Consolidated December 31st

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Financial balances year 2002 | December 31st
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of US$)

	As of December 31,
	2002	2001
ASSETS
CURRENT ASSETS:
Cash	12,019	9,620
Time deposits	141,214	25,468
Marketable securities, net	346	1,575
Trade receivables, net	225,221	204,968
Notes receivable, net	2,622	129
Other receivables, net	132,732	188,595
Amounts due from related companies	21,693	3,500
Inventories, net	494,579	509,272
Income taxes recoverable	182,834	94,693
Prepaid expenses	7,561	7,350
Deferred income taxes	0	28,659
Other current assets	768	3,038
	_________	_________
Total current assets	1,221,589	1,076,867
	_________	_________
PROPERTY, PLANT AND EQUIPMENT:
Land	29,496	39,134
Buildings and infrastructure	5,787,725	5,161,848
Machinery and equipment	5,307,229	5,212,619
Other fixed assets	2,773	858
Revaluation from fixed asset technical appraisal	417,794	435,802
Less: Depreciation	(6,640,467)	(6,278,001)
	__________	__________
Property, plant and equipment, net	4,904,550	4,572,260
	__________	__________
OTHER ASSETS:
Investments in related companies	228,121	213,130
Investments in other companies	13,233	3,050
Long-term receivables	63,635	52,360
Amounts due from related companies	80,887	79,754
Intangibles	3,497	3,889
Less: amortization	(1,006)	(830)
Other assets	218,459	119,158
	__________	_________
Total other assets	606,826	470,511
	__________	_________
TOTAL ASSETS	6,732,965	6,119,638
	=========	========
The accompanying notes 1 to 29 form an integral part of these financial statements.

CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of US$)
	As of December 31,
	2002	2001
CURRENT LIABILITIES:
Short-term debt due to banks and financial institutions	206,275	167,120
Current portion of long-term due to banks and financial institutions	276,806	152,243
Current portion of bonds payable	8,253	3,667
Dividends payable	0	36
Accounts payable	247,970	266,667
Notes payable	703	57
Other payables	20,800	15,844
Amounts due to related companies	20,846	11,067
Provisions	175,301	167,544
Withholdings	46,885	44,209
Income taxes payable	366	46
Deferred income	1,271	3,922
Deferred income taxes	19,196	0
Other current liabilities	3,005	2,269
	____________	___________
Total current liabilities	1,027,677	834,691
	____________	___________
LONG-TERM LIABILITIES:
Due to banks and financial institutions	600,000	875,000
Bonds payable	897,643	300,000
Long-term notes payable	46,787	0
Other payables	0	6,860
Provisions	535,162	533,774
Deferred income taxes	887,372	856,486
Other long-term liabilities	5,691	3,779
	__________	_________
Total long-term liabilities	2,972,655	2,575,899
MINORITY INTEREST	(432)	9,107
EQUITY:	__________	_________
Paid-in capital, no par value	1,524,423	1,524,423
Other reserves	1,237,019	1,226,797
Net income for the year	48,476	25,574
Provisional dividends for fiscal benefit	(76,853)	(76,853)
	_________	_________
Total equity	2,733,065	2,699,941
	_________	_________
TOTAL LIABILITIES AND EQUITY	6,732,965	6,119,638
	========	========
The accompanying notes 1 to 29 form an integral part of these financial statements.

CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands of US$)
	For the years ended
	December 31,
	2002	2001
OPERATING INCOME:
Sales	3,489,879	3,587,564
Cost of sales	(2,786,942)	(2,920,400)
	__________	__________
Gross profit	702,937	667,164
Administrative and selling expenses	(159,676)	(138,131)
Operating income	543,261	529,033
	_________	_________

NON-OPERATING INCOME AND EXPENSE:
Interest income	9,473	10,846
Equity participation in income of related companies	4	104
Other non-operating income	110,116	134,855
Equity participation in losses of related companies	(48,006)	(49,083)
Interest expense	(77,046)	(99,570)
Other non-operating expenses	(442,271)	(402,516)
Price-level restatement	226	707
Foreign currency translation	32,906	27,953
	_________	_________
Non-operating loss	(414,598)	(376,704)
	_________	_________
INCOME BEFORE INCOME TAXES AND MINORITY INTEREST	128,663	152,329

Income taxes	(81,795)	(126,757)
	_________	_________
INCOME BEFORE MINORITY INTEREST	46,868	25,572
	_________	_________
MINORITY INTEREST	1,608	2
	_________	_________
NET INCOME FOR THE YEAR	48,476	25,574
	========	========
The accompanying notes 1 to 29 form an integral part of these financial statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of US$)
	For the years ended
	December 31,
	2002	2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Collections from customers	3,507,351	3,243,478
Interest received	5,395	4,365
Dividends and other distributions	393	4,317
Other income received	377,925	359,333
Payments to suppliers and personnel	(2,555,339)	(2,236,937)
Payment of interest	(70,570)	(98,705)
Payment of income taxes	(80,887)	(2,565)
Other expenses	(273,383)	(261,455)
Payment of value added tax and other similar taxes	(321,993)	(306,674)
	_________	________
Net cash provided by (used in) operating activities	588,892	705,157
	_________	_______
CASH FLOWS FROM FINANCING ACTIVITIES:
Financing obtained	550,258	1,290,416
Bonds payable	597,643	0
Dividends paid	0	(102,409)
Payment of loans	(660,000)	(1,155,000)
Other disbursements for financing	0	(24,197)
	________	________
Net cash provided by (used in) financing activities	487,901	8,810
	________	________
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of fixed assets	542	0
Proceeds from sales of permanent investments	2,552	0
Proceeds from sales of other investments	0	24,073
Other loans received from related companies	0	28,050
Other investing income	29,329	29,756
Additions to property, plant and equipment	(843,981)	(585,754)
Long-term investments	(62,579)	(38,315)
Loans granted to related companies	0	(39,503)
Other investment disbursements	(85,740)	(147,235)
	_________	_________
Net cash provided by (used in) investing activities	(959,877)	(728,928)
	_________	_________

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	116,916	(14,961)

CASH AND CASH EQUIVALENTS BEGINNING OF YEAR	36,663	51,624
	________	________
CASH AND CASH EQUIVALENTS END OF YEAR	153,579	36,663

STATEMENTS OF CASH FLOWS, CONTINUED
RECONCILIATION OF NET CASH FLOWS FROM OPERATING ACTIVITIES TO NET INCOME
(Amounts in thousands of US$)
	For the years ended
	December 31,
	2002	2001
Net income for the year	48,476	25,574

Loss (gain) on sales of fixed assets	11,356	0

Charges (credits) to income which do not represent
Cash flows:
Depreciation	389,699	372,933
Amortization	106,051	84,697
Write-offs and provisions	51,972	278,151
Equity participation on income of related companies	(4)	(104)
Equity participation in losses of related companies	48,006	49,083
Price-level restatement, net	(226)	(707)
Foreign currency translation, net	(32,906)	(27,953)
Other credits to income which do not represent cash flows	(33,921)	(52,816)

Changes in assets which affect cash flows:
(Increase) decrease
Trade receivables	(20,253)	(85,888)
Inventory	14,693	90,436
Other assets	(21,017)	(113,961)

Changes in liabilities which affect cash flows:
Increase (decrease)
Accounts payable associated with operating results	(3,336)	101,371
Interest payable	3,892	(11,952)
Income tax payable, net	320	(3,115)
Value added tax and other similar taxes payable, net	27,698	(590)

Minority interest income (loss)	(1,608)	(2)
	_________	_________
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES	588,892	705,157
	========	========
The accompanying notes 1 to 29 form an integral part of these financial statements.