of this reduction, operating profit
increased by 4.1% to Ch$2,777 million (US$4.2 million), primarily
attributable to a marked improvement in Madeco's operating performance.
o Non-operating losses were reduced by Ch$9,333 million (US$14.1 million) to
Ch$17,935 million (US$27.1 million) in 3Q 2003. The improvement was, in
large part, due to a significant increase in earnings related to
Quinenco's interest in Banco de Chile. In addition, results benefited from
foreign exchange gains of Ch$1,575 million (US$2.4 million) vs. losses of
Ch$12,527 million (US$19.0 million) in 3Q 2002. Finally, interest expense
dropped by 24%, also contributing to the reduction in non-operating
losses.
o Earnings per ADR amounted to US$0.57 for the nine-month period ended
September 30, 2003.
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Page 1 of 17
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QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
www.quinenco.cl
www.quinencogroup.cl Third quarter 2003
================================================================================
GROUP HIGHLIGHTS - THIRD QUARTER 2003 AND SUBSEQUENT EVENTS
Quinenco
On October 16, 2003, Quinenco hosted "Quinenco Group Day" at the New York Stock
Exchange. Group companies Banco de Chile, CCU, Madeco and Telefonica del Sur
also participated in the event, which included management presentations and a
speech by Quinenco's Chairman of the Board, Guillermo Luksic.
Lucchetti
On October 16, 2003, pursuant to an extraordinary shareholders' meeting,
shareholders approved a capital increase for Ch$32,875 million. Proceeds from
the capital increase will be used to reduce company indebtedness and finance
Lucchetti's investment program. Lucchetti expects to initiate the capital
increase process prior to year-end.
On November 6, 2003, Lucchetti announced that it had entered into an agreement,
subject to satisfactory due diligence, to purchase Calaf, a local candy and
cookies manufacturer, for an undisclosed amount. Lucchetti plans to distribute
Calaf's products through a strategic alliance with CCU's subsidiary, ECUSA,
using ECUSA's extensive soft drinks and beverages distribution network. As part
of the agreement, ECUSA will be granted an option to purchase 50% of Calaf
within three years following the initiation of the alliance.
Telefonica del Sur
In an extraordinary shareholders' meeting held on October 31, 2003, shareholders
approved a capital increase for Ch$28,615 million, divided among 71,182,836
shares. Although a date has not yet been established for the capital increase,
Telsur expects to carry out the increase during the first part of 2004. Telsur
seeks to improve operating efficiencies and productivity, optimize its capital
structure and finance its investment programs with proceeds from the capital
increase.
CCU
Pursuant to an extraordinary shareholders' meeting held in February 2003, CCU's
shareholders agreed to an extraordinary dividend totaling Ch$168,700 million. As
of October 10, 2003, the full amount had been paid out. Quinenco's proportionate
share of the extraordinary dividend payments was 30.8%.
Madeco
In a public share auction held on the Santiago Stock Exchange on August 20th,
Madeco sold an additional 1,157 million shares of its stock from the
unsubscribed portion previously approved in November of 2002. Proceeds, which
amounted to Ch$32,403 million (approximately US$46.1 million on August 20,
2003), were used to further reduce company indebtedness and provide additional
working capital. Quinenco did not subscribe to any additional shares. As a
result, its interest in Madeco was reduced from 76.8% to 55.2% as of August
20th.
Hoteles Carrera
On August 27, 2003, Hoteles Carrera signed a purchase option and a leasing with
purchase option agreement with the Chilean Ministry of Foreign Relations.
Hoteles Carrera granted the Chilean state an option to purchase the building and
grounds prior to February 29, 2004 for UF832,000. If the option is not
exercised, the agreement states that the parties shall enter into a long-term
leasing agreement with an option to purchase at the end of the term.
Page 2 of 17
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QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
www.quinenco.cl
www.quinencogroup.cl Third quarter 2003
================================================================================
Net Income Contribution
-----------------------------------------------------------------------------------------------------------------------------
Quinenco's
ownership % 3Q 2002 2Q 2003 3Q 2003 3Q 2003 YTD 2002 YTD 2003
Sector/Company at 9/30/2003 MCh$ MCh$ MCh$ MUS$ MCh$ MCh$
-----------------------------------------------------------------------------------------------------------------------------
Financial Services:
Banco de Chile (1) 52.2% 5,023 10,237 10,618 16.1 13,261 30,020
-----------------------------------------------------------------------------------------------------------------------------
Food & Beverage:
CCU (1) 30.8% 794 (301) 1,278 1.9 3,353 11,109
Lucchetti (1) 93.7% (2,071) (156) 91 0.1 (3,813) (723)
-----------------------------------------------------------------------------------------------------------------------------
Telecommunications:
Telsur (1) 73.6% 614 1,167 1,413 2.1 3,211 3,864
Entel (2) 5.7% 175 601 810 1.2 1,308 2,528
-----------------------------------------------------------------------------------------------------------------------------
Manufacturing:
Madeco (1) 55.2% (10,325) 16 (249) (0.4) (20,291) (4,534)
-----------------------------------------------------------------------------------------------------------------------------
Real estate/hotel admin.:
Carrera (1) 89.9% (285) (355) (3,411) (5.1) (1,041) (3,839)
Habitaria (1) 50.0% 152 (35) 136 0.2 196 (111)
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Total operating companies (5,923) 11,174 10,686 16.1 (3,816) 38,314
-----------------------------------------------------------------------------------------------------------------------------
Quinenco & holding companies (11,907) (11,042) (10,609) (16.0) (32,676) 2,167
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Total (17,830) 132 77 0.1 (36,492) 40,481
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The figures provided in the above table correspond to Quinenco's proportional
share of each company's net income (loss).
(1) Operating company in which Quinenco has direct or indirect control.
(2) Operating company in which Quinenco holds a minority interest.
Net Income - 3Q 2003
Quinenco reported a net profit for the third quarter of 2003 of
Ch$77 million (US$0.1 million), compared to a net loss of Ch$17,830
million (US$27.0 million) in the third quarter of 2002. The
improvement in the quarterly earnings performance was primarily
attributable to a sharp increase of Ch$16,609 million (US$25.1
million) in the net income contribution from Quinenco's main
operating companies, particularly Banco de Chile and Madeco.
Earnings per ordinary share amounted to Ch$0.07 and earnings per
ADR, Ch$0.7 (US$0.0).
Page 3 of 17
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QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
www.quinenco.cl
www.quinencogroup.cl Third quarter 2003
================================================================================
Consolidated Income Statement Breakdown
----------------------------------------------------------------------------------------------------
3Q 2002 2Q 2003 3Q 2003 3Q 2003 YTD 2002 YTD 2003
MCh$ MCh$ MCh$ MUS$ MCh$ MCh$
----------------------------------------------------------------------------------------------------
Revenues
----------------------------------------------------------------------------------------------------
Madeco 71,665 62,044 59,984 90.8 204,571 184,507
Lucchetti 23,923 15,806 15,346 23.2 66,812 45,652
Telsur 12,601 12,830 12,911 19.5 36,444 38,470
Carrera 1,481 1,412 1,483 2.2 5,001 4,566
Quinenco & holding 1,461 599 645 1.0 1,847 1,679
----------------------------------------------------------------------------------------------------
Total 111,131 92,691 90,369 136.7 314,675 274,874
----------------------------------------------------------------------------------------------------
Operating income (loss)
----------------------------------------------------------------------------------------------------
Madeco 976 3,388 1,735 2.6 5,020 7,303
Lucchetti 779 994 801 1.2 3,194 2,094
Telsur 3,547 3,009 3,086 4.7 9,762 9,155
Carrera (234) (282) (216) (0.3) (643) (498)
Quinenco & holding (2,401) (2,083) (2,629) (4.0) (6,811) (6,926)
----------------------------------------------------------------------------------------------------
Total 2,667 5,026 2,777 4.2 10,522 11,128
----------------------------------------------------------------------------------------------------
Non-operating income (loss)
----------------------------------------------------------------------------------------------------
Interest income 1,848 841 731 1.1 5,617 2,333
Share of net income/loss
from related co:
Banco de Chile 5,023 10,237 10,618 16.1 13,261 30,020
CCU 794 (301) 1,278 1.9 3,353 11,109
Habitaria 152 (35) 136 0.2 196 (111)
Entel 175 601 810 1.2 1,308 2,528
Other equity inv 194 (236) 70 0.1 (4) (443)
Other non-op income 626 548 643 1.0 4,973 37,644
Amort. of GW expense (5,306) (5,119) (5,058) (7.6) (15,811) (15,378)
Interest expense (12,804) (9,103) (9,737) (14.7) (41,323) (29,167)
Other non-op expenses (6,770 (7,479) (20,279) (30.7) (14,737) (32,341)
Price-level restatement (11,201 (35) 2,853 4.3 (21,247) 2,669
----------------------------------------------------------------------------------------------------
Total (27,269) 10,081 (17,935) (27.1) (64,414) 8,863
----------------------------------------------------------------------------------------------------
Income Tax (1,675) (737) (968) (1.5) (899) (2,572)
Extraordinary items -- -- -- -- -- --
Minority Interest 8,219 (455) 122 0.2 17,620 26
Amort. of neg. GW 228 6,379 16,081 24.3 679 23,036
----------------------------------------------------------------------------------------------------
Net income (loss) (17,830) 132 77 0.1 (36,492) 40,481
----------------------------------------------------------------------------------------------------
Revenues - 3Q 2003
Consolidated revenues for the third quarter of 2003 were Ch$90,369
million US$136.7 million), 18.7% lower than the Ch$111,131 million
(US$168.1 million) registered in the third quarter of 2002, mainly
due to a decrease of 16.3% in Madeco's sales level and a 35.9%
decrease in Lucchetti's sales. Consolidated sales can be broken down
as follows: Madeco (66.4%), Lucchetti (17.0%), Telsur (14.3%),
Carrera (1.6%) and others (0.7%).
Page 4 of 17
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QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
www.quinenco.cl
www.quinencogroup.cl Third quarter 2003
================================================================================
Operating Income - 3Q 2003
Operating income for the third quarter of 2003 was Ch$2,777 million
(US$4.2 million), up by 4.1% from the Ch$2,667 million (US$4.0
million) reported in the third quarter of 2002. Consolidated
operating income increased as a result of higher operating profit
attributable to Madeco's operations, partially offset by a decrease
in Telsur's operating results.
EBITDA - 3Q 2003
EBITDA reached Ch$9,971 million (US$15.1 million) in 3Q 2003,
compared to Ch$10,697 million (US$16.2 million) in 3Q 2002, a
decrease of 6.8%.
Non-Operating Results -3Q 2003
Quinenco reported a non-operating loss of Ch$17,935 million (US$27.1
million) in the third quarter of 2003, compared to a non-operating
loss of Ch$27,269 million (US$41.3 million) in the same quarter of
2002. The main items included in non-operating results are discussed
below:
o Proportionate share of net income of equity method investments (net)
Quinenco's proportionate share of net income from equity method
investments (net), which includes the results from Banco de Chile
and CCU, two of Quinenco's most significant investments, reached
Ch$12,912 million (US$19.5 million), compared to Ch$6,338 million
(US$9.6 million) in 3Q 2002, an increase of 103.7%. The increase
mainly corresponded to increases in the proportionate share of net
income from Banco de Chile, and to a lesser extent, CCU and Entel.
Banco de Chile's net profit in 3Q 2003 reached Ch$36,520 million
(US$55.3 million) of which Quinenco's share was 29.2%.
o Other non-operating income
Other non-operating income was Ch$643 million (US$1.0 million),
almost unchanged from the Ch$626 million (US$0.9 million) reported
in the third quarter of 2002.
o Amortization of goodwill expense
Amortization of goodwill expense amounted to Ch$5,058 million
(US$7.7 million) in the third quarter of 2003, down by 4.7% from the
Ch$5,305 million (US$8.0 million) reported in the same period in
2002. The variation in amortization of goodwill expense for the
third quarter is associated with Madeco's operations.
Goodwill expense at the consolidated level is almost entirely
related to the Banco de Chile acquisition in 2001, and to a lesser
extent, the Banco Edwards acquisition in 1999 (now kept on the books
as Bank of Chile). Of the total balance of goodwill at the
consolidated level of Ch$335,787 million (US$508.0 million) as of
September 30, 2003, Ch$302,411 million (US$457.5 million) was
associated with the Banco de Chile acquisition. Goodwill is
amortized using the straight-line method over twenty years.
o Interest Expense
Interest expense for the third quarter of 2003 amounted to Ch$9,737
million (US$14.7 million), a decrease of 24.0% compared to the same
period in 2002. The decrease is primarily associated with a lighter
consolidated debt load at Madeco (-38.6% compared to 3Q 2002) and at
the Quinenco corporate level (-7.9% compared to 3Q 2002), the
non-consolidation of Lucchetti's Peruvian operations, lower
refinancing costs and lower prevailing interest rates.
Page 5 of 17
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QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
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www.quinencogroup.cl Third quarter 2003
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o Other non-operating expenses and negative goodwill
Other non-operating expenses amounted to Ch$20,279 million (US$30.7
million), compared to Ch$6,770 million (US$10.2 million) reported in
the same quarter in 2002. The main item comprising other
non-operating expenses was the loss associated with the
non-subscription of additional shares of Madeco in August (Ch$15,315
million, US$23.2 million). Worth mentioning is that the effect of
the non-subscription was totally offset by a credit to income for
the same amount for extraordinary amortization of negative goodwill
associated with Quinenco's interest in Madeco's capital increase.
The credit to income is included with negative goodwill, which
totaled Ch$16,081 million, (US$24.3 million) in 3Q 2003).
Also included with other non-operating expenses in 3Q 2003 was a
loss provision of Ch$3,493 million (US$5.3 million) made in
connection with the pending sale of the Santiago Hotel Carrera to
the Chilean Ministry of Foreign Relations.
o Price-level restatement and foreign currency translation gains
(losses) net
Price-level restatement and foreign currency translation gains (net)
were Ch$2,853 million (US$4.3 million) in the third quarter of 2003,
compared to net losses of Ch$11,201 million (US$16.9 million) in the
same period in 2002.
Price-level restatement gains amounted to Ch$1,278 million (US$1.9
million) in 3Q 2003 compared to price-level restatement gains of
Ch$1,326 million (US$2.0 million) reported in the same quarter in
2002.
Foreign currency translation gains amounted to Ch$1,575 million
(US$2.4 million) in 3Q 2003, compared to foreign currency
translation losses of Ch$12,527 million (US$19.0 million) in the
same period in 2002. In both quarters, the results from foreign
currency translations mostly corresponded to Madeco's operations. In
3Q 2003, Madeco's foreign currency translation gains of Ch$1,388
million (US$2.1 million) corresponded to the revaluation of the
Chilean peso vis-a-vis the US dollar, partially offset by losses
from currency hedges of the Brazilian real. In 3Q 2002, Madeco's
foreign currency translation losses of Ch$10,689 million (US$16.2
million) were associated with the devaluation of the Brazilian real
and Argentine peso vis-a-vis the US dollar.
Income Taxes - 3Q 2003
Quinenco reported income taxes of Ch$967 million (US$1.5 million),
compared to income taxes of Ch$1,675 million (US$2.5 million) during
the same period of 2002.
Minority Interest - 3Q 2003
In the third quarter of 2003, Quinenco added back to income Ch$122
million (US$0.2 million) related to minority shareholders' interests
for the period. Worth noting is that in 3Q 2002, the add-back to
income amounted to Ch$8,219 million (US$12.4 million) and was almost
entirely related to minority shareholder interest in Madeco's losses
for that period.
Page 6 of 17
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QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
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--------------------------------------------------------------------------------------------
Condensed Consolidated Balance Sheet
--------------------------------------------------------------------------------------------
As of As of As of As of
9/30/02 6/30/03 9/30/03 9/30/03
MCh$ MCh$ MCh$ MUS$
--------------------------------------------------------------------------------------------
Current assets 297,406 263,890 288,476 436.4
Fixed assets 448,353 378,659 367,369 555.8
Other assets 885,873 835,447 820,734 1,241.7
--------------------------------------------------------------------------------------------
Total assets 1,631,632 1,477,996 1,476,579 2,233.9
--------------------------------------------------------------------------------------------
Current liabilities 316,189 232,332 207,644 314.1
Long-term liabilities 540,810 505,293 494,492 748.1
Minority interest 87,281 68,875 110,507 167.2
Shareholders' equity 687,352 671,496 663,936 1,004.5
--------------------------------------------------------------------------------------------
Total liabilities & shareholders' equity 1,631,632 1,477,996 1,476,579 2,233.9
--------------------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET ANALYSIS (vis-a-vis the 2nd quarter of 2003)
Current Assets
Current assets increased 9.3% compared to the second quarter of
2003, mainly due to higher cash levels maintained at Madeco
following its capital increase in August.
Fixed Assets and Other Assets
Fixed assets decreased 3.0% compared to the second quarter of 2003,
mostly due to adjustments to fixed assets to reflect the lower
values of properties in Argentina (Madeco). Other assets did not
vary significantly compared to the second quarter of 2003.
Current Liabilities
Current liabilities decreased 10.6% compared to the second quarter
of 2003, mostly reflecting debt pay down at the Quinenco corporate
level, and to a lesser extent, at Madeco.
Long-term Liabilities
Long-term liabilities did not vary significantly compared to the
second quarter of 2003.
Minority Interest
Minority interest increased by 60.4% compared to the second quarter
of 2003, mainly attributable to the minority interest corresponding
to Madeco following its capital increase in August.
Equity
Shareholders' equity decreased by 1.1% compared to the second
quarter of 2003.
Page 7 of 17
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QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
www.quinenco.cl
www.quinencogroup.cl Third quarter 2003
================================================================================
Quinenco Corporate Level
As of September 30, 2003, financial debt at the corporate level was Ch$350,183
million (US$529.8 million). As of the same date, cash and cash equivalents
amounted to approximately Ch$59,891 million (US$90.6 million). The debt to total
capitalization ratio at the corporate level was 34.5%.
RETURN ON CAPITAL EMPLOYED (ROCE)
With the aim of focusing on creating value for Quinenco's shareholders as well
as an indicative measurement of operating company results, the following table
indicates the return on capital employed (ROCE) at each of Quinenco's main
operating companies (excluding Banco de Chile):
--------------------------------------------------------------------------------
ROCE (1)
For the 12 months ended 9/30/03
--------------------------------------------------------------------------------
Madeco 2.4%
Telsur 8.9%
Lucchetti 3.8%
Carrera (0.4)%
CCU 7.7%
Habitaria 4.3%
--------------------------------------------------------------------------------
(1) Adjusted operating return over capital employed for the last 12 months.
Page 8 of 17
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QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
www.quinenco.cl
www.quinencogroup.cl Third quarter 2003
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SECTOR/OPERATING COMPANY ANALYSIS
FINANCIAL SERVICES SECTOR
The following table details Quinenco's proportional share of income from
investments in the Financial Services sector during 2002 and 2003:
--------------------------------------------------------------------------------------------------
FINANCIAL SERVICES
--------------------------------------------------------------------------------------------------
Ownership 3Q 2002 YTD 2002 2Q 2003 3Q 2003 3Q 2003 YTD 2003
% MCh$ MCh$ MCh$ MCh$ MUS$ MCh$
--------------------------------------------------------------------------------------------------
Banco de Chile (1) 52.2% 5,023 13,261 10,237 10,618 16.1 30,020
--------------------------------------------------------------------------------------------------
1) Ownership % corresponds to voting rights. Quinenco's proportionate share
of Banco de Chile's income is calculated according to economic ownership
percentages in Banco de Chile (20.2%) and SM Chile (51.4%).
BANCO DE CHILE
-----------------------------------------------------------------------------------------------------------------------
Banco de Chile Quarter Accumulated for Year
-----------------------------------------------------------------------------------------------------------------------
3Q 2002 3Q 2003 3Q 2003 YTD 2002 YTD 2003 YTD 2003
MCh$ MCh$ MUS$ MCh$ MCh$ MUS$
-----------------------------------------------------------------------------------------------------------------------
Operating revenues 94,292 104,267 157.7 309,136 319,648 483.6
Provisions (5,154) (13,056) (19.8) (74,136) (43,297) (65.5)
Operating expenses (64,404) (54,947) (83.1) (179,933) (165,200) (250.0)
Net Income (loss) 17,459 36,520 55.3 45,161 103,011 155.8
-----------------------------------------------------------------------------------------------------------------------
Loan portfolio 6,397,245 6,149,376 9,303.6
Total assets 9,505,596 8,932,164 13,513.7
Shareholders' equity 615,449 671,052 1,051.3
-----------------------------------------------------------------------------------------------------------------------
Net interest margin 5.1% 2.5%
Net Financial Margin 3.9% 3.7%
Efficiency ratio 68.3% 52.7%
ROAE 11.8% 21.9%
ROAA 0.7% 1.6%
-----------------------------------------------------
3Q 2003 Results
Operating revenues increased by 10.6% to Ch$104,267 million (US$157.7 million)
in the third quarter of 2003 as a result of an improvement in results from sales
of financial instruments and higher fee income, the effects of which were
partially offset by a reduction in net financial income.
Gains on sales of financial instruments reached Ch$193 million (US$0.3 million),
compared to losses of Ch$15,171 million (US$23.0 million) in 3Q 2002 when Banco
de Chile recognized marked-to-market losses coming from Argentine securities in
the wake of the economic crisis in that country. An increase in fee income also
served to boost operating revenues in 3Q 2003, growing by 10.7% to Ch$27,117
million (US$41.0 million) in connection with traditional bank services and
subsidiary activity, especially stock brokerage and fund management services.
Page 9 of 17
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QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
www.quinenco.cl
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Net financial income, which is calculated as the sum of net interest revenue and
foreign exchange transactions (net), comprised 73.8% of operating revenues in 3Q
2003. It decreased by 9.4% to Ch$76,957 million (US$116.4 million ) due to a
drop in average interest earning assets of 3.7% and a decline of 23 basis points
in the net financial margin.
Provisions for loan losses, which amounted to Ch$13,056 million (US$19.8
million), showed a significant decrease from the Ch$19,064 million (US$28.8
million) reported in the third quarter of 2002, reflecting a more positive
economic scenario as well as the revaluation of the Chilean peso vis-a-vis the
US dollar. Provisions for loan losses, which were particularly high in the third
quarter of 2002, corresponded to the establishment of a cohesive and strict
credit policy on loans as part of the overall merger process as well as
marked-to-market losses on Argentine securities. In 3Q 2002, Banco de Chile
released Ch$13,900 million (US$21.0 million) in voluntary provisions, bringing
net provisions down to Ch$5,154 million (US$7.8 million) in that period.
Operating expenses fell by 14.7% to Ch$54,947 million (US$83.1 million) compared
to the third quarter of 2002 when operating expenses included costs relative to
the merger process, most importantly, severance payments, write-offs of obsolete
software and branch closing costs.
Net income for 3Q 2003 was Ch$36,520 million (US$55.3 million), an increase of
109.2% from the Ch$17,459 million (US$26.4 million) reported in the third
quarter of 2002. The increase in net quarterly earnings was attributable to a
14.7% decline in operating expenses as a result of the merger, a 10.6% increase
in operating revenues, driven by a growth in fee income and sales of financial
instruments, and a 31.5% decrease in provisions for loan losses.
As of September 2003, the Bank's loan portfolio had decreased by 3.9% to
Ch$6,149,376 million (US$9,303.6 million) compared to the previous twelve-month
period. The decline in the loan portfolio has been most pronounced in foreign
trade, mortgage and the commercial loan segments.
Banco de Chile was the second ranked private bank in the country with a market
share of 18.0% according to information published by the Chilean Superintendency
of Banks for the period ended September 30, 2003. Its return on capital and
reserves (annualized for the twelve-month period) reached 24.2%, amply
surpassing the 16.4% return for the local financial system, according to the
same source.
Page 10 of 17
================================================================================
QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
www.quinenco.cl
www.quinencogroup.cl Third quarter 2003
================================================================================
FOOD & BEVERAGE SECTOR
The following table details Quinenco's proportional share of income (loss) from
investments in the Food & Beverage sector during 2002 and 2003:
--------------------------------------------------------------------------------------------------
FOOD & BEVERAGE
--------------------------------------------------------------------------------------------------
Ownership 3Q 2002 YTD 2002 2Q 2003 3Q 2003 3Q 2003 YTD 2003
% MCh$ MCh$ MCh$ MCh$ MUS$ MCh$
--------------------------------------------------------------------------------------------------
CCU 30.8% 794 3,353 (301) 1,278 1.9 11,109
Lucchetti 93.7% (2,071) (3,813) (156) 91 0.1 (723)
--------------------------------------------------------------------------------------------------
CCU
-----------------------------------------------------------------------------------------------------------
CCU Quarter Accumulated for Year
-----------------------------------------------------------------------------------------------------------
3Q 2002 3Q 2003 3Q 2003 YTD 2002 YTD 2003 YTD 2003
MCh$ MCh$ MUS$ MCh$ MCh$ MUS$
-----------------------------------------------------------------------------------------------------------
Sales 79,671 88,812 134.4 246,046 266,859 403.7
Operating income (loss) 5,377 7,615 11.5 23,555 23,989 36.3
Net Income (loss) 2,578 4,150 6.3 10,890 36,079 54.6
-----------------------------------------------------------------------------------------------------------
Total Assets 666,985 592,563 896.5
Shareholders' equity 440,082 278,529 421.4
-----------------------------------------------------------------------------------------------------------
3Q 2003 Results
CCU's third quarter consolidated sales grew by 11.5% compared to the third
quarter of 2002 due to an increase of 10.4% in consolidated sales volumes,
partially offset by a reduction in average prices of 0.6%. The growth in sales
volume was led by the beer segments, both in Chile and Argentina (9.2% and 19.4%
respectively), soft drinks (4.4%) export wines (7.3%) and domestic wines (0.9%).
In addition, Finca La Celia, Vina San Pedro's subsidiary in Argentina, began to
consolidate its operations with San Pedro in January of this year, which also
served to increase the volume sold. In spite of the overall increase in the
volume sold, lower prices partially offset the gain in quarterly revenues. The
decline in consolidated average prices of 0.6% was the result of lower wines
prices (-10.1%), attributable to the export wine segment and Finca La Celia,
whose exports primarily consist of bulk wine and the soft drinks segment
(-2.1%), partially offset by higher average beer prices in Chile and Argentina
(5.9% and 1.3%%, respectively).
Operating income rose by 41.6% in the third quarter to Ch$7,615 million (US$11.5
million), mainly as a result of the higher sales level, which translated
directly into an increase of 9.1% in CCU's gross profit and a decrease in SG&A
expenses as a percentage of sales. In absolute terms, SG&A expenses increased by
3.9% to Ch$34,575 (US$52.3 million) as a result of higher marketing expenses
incurred in the soft drinks segment and the newly launched pisco segment. As a
percentage of sales, however, SG&A expenses decreased 2.9% to 38.9% of total
sales. The increase in gross profit and reduction in SG&A as a percentage of
total sales led to an improvement in the consolidated operating margin, which
rose from 6.7% in 3Q 2002 to 8.6% in 3Q 2003.
Page 11 of 17
================================================================================
QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
www.quinenco.cl
www.quinencogroup.cl Third quarter 2003
================================================================================
Non-operating losses increased from Ch$1,388 million (US$2.1 million) in 3Q 2002
to Ch$1,952 million (US$3.0 million) in 3Q 2003. The increase in non-operating
losses in the third quarter of the year was mostly attributable to the absence
of results from the Croatian affiliate, Karlovacka, which was sold at the end of
March, lower price-level restatement gains and an increase in severance
payments, the effects of which were partially offset by lower foreign exchange
rate losses and financial income earned on cash balances.
CCU reported net income in 3Q 2003 of Ch$4,150 million (US$6.3 million), an
increase of 61% compared to the same period in 2002. The hike in quarterly
profits was primarily due to the aforementioned increase in operating income
reported during the period, partially offset by higher non-operating losses and
income taxes.
LUCCHETTI
------------------------------------------------------------------------------------------------------------
Lucchetti Quarter Accumulated for Year
3Q 2002 3Q 2003 3Q 2003 YTD 2002 YTD 2003 YTD 2003
MCh$ MCh$ MUS$ MCh$ MCh$ MUS$
------------------------------------------------------------------------------------------------------------
Sales 23,922 15,346 23.2 66,812 45,652 69.1
Operating income (loss) 779 801 1.2 3,194 2,094 3.2
Net Income (loss) (2,210) 97 0.1 (4,069) (772) (1.2)
------------------------------------------------------------------------------------------------------------
Total Assets 127,254 72,023 109.0
Shareholders' equity 52,032 15,592 23.6
------------------------------------------------------------------------------------------------------------
3Q 2003 Results
Lucchetti reported sales of Ch$15,346 million (US$23.2 million) in the third
quarter of 2003, down 35.8% compared to the same period in 2002. The decrease in
sales is attributable to the closure of the Peruvian operations in early January
2003 (Ch$5,541 million, US$8.4 million), and to a lesser extent, a reduction in
Lucchetti's sales in Chile (Ch$3,035 million, US$4.6 million). Lucchetti's
operations in Chile were affected by a pronounced drop of Ch$3,483 million
(US$5.3 million) in the sales of edible oils due to a flood of low priced
imports from Argentina. The reduction in edible oil sales was partially offset
by a 2.9% increase in the sale of pastas (Ch$9,019 million, US$13.6 million),
and a 14.5% increase in soups, broths and creams (Ch$1,505 million, US$2.3
million). Sales for 3Q 2003 can be broken down as follows: pasta (58.8%), edible
oils (31.4%), soups, broths and creams (9.8%).
Operating profit, which amounted to Ch$801 million (US$1.2 million), equivalent
to 5.2% of sales, remained almost unchanged from the Ch$779 million (US$1.2
million) reported in the third quarter of 2002. Operating losses from Peru
(Ch$353 million, US$0.5 million) were eliminated due to the plant closure,
however Lucchetti Chile's operating profit declined by Ch$2,016 million (US$3.1
million) as a result of the aforementioned downturn in the edible oils business.
Non-operating losses amounted to Ch$881 million (US$1.3 million), a significant
reduction from the Ch$3,102 million (US$4.7 million) reported in 3Q 2002. The
decrease in non-operating losses was attributable to a decline in interest
expense from Ch$1,149 million (US$1.7 million) in 3Q 2002 to Ch$736 million
(US$1.1 million) in 3Q 2003 owing to the non-consolidation of Lucchetti Peru and
low prevailing interest rates. In addition, Lucchetti reported a reduction in
non-operating expenses of Ch$1,060 million (US$1.6 million), mostly in relation
to expenses incurred in the defense of its Peruvian plant during 2002.
Page 12 of 17
================================================================================
QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
www.quinenco.cl
www.quinencogroup.cl Third quarter 2003
================================================================================
Finally, exchange rate losses of Ch$1,413 million (US$2.1 million) were reverted
and Lucchetti reported exchange rate gains of Ch$102 million (US$0.2 million) in
3Q 2003, also contributing to an improvement in non-operating results for the
period.
Lucchetti reported net income of Ch$97 million (US$0.1 million) compared to a
net loss of Ch$2,210 million (US$3.3 million) in the same period of 2002. The
improvement in Lucchetti's quarterly net earnings was attributable to the
aforementioned reduction in non-operating losses during the period.
TELECOMMUNICATIONS SECTOR
The following table details Quinenco's proportional share of income from
investments in the Telecommunications sector during 2002 and 2003:
--------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS
--------------------------------------------------------------------------------------------------
Ownership 3Q 2002 YTD 2002 2Q 2003 3Q 2003 3Q 2003 YTD 2003
% MCh$ MCh$ MCh$ MCh$ MUS$ MCh$
--------------------------------------------------------------------------------------------------
Telsur 73.6% 614 3,211 1,167 1,413 2.1 3,864
Entel (1) 5.7% 175 1,308 601 810 1.2 2,528
--------------------------------------------------------------------------------------------------
(1) Non-controlling interest.
TELSUR
-----------------------------------------------------------------------------------------------------------
Telsur Quarter Accumulated for Year
-----------------------------------------------------------------------------------------------------------
3Q 2002 3Q 2003 3Q 2003 YTD 2002 YTD 2003 YTD 2003
MCh$ MCh$ MUS$ MCh$ MCh$ MUS$
-----------------------------------------------------------------------------------------------------------
Sales 12,601 12,911 19.5 36,444 38,470 58.2
Operating income (loss) 3,547 3,086 4.7 9,762 9,156 13.9
Net Income (loss) 836 1,918 2.9 4,365 5,250 7.9
-----------------------------------------------------------------------------------------------------------
Total Assets 137,298 134,093 202.9
Shareholders' equity 56,835 60,122 91.0
-----------------------------------------------------------------------------------------------------------
3Q 2003 Results
Telsur's sales increased by 2.5% to Ch$12,911 million (US$19.5 million) in the
third quarter of 2003, mainly due to the consolidation of internet, security and
other services. This increase more than offset the decline in basic telephony
service revenues associated with the substitution of fixed telephony for mobile
telephony alternatives as well as a drop in revenues from long distance
services. Also worth mentioning is that in 3Q 2002, Telsur's sales included the
sale of its rights to publish yellow pages for Ch$634 million (US$1.0 million).
In spite of the increase in sales, Telsur's operating profit fell by 13.0% to
Ch$3,086 million (US$4.7 million) in the third quarter of 2003, mainly as a
result of a drop in the gross margin associated with basic telephony services.
In addition, the higher depreciation expense associated with the Internet,
security and call center services also served to reduce quarterly operating
profit.
Page 13 of 17
================================================================================
QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
www.quinenco.cl
www.quinencogroup.cl Third quarter 2003
================================================================================
Telsur's non-operating losses decreased by 30.3% to Ch$636 million (US$1.0
million) in 3Q 2003. The reduction in non-operating losses was mainly related to
higher results from equity investments, an increase in other non-operating
income and price-level restatement gains, the effects of which were partially
offset by a decrease in interest income earned during the period.
Worth mentioning is that in the third quarter of 2002, Telsur made extraordinary
charges to income of Ch$1,437 million (US$2.2 million) in connection with a
company reorganization aimed towards development of greater operating
efficiencies.
Telsur reported net income of Ch$1,918 million (US$2.9 million), up by 129.5%
compared to the same period in 2002, mainly due to the absence of the
aforementioned extraordinary charges to income, which more than offset the drop
in quarterly operating profits.
MANUFACTURING SECTOR
The following table details Quinenco's proportional share of income (loss) from
investments in the Manufacturing sector during 2002 and 2003:
----------------------------------------------------------------------------------------
MANUFACTURING
----------------------------------------------------------------------------------------
Ownership 3Q 2002 YTD 2002 2Q 2003 3Q 2003 3Q 2003 YTD 2003
% MCh$ MCh$ MCh$ MCh$ MUS$ MCh$
----------------------------------------------------------------------------------------
Madeco 55.2% (10,325) (20,291) 16 (249) (0.4) (4,534)
----------------------------------------------------------------------------------------
MADECO
---------------------------------------------------------------------------------------------------------
Madeco Quarter Accumulated for Year
---------------------------------------------------------------------------------------------------------
3Q 2002 3Q 2003 3Q 2003 YTD 2002 YTD 2003 YTD 2003
MCh$ MCh$ MUS$ MCh$ MCh$ MUS$
---------------------------------------------------------------------------------------------------------
Sales 71,665 59,984 90.8 204,571 184,507 279.1
Operating income (loss) 976 1,735 2.6 5,020 7,303 11.0
Net Income (loss) (18,587) (454) (0.7) (36,346) (5,539) (8.4)
---------------------------------------------------------------------------------------------------------
Total assets 414,330 401,181 607.0
Shareholders' equity 115,852 174,204 263.6
---------------------------------------------------------------------------------------------------------
3Q 2003 Results
Madeco's sales level in the third quarter of 2003 fell by 16.3% from Ch$71,665
million (US$108.4 million) to Ch$59,984 million (US$90.8 million). In general
terms, Madeco's consolidated revenues, 44% of which were earned in foreign
subsidiaries, were affected by the 11.7% revaluation of the Chilean peso against
the US dollar year-over-year. Volume sales in equivalent tons were relatively
stable when compared on a quarterly basis, decreasing slightly by 2.9%.
Sales of the wire and cable business declined by Ch$8,918 million (US$13.5
million) or 23.4% compared to the third quarter of 2002. This reduction
accounted for approximately 76% of the total decline in consolidated sales for
the period. Sales of the W&C unit were affected by the revaluation of the
Chilean peso; in US dollar terms, W&C sales increased from US$28.7 million in 3Q
2002 to US$33.6 million in 3Q 2003.
Page 14 of 17
================================================================================
QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
www.quinenco.cl
www.quinencogroup.cl Third quarter 2003
================================================================================
While volume sales of the wire and cable business unit in Brazil, Madeco's
largest wire & cable unit (47.8% of W&C revenues), continued to be hampered by
low demand by the telecom and energy sectors in the third quarter of the year,
other units in Chile, Argentina and Peru experienced a pickup in sales volumes
of over 34% in the third quarter.
Sales of the wire and cable business unit (whose principal operation is Ficap
Brazil) accounted for 48.7% of total sales, followed by brass mills (22.6%),
flexible packaging (18.0%) and aluminum profiles (10.7%).
In spite of the decline in quarterly sales, operating income jumped by 77.7% to
Ch$1,735 million (US$2.6 million), mainly as the result of 28.9% lower SG&A
expenses in Madeco's four business units. Worth noting is that although the wire
and cable business unit reported an operating loss of Ch$531 million (US$0.8
million), operating income from Madeco's other three business units rose by
42.3% during the quarter to Ch$2,267 million (US$3.4 million).
As a percentage of sales, the operating margin improved from 1.4% in 3Q 2002 to
2.9% in 3Q 2003.
Non-operating losses were cut by over 90% from Ch$18,632 million (US$28.2
million) in 3Q 2002 to Ch$1,843 million (US$2.8 million) in 3Q 2003. The
decrease in non-operating losses was mainly attributable to an improvement in
foreign currency translation results, which reverted 2Q 2002's loss of Ch$10,689
million (US$16.2 million) to a gain of Ch$1,388 million (US$2.1million) mainly
as a consequence of the revaluation of the Chilean peso vis-a-vis the US dollar.
In addition, Madeco reported a sharp reduction in interest expense of 38.6% to
Ch$3,494 million (US$5.3 million), which resulted from a reduction in bank debt
using proceeds received in the capital increase as well as low prevailing
interest rates. In addition, other non-operating expenses fell by more than 71%
to Ch$752 million (US$1.1 million).
The net loss for the third quarter of 2003 was Ch$454 million (US$0.7 million),
a marked improvement from the net loss of Ch$18,587 million (US$28.1 million)
reported in 3Q 2002, mainly as a consequence of the aforementioned improvements
at both the operating and non-operating levels.
Page 15 of 17
================================================================================
QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
www.quinenco.cl
www.quinencogroup.cl Third quarter 2003
================================================================================
REAL ESTATE/HOTEL ADMINISTRATION
The following table details Quinenco's proportional share of income from
investments in the Real Estate/Hotel Administration sector during 2002 and 2003:
---------------------------------------------------------------------------------------------------
REAL ESTATE/HOTEL ADMINISTRATION
---------------------------------------------------------------------------------------------------
Ownership 3Q 2002 YTD 2002 2Q 2003 3Q 2003 3Q 2003 YTD 2003
% MCh$ MCh$ MCh$ MCh$ MUS$ MCh$
---------------------------------------------------------------------------------------------------
Hoteles Carrera 89.9% (285) (1,041) (355) (3,411) (5.2) (3,839)
Habitaria 50.0% 152 196 (35) 136 0.2 (111)
---------------------------------------------------------------------------------------------------
HOTELES CARRERA
------------------------------------------------------------------------------------------------------------
Hoteles Carrera Quarter Accumulated for Year
------------------------------------------------------------------------------------------------------------
3Q 2002 3Q 2003 3Q 2003 YTD 2002 YTD 2003 YTD 2003
MCh$ MCh$ MUS$ MCh$ MCh$ MUS$
------------------------------------------------------------------------------------------------------------
Sales 1,481 1,483 2.2 5,001 4,566 6.9
Operating income (loss) (234) (216) (0.3) (643) (498) (0.8)
Net Income (loss) (317) (3,792) (5.7) (1,159) (4,268) (6.5)
------------------------------------------------------------------------------------------------------------
Total assets 23,341 22,722 34.4
Shareholders' equity 14,545 10,428 15.8
------------------------------------------------------------------------------------------------------------
3Q 2003 Results
Hoteles Carrera reported sales revenues of Ch$1,483 million (US$2.2 million) in
the third quarter of 2003, almost unchanged from the Ch$1,481 million (US$2.2
million) reported in the third quarter of 2002. 56.1% of total revenues
corresponded to the Santiago flagship hotel, which is currently under contract
for sale to the Chilean government. Under the terms of the contract, the
transfer of ownership will be concluded before March 31, 2004.
Hoteles Carrera reported non-operating losses of Ch$3,575 million (US$5.4
million) in 3Q 2003, which included a loss provision of Ch$3,493 million (US$5.3
million) in connection with the sale of the Santiago hotel. The non-recurring
loss on sale contributed heavily to the net loss of Ch$3,792 million (US$5.7
million) for the third quarter of 2003.
Page 16 of 17
================================================================================
QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
[LOGO]
QUINENCO S.A.
www.quinenco.cl
www.quinencogroup.cl Third quarter 2003
================================================================================
HABITARIA
------------------------------------------------------------------------------------------------------------
Habitaria Quarter Accumulated for Year
------------------------------------------------------------------------------------------------------------
3Q 2002 3Q 2003 3Q 2003 YTD 2002 YTD 2003 YTD 2003
MCh$ MCh$ MUS$ MCh$ MCh$ MUS$
------------------------------------------------------------------------------------------------------------
Sales 5,630 7,764 11.7 15,319 14,417 21.8
Operating income (loss) 401 502 0.8 809 274 0.4
Net Income (loss) 294 273 0.4 392 (222) (0.3)
------------------------------------------------------------------------------------------------------------
Total assets 47,659 39,757 60.1
Shareholders' equity 17,099 17,378 26.3
------------------------------------------------------------------------------------------------------------
3Q 2003 Results
Habitaria reported consolidated sales of Ch$7,764 million (US$11.7 million) in
the third quarter of 2003, an increase of 37.9% from the Ch$5,630 million
(US$8.5 million) reported in 3Q 2002. During the third quarter, Habitaria sold
102 housing units compared to 101 units sold in the same period of 2002,
although the sales mix favored more expensive housing units. The increase in
sales translated into a 25.2% increase in Habitaria's quarterly operating
income. The company reported a net profit of Ch$273 million (US$0.4 million) for
the quarter.
Since Habitaria recognizes income (and its corresponding cost) related to the
sale of its housing units in the final phase of the sales process, revenues do
not fully reflect units sold under agreement for future delivery during the
period. Administration and overhead expenses are recognized when incurred.
Therefore, financial results may reflect a mis-matching of revenues and
expenses.
As September 30, 2003, an additional 83 apartments are under sales agreements,
to be delivered in future periods (not included in 3Q 2003 revenue). Habitaria's
inventory of finished stock as of September 30, 2003 (excluding pre-sold units
as of the same date) was 269 apartments and homes. Habitaria initiated
development of four new phases of its existing projects in October, to be
completed during 2004.
#
All of Quinenco's Earnings and Press Releases and other relevant information on
the Company, including quarterly financial statements, are available for viewing
on the Company's website:
www. quinenco.cl
www. quinencogroup.com
Page 17 of 17
================================================================================
QUINENCO S.A.
Enrique Foster Sur No. 20, 14th Floor
Santiago / CHILE
Phone (56-2) 750-7100
Fax # (56-2) 750-7101
================================================================================
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.
QUINENCO S.A.
By: /s/ Luis Fernando Antunez
----------------------------------------
Name: Luis Fernando Antunez
Title: Authorized Representative
Dated: November 14, 2003