Contact Information: TMM COMPANY CONTACT: Jacinto Marina Chief Financial Officer 011-525-55-629-8866 ext. 2901 Monica Azar Investor Relations 917-597-5361 or 011-525-55-629-8866 ext. 3421 AT DRESNER CORPORATE SERVICES: Kristine Walczak (investors, analysts, media) 312-726-3600
Grupo TMM Comments on Independent Auditors' Report on Company's Consolidated Financial Statements for Year Ended 2007
| Source: Grupo TMM
MEXICO CITY--(Marketwire - July 18, 2008) - Grupo TMM, S.A.B. (NYSE : TMM ) (BMV: TMM A)
("TMM"), a Mexican intermodal transportation and logistics company,
commented on its Auditors' Report on the Company's Consolidated Financial
Statements for the year ended December 31, 2007, included in its Annual
Report on Form 20-F for the period, filed with the SEC on June 30 of this
year.
The Auditors' Report states that "The continuation of the Company as a
going concern is dependent upon the Company's ability to meet its financing
requirements on a continuing basis, to comply with its present financing
arrangements, and to succeed in its future operations."
However, the Report also stated that "The Company's management has taken
the following steps to improve its operating and financial results:
a) the acquisition of operating assets for the logistics segment, b) the
acquisition of a new fleet of new vessels to replace an aging fleet of
leased vessels, c) an organizational restructuring to reduce administrative
expenses, and d) the commencement of a financing project to replace certain
debt with Trust Certificates having more favorable conditions and interest
rates.
The Company's management believes that its 2008 business plan considers a
significant increase in income and generation of cash from operations.
These increases would be derived from business levels and assets that are
substantially in place as of the end of the Company's fiscal year 2007.
Company's management also believes that the aforementioned will permit the
Company to continue on its positive trend of increasing efficiency and
coverage ratios and realizing its current strategy of creating a healthy
and competitive financial structure for the Company in the medium term."
TMM reported at December 31, 2007, cash provided by operating activities of
$37.2 million, and of $15.6 million in the first quarter of 2008. Cash flow
from operations had not been positive since 2004.
Also, as part of TMM's strategy to grow with the acquisition of profitable
assets with contracted revenues, the Company has completed a Trust
Certificates Program for up to 9.0 billion pesos through three tranches.
This Trust Certificate facility is non-recourse to the Company and is tied
to the useful life of the vessels purchased with the proceeds. The first
and third tranches were rated AA and the second tranche was rated AA- by
Fitch Ratings, reflecting TMM's continued quality operating performance,
increased demand for maritime transportation services and the Mexican
Navigation Law principles.
This Program is the largest placement of long-term debt tied to the useful
life of transportation assets that has been issued in the Mexican Market,
setting a milestone for this kind of transaction in Mexico.
Headquartered in Mexico City, TMM is a Latin American intermodal
transportation Company. Through its branch offices and network of
subsidiary companies, TMM provides a dynamic combination of ocean and land
transportation services. Visit TMM's web site at www.grupotmm.com. The site
offers Spanish/English language options.
Included in this press release are certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such forward-looking statements speak only as of the date they are
made and are based on the beliefs of the Company's management as well as on
assumptions made. Actual results could differ materially from those
included in such forward-looking statements. Readers are cautioned that all
forward-looking statements involve risks and uncertainty. The following
factors could cause actual results to differ materially from such
forward-looking statements: global, US and Mexican economic and social
conditions; the effect of the North American Free Trade Agreement on the
level of
US-Mexico trade; the condition of the world shipping market; the success of
the Company's investment in new businesses; the ability of the Company to
reduce corporate overhead costs and the ability of management to manage
growth and successfully compete in new businesses These risk factors and
additional information are included in the Company's reports on Form 6-K
and 20-F on file with the United States Securities and Exchange Commission.