Madeco 6K for the fourth Quarter of 2008

FOR IMMEDIATE RELEASE



MADECO S.A. ANNOUNCES



CONSOLIDATED RESULTS FOR THE FOURTH QUARTER OF 2008



(Santiago, Chile, February 24, 2009) Madeco S.A. (“Madeco”) (NYSE ticker: MAD) yesterday announced its consolidated financial results in Chilean GAAP for the fourth quarter which ended December 31, 2008. All figures are expressed in Chilean pesos as of December 31, 2008. Conversions to U.S. dollars made in this report are based on the exchange rate on that date (US$1.00 = Ch$636.45 and UF1.00 = Ch$21,452.57 as of December 31, 2008).

Madeco Highlights


1 Due to the sale of the Wire and Cable unit in 3Q08 the operational and non-operational effects of this business unit were consolidated until September 2008, so the reader must consider this effect if figures between 2007 and 2008 are compared.




  1. Highlights of the Income Statement (Exhibit 1 and 2)


Net Income 

Net income for 4Q08 reached Ch$8,306 million higher than the Ch$2,355 million totaled the year before. The larger result is due to a profit in non-operating result (Ch$27,121 million), explained by higher profits from price-level restatement and exchange differences, and increased other non-operating income. Nevertheless, the mentioned gain was offset by; a reduction in operating income (Ch$5,973 million) driven by the lack of the Wire & Cable unit and the lower results from the Brass Mills unit; and higher charges related to income tax, minority interest and other charges (Ch$15,197 million).

Revenues 

Revenues in 4Q08 were Ch$59,757 million, a 60.7% lower than the same quarter of 2007. The reduction in consolidated revenues is principally explained by the no-consolidation of the Wire & Cable unit (due to it was sold in 3Q08) and the lower demand observed by the Brass Mills unit. These effects were offset by the higher sales of the Flexible Packaging unit, in terms of volumes and selling prices. Volumes for the Brass Mills unit showed a reduction of 1,388 tonnes, partially offset by the higher sales of 155 tonnes of the Profiles unit.

Gross Income 

Gross income in 4Q08 was Ch$5,528 million, 64.5% lower than the Ch$15,583 million reported in 4Q07 as a result of a 60.7% decrease in revenues and a 60.3% decrease in cost of sales. The reduction in gross income is explained by the absence of the Wire & Cable unit, and the lower results achieved by the Brass Mills and Profiles units due to the lower demand of it products during 4Q08 and higher unit costs. Those effects were counterbalance by the results of the Flexible Packaging unit. As a percentage of sales, the margin ratio varied from 10.2% to 9.3%.

Operating Income 

Operating income for 4Q08 amounted to a loss of Ch$1,249 million, from a gain of Ch$4,724 million obtained in the same period the year before. The reduction of the operational income is justified by the lack of the Wire & Cable unit and the decreased operational income obtained by the Brass Mills unit, these effects were offset by the higher gains obtained by the Flexible Packaging unit.

Non-Operating Result 

The Company’s non-operating result for 4Q08 amounted to Ch$20,989 million, Ch$27,121 million higher than the loss of Ch$6,621 million reported in 4Q07. This was attributable to an increment in price-level restatement and exchange differences of Ch$13,782 million and higher other non-operating income of Ch$8,645 million (net from expenses). The gain in exchange differences derived from the valuation of the U.S. dollar against the Chilean peso, and the balance between assets and liabilities held by the Company in U.S. dollars during 4Q08.

Income Tax 

During 4Q08, income tax amounted to Ch$10,371 million, compared to the positive balance of Ch$4,492 million in the same period of the year before, as a result of the higher valuation of foreign investments, higher non operational result, offset by a reduced operational income.

Minority Interest 

While in 4Q07 the Company’s minority interest charges (reflecting mainly the portion of earnings/losses corresponding to the participation of minority shareholders in the subsidiaries Alusa, Indalum and Decker) amounted to Ch$674 million, in 4Q08 totalized Ch$1,045 million mainly as result of higher profits obtained mainly by Alusa during the period.




  1. Analysis by Business Unit (Exhibits 3 to 6)
Wire and Cable 

The balances that appear on the Wire & Cable unit are explained by how figures are prepared to be presented, i.e. the historical balances accrued as of September 2008 by this former unit of the Company, have the same value as those recorded in December 2008; but for purposes of presentation, the balances of September were adjusted according the variation of the Chilean CPI index, so when the adjusted figures are contrasted with the recorded figures of December, there is a difference between them, that generates the balance mentioned above.

Brass Mills 

Revenues in 4Q08 reached to Ch$15,587 million, 35.1% lower than the Ch$24,035 million reported in 4Q07. This was due to a drop of volumes sold and to lower selling prices due to the fell of the price of the copper in the 4Q08.

Cost of sales showed a reduction of 20.7% as a result of the lesser volume sales. Nonetheless, as percentage of sales the ratio increased from 93.8% to 114.8% as result of the sale of products below its costs due to the abrupt decline in the price of copper in the last quarter of the year. This negative gap is explained because selling prices are usually set at the LME price and costs are estimated using the weighted average cost method that conform to LME price with a lag. These losses were partially offset by hedges taken by the Company.

Gross income decreased by Ch$3,782 million in 4Q08 from a positive balance of Ch$1,482 million in 4Q07, this reduction is explained principally by higher costs of products sold, as was explained before.

Selling, general and administrative expenses rose by 79.2%, from Ch$1,661 million to Ch$2,976 million, explained by increased salaries (due to CPI adjustments) and more marketing and commercial activity.

Operating income totaled a loss of Ch$5,276 million in 4Q08 compare to the loss of Ch$179 million of 4Q07, due to lower gross income and higher selling, general and administrative expenses. Nevertheless, this effect was partially balanced by the reduction of labor intensive and low volume products.

Flexible Packaging 

Revenues rose by 83.0%, from Ch$22,793 million in 4Q07 to Ch$41,706 million in 4Q08 as result of higher volumes sold and higher selling prices. Volume sales increased by 11.2% (or 1,101 tonnes) in 4Q08, explained by a growth of volume sales of Peru (1,305 tonnes), balanced by reduced sales in Chile and Argentina.

Compared to 4Q07 cost of sales rose by 79.3% in 4Q08, from Ch$19,185 million to Ch$34,398 million. The higher cost of sales is explained by higher sales of the period and higher costs of raw materials. As a percentage of sales, the ratio of cost varied from 84.2% to 82.5%.

Gross income grew by 102.5% from Ch$3,608 million in 4Q07 to Ch$7,308 million in 4Q08, mainly due to the good performance of the Peruvian subsidiary (in terms of gross margin and gross income), followed by the results of the Chilean and Argentinean subsidiaries. In the case of Peru, the increased margins are explained by higher sales and to the replacement of lower margin products by high added value products.

Selling, general and administrative expenses amounted to Ch$2,343 million in 4Q08 an increment of 70.8% in contrast with the Ch$1,372 million of 4Q07. As a percentage of sales, SG&A dropped from 6.0% to 5.6% in 4Q08. In addition, the growth of expenses is explained by higher salaries, marketing activity and other general expenses.

Operating income in 4Q08 was Ch$4,965 million compared to Ch$2,236 million in 4Q07, attributable to the good performance of the Peruvian subsidiary (amounting 89.3% of the total business unit’s variation) chased by the Argentinean and Chilean divisions.

Profiles 

Revenues in 4Q08 reached to Ch$8,958 million, 4.9% higher than the Ch$8,543 million reported in 4Q07. This was due to increased volumes sold (155 tonnes or 6.5%) in spite of a reduction of 1.5% in selling prices.

Cost of sales increased by 10.3%, from Ch$6,835 million in 4Q07 to Ch$7,539 million in 4Q08. As percentage of sales, the unit’s costs rise from 80.0% to 84.2%, explained by higher unit costs (lower production of profiles replaced by imports), and to a lesser extent by the addition of the new PVC profiles plant.

Gross income in 4Q08 declined by 16.9% compared to Ch$1,708 million reached in 4Q07, as result of higher costs of sales for the period in comparison with 2007, mitigated by higher volumes of profiles sold.

Selling, general and administrative expenses decreased 9.6%, from Ch$1,744 million to Ch$1,577 million in 4Q08, attributable to lower expenses (consultant fees, travel expenses, etc.), offset by higher marketing and commercial activity of the Company in order to enhance its commercial network by the incorporation of new branches across Chile and the sales of its new PVC division.

Operating income for 4Q08 totaled a loss of Ch$158 million, lower than the loss of Ch$36 million reported in 4Q07, due to the reduced gross income, offset by lower selling, general and administrative expenses.




  1. Balance Sheet Analysis (Exhibit 7)
Assets 

The Company’s assets as of December 31, 2008 amounted to Ch$551,642 million, an increase over the Ch$530,449 million reported as of December 31, 2007.

Current Assets
Amounted to Ch$302,631 million, 2.4% lower than the Ch$309,953 million of December 2007, explained by lower inventories (Ch$91,927 million), accounts receivable (Ch$59,820 million), and recoverable taxes (Ch$10,599 million). This effects were balanced by higher time deposits (Ch$132,003 million) and other current assets (Ch$36,977 million).The increase in time deposits derived from the payment received from Nexans due to the sale of the Wire & Cable unit of the Company. Furthermore, the observed declines in inventories, accounts receivable and taxes are explained by the transfer of the Wire & Cable subsidiaries.

Fixed Assets
Amounted to Ch$115,535 million, a reduction of 36.5% compared to 4Q07, explained by the sale of the Company’s Wire & Cable unit. Lower balances in machinery and equipment, buildings and land, were offset by the reduction in depreciation charge for the period. In addition, this reduction was partially offset by the Company’s investments between 4Q07 and 4Q08.

Other Assets
Recorded Ch$133,476 million compared to the Ch$38,689 million of 4Q07, due to the addition of the shares of Nexans, partially offset by reductions in goodwill and other assets, balances related to the subsidiaries sold to Nexans.

Liabilities 

Total liabilities as of December 31, 2008 amounted to Ch$110,912 million a reduction of 49.2% compared to December 2007.

Bank Debt
As of December 31, 2008, amounted to Ch$49,627 million, representing a reduction of 48.8% (or Ch$47,317 million) in comparison to 2007, due to the payment of the loans related to the former Wire & Cable unit, the scheduled payments of the other business units of the Company (corporate syndicated loan, and Profiles and Flexible Packaging units) and to the lower needs to finance working capital.

Bonds
In early June 2008 the Company paid the schedule bonds and prepaid all the remaining bonds due, totaling Ch$23,636 million. The funds to pay this debt were obtained through short-term borrowings, which were paid in early 4Q08.

Shareholders’ Equity 

As of December 31, 2008 shareholders’ equity amounted Ch$415,179 million, which represent an increase of 44.5% compared to 2007.

Paid Capital
As in December 2007, paid capital in December 2008 totalized Ch$255,184 million.

Share Premium
The share premium, as in the case of paid capital, presented no differences if the amounts of 2008 and 2007 are compared ($ 46,888 million).

Other Reserves (Reserves)
Increased by Ch$30,615 million from a loss of Ch$19,765 million in 4Q07, mainly due to the reduction of balances related to cable subsidiaries that were sold the third quarter of 2008 (approximately Ch$24,808 million) and the effect of the appreciation of foreign investments (implementation of the Chilean accounting bulletin N°64 or BT64).

Retained Earnings / (Accumulated Losses)
Retained earnings for the period totalized Ch$102,256 million higher than the Ch$5,072 million posted in 4Q07 experiencing an increase of Ch$97,184 million. The balance for 2008 was driven by the extraordinary net income obtained from the sale of the Wire & Cable unit, and to a lesser extent by the profits of 2008 (ordinary net income) and the balance of retained earnings.



For further information contact:
Jose Luis Valdes
Investor Relations

Tel. : (56 2) 520-1388
Fax : (56 2) 520-1545
E-mail : ir@madeco.cl
Web Site : www.madeco.cl

***************

Madeco, previously Manufacturas de Cobre MADECO S.A., was incorporated in 1944 as an open corporation under the laws of the Republic of Chile, and today has operations in Chile, Peru, and Argentina. Madeco is considered, a Latin American leader, in the manufacture of finished and semi-finished products in copper, copper alloys and aluminum. The Company is also a leader in the production of flexible packaging used in packing mass consumption products like foods, sweets and cosmetics.

Readers are warned not to place too much reliance on the future declarations contained in the above text, which are based on the position today. The Company is under no obligation to announce publicly the results of revisions to those declarations about the future which might be made to reflect events or circumstances after today including, but without limitation to changes in the Company’s strategy or in its capital expenses, or to reflect the occurrence of unforeseen events.



Exhibit 1: Consolidated Income Statement
(Fourth Quarter)
                     
    million of Ch$       million of US$ (1)    
    4Q07 4Q08   % Variation   4Q07 4Q08   % Variation
                     
Revenues   152,125 59,757   -60.7%   306.2 93.9   -69.3%
COGS   (136,542) (54,229)   -60.3%   (274.8) (85.2)   -69.0%
Gross Income   15,583 5,528   -64.5%   31.4 8.7   -72.3%
SG&A   (10,859) (6,777)   -37.6%   (21.9) (10.6)   -51.3%
Operating Income   4,724 (1,249)   -126.4%   9.5 (2.0)   -120.6%
                     
Financial income   588 2,836   382.5%   1.2 4.5   276.7%
Equity in earning (losses) of related companies (73) 0   -100.0%   (0,1) 0.0   -100.0%
Other non-operating income   218 10,178   4566.9%   0.4 16.0   3543.5%
Financial expenses   (3,742) (1,667)   -55.5%   (7.5) (2.6)   -65.2%
Positive goodwill amortization   (387) (89)   -76.9%   (0.8) (0.1)   -82.0%
Other non-operating expenses   (303) (1,618)   434.3%   (0.6) (2.5)   317.2%
Price-level restatement   (2,522) 11,259   -546.4%   (5.1) 17.7   -448.5%
Non-Operating Results   (6,221) 20,899   -435.9%   (12.5) 32.8   -362.3%
                     
Income (Loss) before income taxes   (1,497) 19,650   -1412.6%   (3.0) 30.9   -1124.8%
Income tax   4,492 (10,371)   -330.9%   9.0 (16.3)   -280.3%
Minority interest   (674) (1,045)   55.0%   (1.4) (1.6)   21.0%
Negative goodwill amortization   34 72   109.9%   0.1 0.1   63.8%
Net Income (Loss)   2,355 8,306   252.7%   4.7 13.1   175.3%
                     
Gross Margin   10.2% 9.3%   -   10.2% 9.3%   -
SG&A / Sales   7.1% 11.3%   -   7.1% 11.3%   -
Operating Margin   3.1% -2.1%   -   3.1% -2.1%   -
                     
1 Exchange rate on December 31 2008 US$1.00 = 636.45
1 Exchange rate on December 31 2007 US$1.00 = 496.89

Exhibit 2: Consolidated Income Statement
(YTD December)
                     
    million of Ch$       million of US$ (1)    
    YTD Dec 07 YTD Dec 08   % Variation   YTD Dec 07 YTD Dec 08   % Variation
                     
Revenues   695,883 692,958   -0.4%   1,400.5 1,088.8   -22.3%
COGS   (614,304) (612,810)   -0.2%   (1,236.3) (962.9)   -22.1%
Gross Income   81,579 80,148   -1.8%   164.2 125.9   -23.3%
SG&A   (37,894) (40,134)   5.9%   (76.3) (63.1)   -17.3%
Operating Income   43,685 40,014   -8.4%   87.9 62.9   -28.5%
                     
Financial income   2,571 5,093   98.1%   5.2 8.0   54.7%
Equity in earning (losses) of related companies   (61) (1)   -99.1%   (0,1) (0.0)   -99.3%
Other non-operating income   890 161,585   18052.3%   1.8 253.9   14071.9%
Financial expenses   (13,980) (16,460)   17.7%   (28.1) (25.9)   -8.1%
Positive goodwill amortization   (1,823) (16,855)   824.7%   (3.7) (26.5)   622.0%
Other non-operating expenses   (2,152) (30,244)   1305.4%   (4.3) (47.5)   997.2%
Price-level restatement   (3,044) (2,769)   -9.1%   (6.1) (4.4)   -29.0%
Non-Operating Results   (17,599) 100,350   -670.2%   (35.4) 157.7   -545.2%
                     
Income (Loss) before income taxes   26,086 140,364   438.1%   52.5 220.5   320.1%
Income tax   (1,171) (39,709)   3290.3%   (2.4) (62.4)   2546.9%
Minority interest   (3,602) (3,684)   2.3%   (7.2) (5.8)   -20.2%
Negative goodwill amortization   97 212   118.4%   0.2 0.3   70.5%
Net Income (Loss)   21,410 97,184   353.9%   43.1 152.7   254.4%
                     
Gross Margin   11.7% 11.6%   -   11.7% 11.6%   -
SG&A / Sales   5.4% 5.8%   -   5.4% 5.8%   -
Operating Margin   6.3% 5.8%   -   6.3% 5.8%   -
                     
1 Exchange rate on December 31 2008 US$1.00 = 636.45
1 Exchange rate on December 31 2007 US$1.00 = 496.89

Exhibit 3: EBITDA by Business Unit
(Fourth Quarter)
                 
4Q07                
Ch$ million   COPPER ROD WIRE & CABLE BRASS MILLS F. PACKAGING PROFILES   Total
                 
Revenues   16,952 79,802 24,035 22,793 8,543   152,125
COGS   (16,984) (70,985) (22,553) (19,185) (6,835)   (136,542)
Gross Income   (32) 8,817 1,482 3,608 1,708   15,583
SG&A   0 (6,082) (1,661) (1,372) (1,744)   (10,859)
Operating Income   (32) 2,735 (179) 2,236 (36)   4,724
EBITDA   9 4,424 501 3,496 354   8,784
                 
Gross Margin   -0.2% 11.0% 6.2% 15.8% 20.0%   10.2%
SG&A / Sales   0.0% 7.6% 6.9% 6.0% 20.4%   7.1%
EBITDA Margin   0.1% 5.5% 2.1% 15.3% 4.1%   5.8%
                 
Segment Contribution                
% Revenues   11.1% 52.5% 15.8% 15.0% 5.6%   100.0%
% EBITDA   0.1% 50.4% 5.7% 39.8% 4.0%   100.0%
                 
4Q08                
Ch$ million   COPPER ROD WIRE & CABLE BRASS MILLS F. PACKAGING PROFILES   Total
                 
Revenues   (970) (5,524) 15,587 41,706 8,958   59,757
COGS   895 4,700 (17,887) (34,398) (7,539)   (54,229)
Gross Income   (75) (824) (2,300) 7,308 1,419   5,528
SG&A   0 119 (2,976) (2,343) (1,577)   (6,777)
Operating Income   (75) (705) (5,276) 4,965 (158)   (1,249)
EBITDA   (77) (778) (4,595) 6,885 290   1,725
                 
Gross Margin   7.7% 14.9% -14.8% 17.5% 15.8%   9.3%
SG&A / Sales   0.0% 2.2% 19.1% 5.6% 17.6%   11.3%
EBITDA Margin   7.9% 14.1% -29.5% 16.5% 3.2%   2.9%
                 
Segment Contribution                
% Revenues   -1.6% -9.2% 26.1% 69.8% 15.0%   100.0%
% EBITDA   -4.5% -45.1% -266.4% 399.1% 16.8%   100.0%
                 
2008 versus 2007                
% change   COPPER ROD WIRE & CABLE BRASS MILLS F. PACKAGING PROFILES   Total
                 
Revenues   -105.7% -106.9% -35.1% 83.0% 4.9%   -60.7%
COGS   -105.3% -106.6% -20.7% 79.3% 10.3%   -60.3%
Gross Income   134.4% -109.3% -255.2% 102.5% -16.9%   -64.5%
SG&A   N/A -102.0% 79.2% 70.8% -9.6%   -37.6%
Operating Income   134.4% -125.8% 2847.5% 122.0% 338.9%   -126.4%
EBITDA   -955.6% -117.6% -1017.2% 96.9% -18.1%   -80.4%

Exhibit 4: EBITDA by Business Unit
(YTD December)
                 
YTD Dec 07                
Ch$ million   COPPER ROD WIRE & CABLE BRASS MILLS F. PACKAGING PROFILES   Total
                 
Revenues   77,975 370,530 112,201 96,920 38,257   695,883
COGS   (76,988) (317,230) (107,818) (81,738) (30,530)   (614,304)
Gross Income   987 53,300 4,383 15,182 7,727   81,579
SG&A   0 (21,027) (5,864) (5,618) (5,385)   (37,894)
Operating Income   987 32,273 (1,481) 9,564 2,342   43,685
EBITDA   1,142 40,006 1,230 14,745 3,752   60,875
                 
Gross Margin   9.6% 17.8% 14.1% 16.8% 18.8%   15.6%
SG&A / Sales   0.3% 6.0% 3.9% 5.9% 9.7%   4.8%
EBITDA Margin   9.4% 14.5% 12.1% 16.3% 12.2%   13.1%
                 
Segment Contribution                
% Revenues   11.2% 53.2% 16.1% 13.9% 5.5%   100.0%
% EBITDA   1.9% 65.7% 2.0% 24.2% 6.2%   100.0%
                 
YTD Dec 08                
Ch$ million   COPPER ROD WIRE & CABLE BRASS MILLS F. PACKAGING PROFILES   Total
                 
Revenues   95,248 341,708 88,907 130,445 36,650   692,958
COGS   (94,567) (291,895) (87,633) (108,410) (30,305)   (612,810)
Gross Income   681 49,813 1,274 22,035 6,345   80,148
SG&A   0 (19,943) (7,557) (7,207) (5,427)   (40,134)
Operating Income   681 29,870 (6,283) 14,828 918   40,014
EBITDA   745 34,383 (3,944) 20,773 2,642   54,599
                 
Gross Margin   1.7% 15.3% 3.3% 15.6% 20.3%   12.1%
SG&A / Sales   0.0% 5.1% 4.8% 5.7% 12.3%   5.0%
EBITDA Margin   1.9% 12.2% 0.8% 15.2% 11.4%   9.6%
                 
Segment Contribution                
% Revenues   13.7% 49.3% 12.8% 18.8% 5.3%   100.0%
% EBITDA   1.4% 63.0% -7.2% 38.0% 4.8%   100.0%
                 
2008 versus 2007                
% change   COPPER ROD WIRE & CABLE BRASS MILLS F. PACKAGING PROFILES   Total
                 
Revenues   22.2% -7.8% -20.8% 34.6% -4.2%   -0.4%
COGS   22.8% -8.0% -18.7% 32.6% -0.7%   -0.2%
Gross Income   -31.0% -6.5% -70.9% 45.1% -17.9%   -1.8%
SG&A   0.0% -5.2% 28.9% 28.3% 0.8%   5.9%
Operating Income   -31.0% -7.4% 324.2% 55.0% -60.8%   -8.4%
EBITDA   -34.8% -14.1% -420.7% 40.9% -29.6%   -10.3%

Exhibit 5: EBITDA by Business Unit and Country
(Fourth Quarter)
                                   
        4Q07                 4Q08        
        (million of Ch$)                 (million of Ch$)        
  Chile Peru         Interco. COPPER ROD   Chile Peru         Interco. COPPER ROD
                                   
Tons (Third parties) 1,893 2,700         0 4,593   0 0         0 0
Tons (Intercompany) 4,973 0         (4,973) 0   0 0         0 0
Tons (Total) 6,866 2,700         (4,973) 4,593   0 0         0 0
                                   
Revenues (Third parties) 7,705 9,247         0 16,952   (309) (661)         0 (970)
Revenues (Intercompany) 20,878 0         (20,878) 0   (244) 0         244 0
Total revenues 28,583 9,247         (20,878) 16,952   (553) (661)         244 (970)
COGS (28,384) (9,468)         20,868 (16,984)   494 650         (5) 895
Gross Income 199 (221)         (10) (32)   (59) (11)         (5) (75)
SG&A 0 0         0 0   0 0         0 0
Operating Income 199 (221)         (10) (32)   (59) (11)         (5) (75)
EBITDA 242 (221)         (12) 9   (60) (11)         (6) (77)
                                   
Gross Margin 0.7% -2.4% - - -   - -0.2%   10.7% 1.7% - - - - - 7.7%
EBITDA Margin 0.8% -2.4% - - -   - 0.1%   10.8% 1.7% - - - - - 7.9%
                                   
  Chile Brazil Optical F. Argentina Peru Colombia Interco. WIRE & CABLE   Chile Brazil Optical F. Argentina Peru Colombia Interco. WIRE & CABLE
                                   
Tons (Third parties) 1,869 7,486 0 1,651 3,836 1,019 0 15,861   0 0 0 0 0 0 0 0
Tons (Intercompany) 144 230 0 337 137 0 (848) 0   0 0 0 0 0 0 0 0
Tons (Total) 2,013 7,716 0 1,988 3,973 1,019 (848) 15,861   0 0 0 0 0 0 0 0
Kms. 0 0 808 0 0 0 0 808   0 0 0 0 0 0 0 0
                                   
Revenues (Third parties) 12,536 34,978 374 5,168 20,861 5,885 0 79,802   (237) (3,028) (34) (264) (1,574) (387) 0 (5,524)
Revenues (Intercompany) 1,303 741 0 562 480 0 (3,086) 0   (127) (53) 0 (39) (41) 0 260 0
Total revenues 13,839 35,719 374 5,730 21,341 5,885 (3,086) 79,802   (364) (3,081) (34) (303) (1,615) (387) 260 (5,524)
COGS (11,821) (33,777) (335) (5,051) (18,135) (5,066) 3,200 (70,985)   281 2,711 33 255 1,359 334 (273) 4,700
Gross Income 2,018 1,942 39 679 3,206 819 114 8,817   (83) (370) (1) (48) (256) (53) (13) (824)
SG&A (694) (3,279) (208) (200) (837) (297) (567) (6,082)   38 186 (220) 15 65 24 11 119
Operating Income 1,324 (1,337) (169) 479 2,369 522 (453) 2,735   (45) (184) (221) (33) (191) (29) (2) (705)
EBITDA 1,697 (378) (127) 552 2,589 597 (506) 4,424   (64) (227) (224) (39) (206) (33) 15 (778)
                                   
Gross Margin 14.6% 5.4% 10.4% 11.8% 15.0%   - 11.0%   22.8% 12.0% 2.9% 15.8% 15.9% 13.7% - 14.9%
EBITDA Margin 12.3% -1.1% -34.0% 9.6% 12.1%   - 5.5%   17.6% 7.4% 658.8% 12.9% 12.8% 8.5% - 14.1%
                                   
  Chile Coin Argentina       Interco. BRASS MILLS   Chile Coin Argentina       Interco. BRASS MILLS
                                   
Tons (Third parties) 3,729 436 569       0 4,734   2,874 116 356       0 3,346
Tons (Intercompany) 578 0 17       (595) 0   251 0 0       (251) 0
Tons (Total) 4,307 436 586       (595) 4,734   3,125 116 356       (251) 3,346
                                   
Revenues (Third parties) 18,395 3,120 2,520       0 24,035   9,977 2,405 3,205       0 15,587
Revenues (Intercompany) 3,868 0 73       (3,941) 0   1,534 12 62       (1,608) 0
Total revenues 22,263 3,120 2,593       (3,941) 24,035   11,511 2,417 3,267       (1,608) 15,587
COGS (21,692) (2,497) (2,366)       4,002 (22,553)   (13,481) (1,813) (4,190)       1,597 (17,887)
Gross Income 571 623 227       61 1,482   (1,970) 604 (923)       (11) (2,300)
SG&A (1,083) (146) (174)       (258) (1,661)   (1,211) (881) (608)       (276) (2,976)
Operating Income (512) 477 53       (197) (179)   (3,181) (277) (1,531)       (287) (5,276)
EBITDA 75 558 118       (250) 501   (2,758) (210) (1,325)       (302) (4,595)
                                   
Gross Margin 2.6% 20.0% 8.8% - -   - 6.2%   -17.1% 25.0% -28.3% - - - - -14.8%
EBITDA Margin 0.3% 17.9% 4.6% - -   - 2.1%   -24.0% -8.7% -40.6% - - - - -29.5%
                                   
  Chile Argentina Peru       Interco. F. PACKAGING   Chile Argentina Peru       Interco. F. PACKAGING
                                   
Tons (Third parties) 2,953 1,577 5,320       (43) 9,807   2,876 1,546 6,625       (139) 10,908
Tons (Intercompany) 0 0 0       0 0   0 0 0       0 0
Tons (Total) 2,953 1,577 5,320       (43) 9,807   2,876 1,546 6,625       (139) 10,908
                                   
Revenues (Third parties) 9,797 4,028 9,094       (126) 22,793   10,253 8,567 23,289       (403) 41,706
Revenues (Intercompany) 0 0 0       0 0   0 0 0       0 0
Total revenues 9,797 4,028 9,094       (126) 22,793   10,253 8,567 23,289       (403) 41,706
COGS (8,264) (3,390) (7,777)       246 (19,185)   (8,544) (7,579) (18,744)       469 (34,398)
Gross Income 1,533 638 1,317       120 3,608   1,709 988 4,545       66 7,308
SG&A (508) (226) (541)       (97) (1,372)   (591) (340) (1,030)       (382) (2,343)
Operating Income 1,025 412 776       23 2,236   1,118 648 3,515       (316) 4,965
EBITDA 1,576 640 1,256       24 3,496   1,736 1,070 4,397       (318) 6,885
                                   
Gross Margin 15.6% 15.8% 14.5% - -   - 15.8%   16.7% 11.5% 19.5% - - - - 17.5%
EBITDA Margin 16.1% 15.9% 13.8% - -   - 15.3%   16.9% 12.5% 18.9% - - - - 16.5%
                                   
  Chile             PROFILES   Chile             PROFILES
                                   
Tons (Third parties) 2,398             2,398   2,553             2,553
Tons (Intercompany) 0             0   0             0
Tons (Total) 2,398             2,398   2,553             2,553
                                   
Revenues (Third parties) 8,543             8,543   8,958             8,958
Revenues (Intercompany) 0             0   0             0
Total revenues 8,543             8,543   8,958             8,958
COGS (6,835)             (6,835)   (7,539)             (7,539)
Gross Income 1,708             1,708   1,419             1,419
SG&A (1,744)             (1,744)   (1,577)             (1,577)
Operating Income (36)             (36)   (158)             (158)
EBITDA 354             354   290             290
                                   
Gross Margin 20.0% - - - -   - 20.0%   15.8% - - - - - - 15.8%
EBITDA Margin 4.1% - - - -   - 4.1%   3.2% - - - - - - 3.2%

Exhibit 6: EBITDA by Business Unit and Country
(YTD December)
                                   
        YTD Dec 07                 YTD Dec 08        
        (million of Ch$)                 (million of Ch$)        
  Chile Peru         Interco. COPPER ROD   Chile Peru         Interco. COPPER ROD
                                   
Tons (Third parties) 8,827 10,136         0 18,963   13,841 8,064         0 21,905
Tons (Intercompany) 15,827 0         (15,827) 0   3,256 0         (3,256) 0
Tons (Total) 24,654 10,136         (15,827) 18,963   17,097 8,064         (3,256) 21,905
                                   
Revenues (Third parties) 37,682 40,293         0 77,975   58,525 36,723         0 95,248
Revenues (Intercompany) 70,778 0         (70,778) 0   13,465 0         (13,465) 0
Total revenues 108,460 40,293         (70,778) 77,975   71,990 36,723         (13,465) 95,248
COGS (107,942) (39,971)         70,925 (76,988)   (72,309) (36,110)         387 (94,567)
Gross Income 518 322         147 987   (319) 613         387 681
SG&A 0 0         0 0   0 0         0 0
Operating Income 518 322         147 987   (319) 613         387 681
EBITDA 686 322         134 1,142   (255) 613         387 745
                                   
Gross Margin 0.5% 0.8% - - -   - 1.3%   -0.4% 1.7% - - - - - 0.7%
EBITDA Margin 0.6% 0.8% - - -   - 1.5%   -0.4% 1.7% - - - - - 0.8%
                                   
  Chile Brazil Optical F. Argentina Peru Colombia Interco. WIRE & CABLE   Chile Brazil Optical F. Argentina Peru Colombia Interco. WIRE & CABLE
                                   
Tons (Third parties) 8,425 34,100 0 7,583 14,823 4,031 0 68,962   6,742 31,376 0 3,041 12,908 3,026 0 57,093
Tons (Intercompany) 284 1,134 0 1,687 741 0 (3,846) 0   767 650 0 860 419 0 (2,696) 0
Tons (Total) 8,709 35,234 0 9,270 15,564 4,031 (3,846) 68,962   7,509 32,026 0 3,901 13,327 3,026 (2,696) 57,093
Kms. 0 0 3,533 0 0 0 0 3,533   0 0 2,256 0 0 0 0 2,256
                #N/A                  
Revenues (Third parties) 56,237 173,083 2,559 22,954 91,532 24,165 0 370,530   47,978 168,241 1,887 14,680 87,444 21,478 0 341,708
Revenues (Intercompany) 3,181 4,054 0 3,862 3,293 0 (14,390) 0   7,581 2,938 0 2,145 2,264 0 (14,928) 0
Total revenues 59,418 177,137 2,559 26,816 94,825 24,165 (14,390) 370,530   55,559 171,179 1,887 16,825 89,708 21,478 (14,928) 341,708
COGS (50,931) (154,832) (2,593) (23,160) (79,732) (20,096) 14,114 (317,230)   (46,233) (150,619) (1,810) (14,139) (75,526) (18,566) 14,998 (291,895)
Gross Income 8,487 22,305 (34) 3,656 15,093 4,069 (276) 53,300   9,326 20,560 77 2,686 14,182 2,912 70 49,813
SG&A (2,615) (10,944) (402) (1,037) (3,150) (1,155) (1,724) (21,027)   (2,833) (10,332) (356) (852) (3,612) (1,355) (603) (19,943)
Operating Income 5,872 11,361 (436) 2,619 11,943 2,914 (2,000) 32,273   6,493 10,228 (279) 1,834 10,570 1,557 (533) 29,870
EBITDA 7,432 15,961 (249) 2,930 12,885 3,205 (2,158) 40,006   7,147 12,596 (136) 2,168 11,421 1,837 (650) 34,383
                                   
Gross Margin 14.3% 12.6% -1.3% 13.6% 15.9% 16.8% - 14.4%   16.8% 12.0% 4.1% 16.0% 15.8% 13.6% - 14.6%
EBITDA Margin 12.5% 9.0% -9.7% 10.9% 13.6% 13.3% - 10.8%   12.9% 7.4% -7.2% 12.9% 12.7% 8.6% - 10.1%
                                   
  Chile Coin Argentina       Interco. BRASS MILLS   Chile Coin Argentina       Interco. BRASS MILLS
                                   
Tons (Third parties) 18,437 1,320 2,074       0 21,831   15,328 300 1,882       0 17,510
Tons (Intercompany) 1,507 0 45       (1,552) 0   1,881 0 0       (1,881) 0
Tons (Total) 19,944 1,320 2,119       (1,552) 21,831   17,209 300 1,882       (1,881) 17,510
                                   
Revenues (Third parties) 91,290 10,624 10,287       0 112,201   67,801 7,177 13,929       0 88,907
Revenues (Intercompany) 15,769 376 160       (16,305) 0   19,829 1,135 303       (21,267) 0
Total revenues 107,059 11,000 10,447       (16,305) 112,201   87,630 8,312 14,232       (21,267) 88,907
COGS (104,438) (10,103) (9,579)       16,302 (107,818)   (87,351) (7,018) (14,539)       21,275 (87,633)
Gross Income 2,621 897 868       (3) 4,383   279 1,294 (307)       8 1,274
SG&A (4,031) (490) (771)       (572) (5,864)   (4,302) (1,196) (1,379)       (680) (7,557)
Operating Income (1,410) 407 97       (575) (1,481)   (4,023) 98 (1,686)       (672) (6,283)
EBITDA 764 725 435       (694) 1,230   (2,289) 394 (1,264)       (785) (3,944)
                                   
Gross Margin 2.4% 8.2% 8.3% - -   - 3.9%   0.3% 15.6% -2.2% - - - - 1.4%
EBITDA Margin 0.7% 6.6% 4.2% - -   - 1.1%   -2.6% 4.7% -8.9% - - - - -4.4%
                                   
  Chile Argentina Peru       Interco. F. PACKAGING   Chile Argentina Peru       Interco. F. PACKAGING
                                   
Tons (Third parties) 11,208 5,629 24,232       (2,810) 38,259   12,843 7,332 24,487       (973) 43,689
Tons (Intercompany) 0 0 0       0 0   0 0 0       0 0
Tons (Total) 11,208 5,629 24,232       (2,810) 38,259   12,843 7,332 24,487       (973) 43,689
                                   
Revenues (Third parties) 38,509 16,114 46,314       (4,017) 96,920   41,508 27,409 63,470       (1,942) 130,445
Revenues (Intercompany) 0 0 0       0 0   0 0 0       0 0
Total revenues 38,509 16,114 46,314       (4,017) 96,920   41,508 27,409 63,470       (1,942) 130,445
COGS (32,049) (14,385) (39,067)       3,763 (81,738)   (34,768) (23,744) (51,836)       1,938 (108,410)
Gross Income 6,460 1,729 7,247       (254) 15,182   6,740 3,665 11,634       (4) 22,035
SG&A (2,136) (833) (2,365)       (284) (5,618)   (2,428) (1,256) (2,906)       (617) (7,207)
Operating Income 4,324 896 4,882       (538) 9,564   4,312 2,409 8,728       (621) 14,828
EBITDA 6,413 1,857 7,012       (537) 14,745   6,567 3,631 11,192       (617) 20,773
                                   
Gross Margin 16.8% 10.7% 15.6% - - - - 15.7%   16.2% 13.4% 18.3% - - - - 16.9%
EBITDA Margin 16.7% 11.5% 15.1% - - - - 15.2%   15.8% 13.2% 17.6% - - - - 15.9%
                                   
  Chile             PROFILES   Chile             PROFILES
                                   
Tons (Third parties) 10,354             10,354   10,851             10,851
Tons (Intercompany) 0             0   0             0
Tons (Total) 10,354             10,354   10,851             10,851
                                   
Revenues (Third parties) 38,257             38,257   36,650             36,650
Revenues (Intercompany) 0             0   0             0
Total revenues 38,257             38,257   36,650             36,650
COGS (30,530)             (30,530)   (30,305)             (30,305)
Gross Income 7,727             7,727   6,345             6,345
SG&A (5,385)             (5,385)   (5,427)             (5,427)
Operating Income 2,342             2,342   918             918
EBITDA 3,752             3,752   2,642             2,642
                                   
Gross Margin 20.2% - - - -   - 20.2%   17.3% - - - - - - 17.3%
EBITDA Margin 9.8% - - - -   - 9.8%   7.2% - - - - - - 7.2%

Exhibit 7: Consolidated Balance Sheet
             
    million of Ch$   million of US$ (1)
    YTD Dec 07 YTD Dec 08   YTD Dec 07 YTD Dec 08
             
Cash   11,337 10,422   22.8 16.4
Time deposits and marketable securities   859 132,070   1.7 207.5
Accounts receivable   116,801 56,981   235.1 89.5
Accounts receivable from related companies   1,940 489   3.9 0.8
Inventories   146,884 54,957   295.6 86.4
Recoverable taxes   14,440 3,841   29.1 6.0
Prepaid expenses and other current assets   17,692 43,872   35.6 68.9
Total current assets   309,953 302,631   623.8 475.5
             
Property, plant and equipment (net)   181,808 115,535   365.9 181.5
             
Investments   7,180 124,811   14.4 196.1
Goodwill (net)   15,314 (1,084)   30.8 (1.7)
Long-term receivables   268 177   0.5 0.3
Other   15,927 9,571   32.1 15.0
Total other assets   38,689 133,476   77.9 209.7
             
ASSETS   530,449 551,642   1,067.5 866.7
             
             
             
Short-term bank borrowings   38,199 20,594   76.9 32.4
Current portion of long-term bank and other debt   19,223 8,822   38.7 13.9
Current portion of bonds payable   5,534 -   11.1 -
Current portion of long-term liabilities   2,518 2,186   5.1 3.4
Dividends payable   16,390 19   33.0 0.0
Accounts payable   33,276 17,774   67.0 27.9
Notes payable   3,545 2,880   7.1 4.5
Other payables   316 315   0.6 0.5
Notes and accounts payable to related companies   670 442   1.3 0.7
Accrued expenses   13,193 8,340   26.6 13.1
Withholdings payable   3,960 1,890   8.0 3.0
Deferred income   4,932 608   9.9 1.0
Income taxes   - 12,342   - 19.4
Other current liabilities   1,418 32   2.9 0.0
Total current liabilities   143,175 76,244   288.1 119.8
             
Long-term bank and other debt   52,341 33,021   105.3 51.9
Bonds payable   18,103 -   36.4 -
Accrued expenses   4,889 1,646   9.8 2.6
Total long-term liabilities   75,333 34,667   151.6 54.5
             
Minority Interest   24,561 25,551   49.4 40.1
             
             
Common stock   255,184 255,184   513.6 400.9
Share premium   46,888 46,888   94.4 73.7
Reserves   (19,765) 10,850   (39.8) 17.0
Retained earnings   5,072 102,256   10.2 160.7
Total Shareholders' Equity   287,380 415,179   578.4 652.3
             
LIABILITIES AND SHAREHOLDERS' EQUITY   530,449 551,642   1,067.5 866.7
             
1 Exchange rate on December 31 2008 US$1.00 = 636.45            
1 Exchange rate on December 31 2007 US$1.00 = 496.89            

Exhibit 8: Consolidated Statement of Cash Flow
             
    million of Ch$   million of US$ (1)
    YTD Dec 07 YTD Dec 08   YTD Dec 07 YTD Dec 08
             
Cash received from customers   841,965 800,286   1,694.5 1,257.4
Financial income received   4,881 4,942   9.8 7.8
Dividends and other distributions   - -   - -
Other incomes   11,103 24,853   22.3 39.0
Payments to suppliers and employees   (812,396) (747,165)   (1,635.0) (1,174.0)
Interests paid   (12,580) (10,130)   (25.3) (15.9)
Income taxes paid   (7,186) (9,076)   (14.5) (14.3)
Other expenses   (5,985) (3,796)   (12.0) (6.0)
Added Value Tax and others   (3,316) (5,886)   (6.7) (9.2)
Net cash flow from operating activities   16,487 54,028   33.2 84.9
             
             
Sale of Property, Plant and Equipment   1,018 141   2.0 0.2
Sale of permanent investments   0 192,630   0.0 302.7
Sale of other investments   - -   - -
Other proceeds from investments   4,486 -   9.0 -
Acquisition of fixed assets   (20,394) (24,856)   (41.0) (39.1)
Permanent investments   (10,703) (4,075)   (21.5) (6.4)
Other disbursements   (29) (29,994)   (0.1) (47.1)
Net cash flow used in investing activities   (25,622) 133,845   (51.6) 210.3
             
             
Issuance of shares   7,041 1,978   14.2 3.1
Loans obtained   244,073 234,957   491.2 369.2
Registered loans from related companies   - -   - -
Other financing sources   - -   - -
Dividends paid   (738) (17,977)   (1.5) (28.2)
Capital distributions   (5,532) -   (11.1) -
Repayments of bank borrowings   (238,543) (255,097)   (480.1) (400.8)
Repayments of bonds   (5,275) (23,382)   (10.6) (36.7)
Payment of expenses related to shares issuance   - -   - -
Payment loans documented from related companies   - -   - -
Others   - -   - -
Net cash flow provided by financing activities   1,026 (59,521)   2.1 (93.5)
             
             
Net Cash Flow for the Period   (8,109) 128,352   (16.3) 201.7
             
             
Effect of price-level restatements on cash and cash equivalents (216) 14,015   (0.4) 22.0
             
Net increase in cash and cash equivalents   (8,325) 142,367   (16.8) 223.7
             
Cash and cash equivalents at the beginning of year   20,521 12,195   41.3 19.2
             
Cash and cash equivalents at end of the period   12,195 154,563   24.5 242.9
             
             
1 Exchange rate on December 31 2008 US$1.00 = 636.45            
1 Exchange rate on December 31 2007 US$1.00 = 496.89