/raid1/www/Hosts/bankrupt/TCRLA_Public/010228.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                  L A T I N   A M E R I C A

         Wednesday, February 28, 2001, Vol. 2, Issue 41

                           Headlines



A R G E N T I N A

EDENOR: Credit Drops To BBB-, EDF To Take Control
EDENOR: Edesa and Astra Reach Preliminary Agreement On Sale


B R A Z I L

CAEMI: Mitsui To Buy Control, Blocking BHP's Bid
CSN: Profits From Sale Of Shares


C H I L E

ENAMI: To Incorporate Codelco Into Ventanas


M E X I C O

AEROMEXICO: Expands Code-Share Flights With Air France
DAIMLERCHRYSLER: Moody's Lowers Ratings; Outlook Is Stable
DAIMLERCHRYSLER: Reports Full Year, Divisional Results for 2000
DAIMLERCHRYSLER: S&P Lowers Ratings On Turnaround Concerns
DAIMLERCHRYSLER: To Carry On Production, Investment In Mexico
GRUPO IMSA: Expects Savings Of $30M With New B2B Strategy
ICA: Signs Letters Of Intention On New Contracts For Projects
MAXCOM: Announces Q4 2000 and Year-end 2000 Audited Results


     - - - - - - - - - -


=================
A R G E N T I N A
=================

EDENOR: Credit Drops To BBB-, EDF To Take Control
-------------------------------------------------
Standard & Poor's said today that the recent announcement of a
preliminary agreement between Endesa Internacional S.A., a
subsidiary of Endesa Spain; Astra CAPSA, a subsidiary of Repsol-
YPF S.A.; and EDF International, a subsidiary of Electricite de
France (EDF), will not affect Empresa Distribuidora y
Comercializadora Norte S.A.'s (EDENOR) current rating or negative
outlook.

The preliminary agreement states that EDF will take control of
EDENOR through the acquisition of Endesa Internacional's and
Astra CAPSA's respective direct and indirect ownership stakes in
EDENOR.

Edenor is the largest electric distribution company in Argentina
in terms of customers served and sales volume. The company has
had a 95-year exclusive concession since September 1992 to
distribute electricity in the northwestern half of the greater
Buenos Aires area and the northern portion of the city of Buenos
Aires.---CreditWire


EDENOR: Edesa and Astra Reach Preliminary Agreement On Sale
-----------------------------------------------------------
Endesa Internacional, S.A., Endesa's (NYSE:ELE) subsidiary, and
Astra C.A.P.S.A., Repsol-YPF's (NYSE:REP) subsidiary, on one
hand, and EDF International, Electricite de France's subsidiary,
on the other, announce that they have reached a preliminary
agreement for the sale of the direct and indirect interests that
the first two companies hold in Empresa Distribuidora y
Comercializadora Norte Sociedad Anonima (Edenor S.A.),
distributor of electricity in the North of Buenos Aires and its
surroundings, to EDF International.

The preliminary agreement establishes the opening of a 30-days
negotiation period, in which the terms of a final agreement will
be analysed. In the same way, the preliminary agreement is
subject to certain conditions including the approval of the
transaction by the three companies' Board of Directors and by the
Government authorities in France and Argentina.

In addition, Endesa points out, that should this transaction be
sucessfully completed, it would comply with what was established
by the Argentinian Secretary of State for the Defence of
Competition and the Consumers and with the Resolution no.
480/2000 from August 10th, from the Ente Nacional Regulador de la
Electricidad (ENRE).


===========
B R A Z I L
===========

CAEMI: Mitsui To Buy Control, Blocking BHP's Bid
------------------------------------------------
Mitsui & Co., Japan's largest trading company, said it will buy
the shares in Brazilian iron ore miner Caemi Mineracao e
Metalurgica SA it doesn't already own, according to a Bloomberg
report Monday edition. The Japanese company will reportedly use
its pre-emptive right to acquire 60 percent of the voting shares
in Caemi from Mario and Guilherme Frering, blocking a $332
million bid by Australia's BHP Ltd. for Brazil's second-largest
iron ore company. Mitsui reportedly would rather take on the
Frering stake itself and then cut Brazil's CVRD into a broader
deal under which the two of them split ownership of Caemi,
leaving BHP out in the cold.


CSN: Profits From Sale Of Shares
--------------------------------
Companhia Siderurgica Nacional (CSN) revealed that it made a net
profit of R$275 million from the sale of shares in the Rio de
Janeiro power utility Light, Business News Americas said in a
report Monday. Additionally, the company anticipates a R$900-
million gain from the sale of its stake in Valepar, the holding
company of mining giant CVRD. According to a TCR-LA report
released early this week, Bradespar and Previ will acquire the
equity of CSN in Valepar after Valepar's minority shareholders
decided against exercising their right of first refusal to
acquire the position.



=========
C H I L E
=========

ENAMI: To Incorporate Codelco Into Ventanas
-------------------------------------------
Ventanas union leader Manuel Hernandez, who spoke on behalf of
the whole union, said that Ventanas copper smelter and refinery
must stay in state hands, according to a report in a Business
News Americas released Monday. The union's resistance to bringing
in a private company to help expand Ventanas reportedly motivated
the move. Enami now plans to incorporate Chile's state copper
corporation Codelco into its smelting business. Enami, a state
minerals processing company, controls the Ventanas plant. It is
looking for a partner to help in the expansion of the plant to
process 800,000tpy copper concentrates from the present
400,000tpy, and Codelco will have an excess of concentrates from
2003. Rather than export copper concentrates, the company prefers
to ship higher added value cathodes from Chile. The contemplated
expansion will reportedly require US$250-300 million in new
investment.



===========
M E X I C O
===========

AEROMEXICO: Expands Code-Share Flights With Air France
------------------------------------------------------
AeroMexico, Mexico's largest airline, has added three new
European destinations -- London, Rome and Barcelona -- and 96
weekly code-share flights from Paris with SkyTeam partner Air
France. AeroMexico already serves Amsterdam, Frankfurt, Madrid,
Paris and Zurich.

"AeroMexico has served Paris and Madrid for more than a decade,"
said Jose Manuel Diaz de Rivera, AeroMexico's Chief Marketing
Officer. "Since the SkyTeam launch last year, we have steadily
expanded our presence in Europe with Air France code-share
service. We are committed to offering our customers the best in
travel convenience as we capitalize on the existing route
networks of our SkyTeam partners. Our new expanded routes,
coupled with AeroMexico's signature service, will greatly enhance
our passengers' ease in visiting Europe."

AeroMexico's new code-share service includes four daily
connecting flights between Charles de Gaulle Airport (CDG) in
Paris and Barcelona; five daily connecting flights between CDG
and Rome; four daily connecting flights between Paris and
London's Heathrow Airport; and one additional connecting flight
between CDG and Heathrow operating Monday through Friday.


DAIMLERCHRYSLER: Moody's Lowers Ratings; Outlook Is Stable
----------------------------------------------------------

Approximately $70 Billion of Debt Securities Affected.

Moody's Investors Service downgraded the long-term and short-term
ratings of DaimlerChrysler AG (DCX), DaimlerChrysler North
America Holdings Corporation (DCNAH), and their supported
subsidiaries; the senior unsecured long-term rating was lowered
to A3 from A2, and the short-term rating was lowered to Prime-2
from Prime-1. The rating outlook is stable.

The downgrade reflects Moody's expectation that the intermediate-
term debt protection measures of DCX, and the competitive
position of its Chrysler operations will be considerably weaker
than historic levels despite the benefits likely to result from
the company's extensive restructuring program. We anticipate that
the plan will achieve sizable cost reductions, and will help the
company to reposition its product line up in a positive manner
over the longer term. However, Chrysler's 2001 euro 2.2 to 2.6
billion operating loss, its euro 3.0 billion restructuring
charge, and its large borrowing requirements, will result in
DCX's debt protection measures remaining weak for the A3 rating
level into 2002. Moreover, the softening in the U.S. automotive
market, in combination with a more intense competitive
environment in Chrysler's key SUV, minivan, and light truck
markets, will seriously challenge DCX's ability to realize the
full extent of the cost reduction, revenue enhancement, and cash
generation objectives embodied in the plan. As DCX attempts to
undertake the restructuring of Chrysler, it will also have to
contend with the worsening operational problems, weakening brand
image and mounting financial difficulties of its 34%-owned
affiliate Mitsubishi Motors, and with the deteriorating
conditions in the North American heavy truck market.

The stable outlook anticipates that DCX will achieve an adequate
degree of success in implementing its restructuring plan, and
that the resulting debt protection measures will become more
supportive of the A3 rating during 2002. However, due to the
considerable challenges that must be addressed, Moody's will
regularly reassess the progress that DCX is making in achieving
its restructuring objectives over the next twelve months. Steady
progress during this period will be necessary in order to sustain
the stable outlook.

As DCX attempts to restructure Chrysler's operations, we expect
that it will continue to benefit from the strong operating
performance and broad global diversification of its Mercedes-Benz
franchise, and the solid returns from its European truck
operations. Moreover, despite intermediate-term weakening in
overall debt protection measures, DCX will benefit from the
flexibility afforded by the euro 21.0 billion in unused committed
bank credit facilities, the euro 5.8 billion market value of its
approximately 30% ownership in EADS, and the approximately euro
4.6 billion in proceeds it will receive during early 2002 in
connection with the disposition of its IT Services business.

During 2001, DCX expects that Chrysler's operating loss will
approximate euro 2.2 to 2.6 billion. In addition the
restructuring program will require a one-time charge of euro 3.0
billion in 2001, and the possibility of additional charges
totaling up to euro 1.0 billion for the period 2002 to 2003.
These charges will relate to asset write-downs, the closing of 6
facilities, and the elimination of 26,000 salaried and hourly
employees. The cash costs associated with the euro 3.0 billion
charge in 2001 will be euro 1.0 billion. The cash cost associated
with the potential additional charge of euro 1.0 billion for the
2002 to 2003 period would be approximately euro 700 million. In
contrast with these cash costs, DCX expects that over the next
three years it will generate annual savings of approximately euro
2.0 billion per year, and annual revenue enhancements that will
average about euro 700 million per year.

A major component of the cost saving initiatives relate to
employment reductions at Chrysler. We expect that the company
will be successful in achieving employment-related savings that
are close to its targeted levels. Another significant component
of the cost reduction initiatives are expected to come from
Chrysler's attempt to obtain 5% price reductions from its
suppliers during 2001, and an additional 10% over the next two
years. DCX expects that these annual material-related savings
will be euro 1.0 billion in 2001, an additional euro 1.3 billion
in 2002, and a further euro 1.6 billion in 2003. Although we
expect Chrysler to make a meaningful degree of progress in
reducing its material costs, the strained financial condition and
narrow operating margins of most suppliers will make it difficult
to achieve the full amount of expected cost reductions in this
area. Moody's also expects that the increasingly challenging
competitive environment in the U.S. automotive market will
constrain DCX's ability to achieve the targeted level of annual
revenue enhancement. To achieve its revenue enhancement targets,
DCX would have to effectively reposition Chrysler's product line,
defend its market share position, and generate adequate margins
in the face of a softening U.S. automotive market, and
intensifying competition from Japanese and European manufacturers
in the critical SUV, minivan and light truck segments.

As a result of Chrysler's operating losses and restructuring
charges, there will be considerable near-term stress on the
financial flexibility and debt protection measures of DCX's
industrial operations. During 2001 fixed charge coverage
(adjusted for the non-cash component of the restructuring
charges) will be below 1 times, industrial cash flow requirements
after capital expenditures and dividends could exceed euro 4.0
billion, and, as a result of the cash requirements of Chrysler
and initiatives needed to strengthen the capitalization of debis,
industrial borrowings could rise from euro 9.5 billion to over
euro 16.0 billion. Consequently, the company's net liquidity
position will be in the area of a negative euro 5.0 billion at
the end of 2001. During early 2002 debt protection measures will
strengthen due to the sale of DCX's IT Services holdings to
Deutsche Telekom. However, earnings, cash generation, and debt
servicing capability from ongoing operations, will likely remain
modest for the A3 rating level.

Moody's expects that DCX's planned contribution of euro 2.5
billion in equity capital to debis will enable its financial
services operation to become more appropriately leveraged
relative to its peers. Moreover, the company's euro 500 million
charge during 2000 should cushion the company against lower
residual values on the existing portfolio. Nevertheless, we will
continue to closely monitor the level of risk posed by debis'
large portfolio of automobile leases and commercial vehicle
receivables.

Ratings lowered are:

DaimlerChrysler AG: senior debt to A3 from A2 and subordinated
debt to Baa1 from A3.

DaimlerChrysler North America Holdings Corporation: senior debt
to A3 from A2, and short-term rating to Prime-2 from Prime-1;

DaimlerChrysler Australia/Pacific Pty. Ltd.: senior debt to A3
from A2;

DaimlerChrysler Canada Finance Inc.: senior debt to A3 from A2;

DaimlerChrysler Coordination Center S.A.: senior debt to A3 from
A2, and short-term rating to Prime-2 from Prime-1;

DaimlerChrysler International Finance B.V.: senior debt to A3
from A2;

DaimlerChrysler Japan Holdings: senior debt to A3 from A2;

DaimlerChrysler Luxumbourg Capital S.A.: senior debt to A3 from
A2;

DaimlerChrysler Luxembourg Finanz S.A.: senior debt to A3 from
A2;

DaimlerChrysler U.K. Holdings Plc.: senior debt to A3 from A2,
and short-term rating to Prime-2 from Prime-1;

Chrysler Corporation: senior debt to A3 from A2;

Auburn Hills Trust: senior debt to A3 from A2;

DaimlerChrysler AG, with dual headquarters in Stuttgart, Germany
and Auburn Hills, Michigan, is the fifth largest automobile
company as measured by unit volume.


DAIMLERCHRYSLER: Reports Full Year, Divisional Results for 2000
---------------------------------------------------------------
- Group Operating Profit down 11% to 9.8 billion euros ($9.2
billion); excluding one-time effects a decline of 49% to 5.2
billion euros ($4.9 billion)

- Record Operating Profit (without one-time effects) of 2.9
billion euros ($2.7 billion) at Mercedes-Benz Passenger Cars and
smart in 2000

- Commercial Vehicles Operating Profit up 8% to 1.2 billion euros
($1.1 billion) in 2000

- Chrysler Group Operating Profit down by 90% to 0.5 billion
euros ($0.5 billion)

- DaimlerChrysler Services Operating Profit declined 38% to 0.6
billion euros ($0.6 billion) (adjusted for one-time effects).

DaimlerChrysler AG (stock symbol DCX) announced today full year
figures for 2000, including the performance of its operating
divisions.

Details of the Turnaround Plan for the Chrysler Group will be
announced later this morning in a separate release.

DaimlerChrysler Group

In 2000, Revenues increased 8% to a record 162.4 billion euros
($152.4 billion) (1999: 150 billion euros), on a comparable basis
Revenues increased by 12%.

Operating Profit was hit by Second Half losses in North America.
Including one-time effects, Operating Profit fell by 11% to 9.8
billion euros ($9.2 billion) (1999: 11.0 billion euros). Net
income rose 37% to 7.9 billion euros ($7.4 billion) (1999: 5.7
billion euros) and EPS increased from 5.73 euros to 7.87 euros
($7.39), due mainly to a lower tax burden. Excluding one-time
effects, which had a net positive effect of 4.5 billion euros
($4.3 billion), Operating Profit declined by 49% to 5.2 billion
euros ($4.9 billion) (1999: 10.3 billion euros). Net income
declined by 44% to 3.5 billion euros ($3.3 billion), with EPS of
3.47 euros ($3.26), down from 6.21 euros.

Dividend

The Board of Management and the Supervisory Board will recommend
at the Annual Meeting on April 11, 2001 in Berlin, an unchanged
dividend of 2.35 euros ($2.21) per share.

Mercedes-Benz Passenger Cars and smart

Mercedes-Benz Passenger Cars and smart had another record year.
Worldwide sales increased by 7% to 1,154,900 units (1999:
1,080,300). Revenues rose from 38.1 billion euros in 1999 to 43.7
billion euros ($41.0 billion), an increase of 15%. Operating
Profit adjusted for one-time effects was 2.9 billion euros ($2.7
billion) (1999: 2.7 billion euros), up 6%.

The division increased its share of the German market, despite a
declining market trend. For the first time, more than 200,000
Mercedes-Benz vehicles were sold in the U.S.

The new C-Class with sales of 147,900 was extremely well
received, as were the M-Class and the S-Class. The S-Class sedan
was again the leader in its segment with a worldwide market share
of 53%. Sales of the smart totaled 102,100 (1999: 79,900).

Chrysler Group

The Chrysler Group had an extremely difficult year in 2000 and is
in the midst of a wide-ranging Turnaround Plan. Unit Sales
declined slightly to 3.0 million vehicles (1999: 3.2 million).
Revenues were up 7% to 68.4 billion euros ($64.2 billion) (1999:
64.1 billion euros), due mainly to the strength of the US dollar
against the euro. Measured in US dollars, Chrysler Group's
revenue fell by 8%. Operating Profit went down by 90% to 0.5
billion euros ($0.5 billion) (1999: 5.2 billion euros) as a
result of losses incurred in the second half of the year due to a
combination of intense competition in the US, higher spending on
incentives and costs associated with new model launches.

Commercial Vehicles

Although Unit Sales of Commercial Vehicles declined slightly from
554,900 in 1999 to 549,000 in 2000, revenues increased by 8% to
28.8 billion euros ($27.1 billion) (1999: 26.7 billion euros).
Operating Profit rose from 1.1 billion euros ($1.1 billion) to
1.2 billion euros despite a significant slowdown in the second
half at Freightliner in the US. On the other hand, truck markets
in Brazil and Turkey recovered.

Commercial Vehicles launched a number of new models in 2000
including the heavy duty Actros SLT, the Unimog module carrier
U500, the Medio minibus, the OC500 bus chassis, and a redesigned
Sprinter van. Two significant acquisitions were made: Western
Star, the Canadian premium manufacturer of heavy trucks and its
bus brand Orion; and Detroit Diesel, one of the world's leading
manufacturers of heavy-duty diesel engines for on-highway
applications.

DaimlerChrysler Services

To reflect a sharper focus on financial services along the
automotive chain, the division's name has been changed from debis
to DaimlerChrysler Services AG.

In 2000, Revenues grew strongly rising 36% to 17.5 billion euros
($16.5 billion) (1999: 12.9 billion euros). However, Operating
Profit (adjusted for one-time effects) declined 38% from 1.0
billion euros to 0.6 billion euros ($0.6 billion), particularly
as in the second half of 2000, growing pressures and rising
interest rates led to more intensive competition in financial
services and a significant decline in earnings in the US. The
one-time effects were caused, on the one hand, by a gain of 2.3
billion euros ($2.2 billion) from the disposal of a controlling
interest in debis Systemhaus. On the other hand falling used-car
prices -- especially in the US -- led to a value adjustment of
leased vehicles by 0.5 billion euros ($0.5 billion).

Aerospace

Last July, DaimlerChrysler Aerospace (Dasa), France's
Aerospatiale Matra and Spain's Casa merged to form the European
Aeronautic Defence and Space Company (EADS). It is the largest
aerospace company in Europe and the third largest in the world.

EADS enjoyed a successful Initial Public Offering (IPO) on the
stock market and DaimlerChrysler became the largest shareholder
with a stake of approximately 33%. It resulted in a one-time gain
in Operating Profit of 3.3 billion euros ($3.1 billion).

As a result of the changes in ownership, Dasa has only been
included in DaimlerChrysler's consolidated financial statements
for the first half of 2000. Since July 1, 2000 EADS is included
at equity, in proportion to the stake held in EADS by
DaimlerChrysler.

Due to consolidation effects, Revenues of EADS declined 41% to
5.4 billion euros ($5.1 billion) in 2000, while Operating Profit
fell 38% to 0.5 billion euros ($0.4 billion) (1999: 0.7 billion
euros).

Other Industrial Businesses

In 2000, the sale of Adtranz, DaimlerChrysler rail systems unit,
to Bombardier was agreed, subject to approval by EU regulators.
In 2000, Adtranz Revenues rose 9% to 3.9 billion euros ($3.7
billion) (1999: 3.6 billion euros), incoming orders were up 24%
to 4.1 billion euros ($3.8 billion), and break-even was achieved.

Automotive Electronics (TEMIC) had a good year with a 20% growth
in Revenues to 1.1 billion euros ($1.0 billion) (1999: 0.9
billion euros). Incoming orders were up 13% to 1.2 billion euros
($1.1 billion).

MTU/Diesel Engines increased Revenues by 8% to 1.0 billion euros
($1.0 billion), primarily in commercial applications for ships
and distributed power systems.


DAIMLERCHRYSLER: S&P Lowers Ratings On Turnaround Concerns
---------------------------------------------------------------
Standard & Poor's today lowered its ratings on DaimlerChrysler AG
and various related entities (see list below). The current
outlook is negative.

The downgrade primarily reflects Standard & Poor's heightened
concerns about the timing and extent of a turnaround in financial
performance at DaimlerChrysler's key Chrysler Division. In
response to massive net losses at Chrysler, which totaled
approximately $2.0 billion during the second half of 2000,
DaimlerChrysler has initiated extensive restructuring efforts.
Standard & Poor's expects management's cost cutting targets to be
at least largely achieved, notwithstanding resistance to demands
for concessions from suppliers and dealers, and the constraints
to downsizing of the workforce posed by existing labor contracts.
However, DaimlerChrysler's ability to retain the benefits is
uncertain. Even with steep price discounts, Chrysler's sales
performance has proven to be particularly vulnerable to a
cyclical weakening of demand in the North American automotive
industry. The merger of Chrysler Corp. and DaimlerChrysler AG--
completed in late 1998--and the attendant management turmoil
evidently are playing some role in tarnishing Chrysler's market
image. Moreover, Standard & Poor's expects that the next few
years could bring by an intensification of competition across
Chrysler's core product segments--sport utilities, pickups, and
minivans--as other automakers introduce new products in these
segments and as secular demand growth moderates. Chrysler is
likely to incur large additional losses for at least the next
several quarters -- even excluding a restructuring charge of
approximately ?3.0 billion to be recorded this quarter.

DaimlerChrysler faces other challenges as well. Its North
American heavy truck unit, Freightliner, reportedly is awash in
used vehicle inventory, which will likely exacerbate the impact
of a severe cyclical downturn in demand. And Mitsubishi Motors
Corp., in which DaimlerCrysler obtained a 34% ownership stake
last year, continues to generate losses, with its sales
performance in Japan suffering from the recent scandal regarding
its past failure to disclose product defects.

Even with a planned reduction in capital spending, significant
further deterioration in DaimlerChrysler's liquidity is likely
this year, owing in part to negative operating cash flow at
Chrysler and the recent decision to maintain the common dividend.
Still, financial flexibility is expected to remain adequate in
light of the company's access to committed bank credit facilities
and to the term debt and asset-backed securitization markets,
plus the planned monetization next year of the company's stake in
the IT Services joint venture with Deutsche Telecomm. Management
has significantly reduced reliance on commercial paper borrowings
in recent months, and Standard & Poor's does not expect
DaimlerChrysler's loss of access to the 'A-1' commercial paper
market to cause liquidity problems.

OUTLOOK: NEGATIVE

Another downgrade is possible absent signs of a turnaround at
Chrysler within the next couple of years, or should the company's
liquidity position deteriorate more than currently anticipated by
Standard & Poor's.


DAIMLERCHRYSLER: To Carry On Production, Investment In Mexico
-------------------------------------------------------------
Struggling automaker DaimlerChrysler continues to move forward
with production and investment plans in Mexico despite its
announcement in early February to reduce its workforce worldwide,
El Economista/Infolatina said Monday. The Mexican subsidiary,
which is headed by Miles Bryant, revealed plans earlier this
month to cut its workforce by 2,600. The move is part of a
massive, worldwide restructuring effort that will see a 20-
percent reduction in DaimlerChrysler's U.S. workforce and a 15-
percent cut in U.S. output.


GRUPO IMSA: Expects Savings Of $30M With New B2B Strategy
---------------------------------------------------------
Monterrey-based Grupo Imsa expects to save about $30 million
annually beginning next year as it embarks on new business-to-
business strategies aimed at reducing logistical costs in areas
such as sales and client services, Reuters said Monday.

"We are only following-up on projects that give us clear savings
in terms of costs and services," Jose Clariond, director of
IMSA's business-to-business (B2B) strategy, said in an interview.

The Mexican steelmaker posted operating profit of 353 million
pesos (about $34 million) in the fourth quarter of 2000, about 57
percent less than the 827 million pesos in the same period in the
previous year. Operating margins were affected by a drop in
international steel prices.


ICA: Signs Letters Of Intention On New Contracts For Projects
-------------------------------------------------------------
Mexican construction company ICA has signed letters of intention
on new contracts for projects worth a combined $300 million,
Carmen Slade of Salomon Smith Barney (SSB) announced in a
Reforma/Infolatina report Monday edition. ICA management will not
release further details regarding the new contracts until late
March, however, it revealed that most of the new projects are in
the energy sector. According to Slade, SSB does not intend to
revise upward its forecasts for ICA sales this year on the basis
of the news. The company's fourth-quarter results likely will be
weak, with sales down 6 percent from the year-ago period, Slade
said, adding that its fourth-quarter EBITDA likely will be down
14 percent from the third quarter.


MAXCOM: Announces Q4 2000 and Year-end 2000 Audited Results
-----------------------------------------------------------
Maxcom Telecomunicaciones, S.A. de C.V., a facilities-based
telecommunications provider (CLEC) using a "smart build" approach
to focus on small- and medium-sized businesses and high-end
residential customers in Mexico City and Puebla, today announced
its results for the fourth quarter of 2000 and audited results
for the year-end 2000.

REVENUES

Revenues for 4Q2000 were Ps$71.5 million as compared to Ps$81.4
million for 3Q2000, a decrease of 12%.

The continued effort to focus on profitability and the effect of
traffic and tariffs management originated a 50% reduction in the
long distance traffic and therefore fewer revenues from the long
distance business, where the Company carries the lowest margins.

Revenues for the year 2000 were Ps$266.1 million and evolved as
shown below.

PS$ million       1Q2000      2Q2000        3Q2000       4Q2000
                  ------      ------        ------       ------
Revenues            50.5        62.7          81.4         71.5

Maxcom commenced commercial operations on May 1, 1999; therefore
a comparison with the fourth quarter of 1999 is not meaningful.
In some cases throughout this document, references will be made
to the three-month period ended on September 30, 2000. Financial
statements are reported in period-end pesos as of December 31,
2000 to adjust for the inter-period effect of inflation.

LINES

During 4Q2000 7,856 new lines were installed compared to 4,803
lines installed during 3Q2000, representing a 64% increase
quarter over quarter. During 4Q2000 4,670 lines were
disconnected. The net number of lines as of December 31, 2000
increased 13% to 26,910, when compared to 23,724 lines as of
September 30, 2000.

During year 2000, (1) a total of 27,983 lines were installed, and
(2) a total of 18,506 lines were disconnected. Backlog as of
December 31, 2000 was 6,445 lines.

The breakdown of lines follows:

              LINES                        3Q2000   4Q2000   %
MEXICO CITY
TRONCALMAX BIDIRECTIONAL & ISDN           6,990    5,708  -18%
TRONCALMAX INBOUND                        5,250    3,780  -28%
OTHER BUSINESS LINES                      3,743    4,682   25%
   TOTAL                                  15,983   14,170  -11%

RESIDENTIAL LINES                         1,554    2,750   77%
PUEBLA
TRONCALMAX BIDIRECTIONAL & ISDN             270      396   47%
TRONCALMAX INBOUND                          870      780  -10%
OTHER BUSINESS LINES                      1,518    2,236   47%
   TOTAL                                   2,658    3,412   28%

RESIDENTIAL LINES                         3,538    6,578   86%
   TOTAL INSTALLED                        23,733   26,910   13%

CUSTOMERS

    Total customers grew by 87% in 4Q2000, as detailed
below:

CUSTOMERS                                3Q2000   4Q2000    %

       BUSINESS                            1,004    2,192   118%
       RESIDENTIAL                         5,011    9,072    81%
   TOTAL INSTALLED                         6,015   11,264    87%
       MEXICO CITY                         1,852    3,576    93%
       PUEBLA                              4,163    7,688    85%

TRAFFIC

    Network traffic for the year 2000 is detailed below:

Million Minutes  Jan   Feb   Mar   1Q    Apr    May    Jun    2Q

INBOUND         15.5  22.2  66.5 104.2  85.1  110.2  115.2  310.5
OUTBOUND        24.9  22.0  27.4  74.3  32.8   33.4   32.8   99.0

OUTBOUND LOCAL   76%   77%   76%  76%   77%    81%    80%    80%
OUTBOUND LD      24%   23%   24%  24%   23%    19%    20%    20%

Million Minutes Jul  Aug  Sep    3Q    Oct    Nov    Dec    4Q

INBOUND       99.2  88.6  80.3  268.0  90.2   85.9   75.6  251.7
OUTBOUND      37.8  42.1  43.6  123.5  47.8   51.3   51.9  151.0

OUTBOUND LOCAL  84%   82%   83%    83%   90%    95%    95%    93%
OUTBOUND LD     16%   18%   17%    17%   10%     5%     5%     7%


Traffic management efforts continued to show positive results
quarter over quarter:

Inbound traffic decreased by 6%

-- Outbound traffic increased by 22%

-- Local outbound traffic increased by 38%

Monthly comparison (June vs. December) provides a better
representation of the traffic pattern change:

-- Inbound traffic decreased by 34%

-- Outbound traffic increased by 58%

-- Local outbound traffic increased by 86%

Interconnection links with Telmex totaled 593 as of December 31,
2000, an increase of 48% increase quarter over quarter, and an
increase of 206% from the 194 links at year-end 1999.

ARPUs

Average Revenues Per Line figures in US dollars are detailed
below:


                                 1Q2000  2Q2000  3Q2000 4Q2000

Troncalmax Bidirectional / ISDN
Monthly Charges                   17      18      33      79
Usage                             96     101     195     163
                                  ---------------------------
Total                            113     119     228     242
Non-recurring                      1       1      12       2
                                  ---------------------------
Total                            114     120     240     245
                                                        
Troncalmax Inbound                                      
Monthly Charges                    9      18      34      59
Usage                              0       0       7       9
                                  ---------------------------
Total                              9      18      41      67
Non-recurring                      3       3       0       0
                                  ---------------------------
Total                             11      21      41      67
                                                        
Other Business Lines                                    
Monthly Charges                   20      21      18      18
Usage                             22      27      35      34
                                   --------------------------
Total                             42      48      53      52
Non-recurring                     23      10       6       4
                                   --------------------------
Total                             65      57      59      56
                                                        
Residential Lines                                       
Monthly Charges                   15      18      17      15
Usage                             11      13      15      12
                                   --------------------------
Total                             27      31      32      27
Non-recurring                      9       6      17       3
                                   --------------------------
Total                             36      37      49      31
                                                        
Business Average                  83      77     129     143
Residential Average               36      37      50      31
Company Average                   79      75     117     109

COST OF NETWORK SERVICES

Cost of Network Services is comprised of (1) reselling costs; (2)
leased dedicated circuits' costs; and, (3) interconnection costs
to carriers other than Telmex.

Cost of Network Services for year 2000 evolved as show below:

PS$ million         1Q2000      2Q2000      3Q2000       4Q2000
                    ------      ------      ------       ------
Reselling costs       17.1        19.8        16.8          8.2
Leased circuits        8.4        10.8        11.9          2.1
Interconnection        4.9       (0.1)         3.2          4.6
TOTAL                 30.4        30.5        32.0         14.8
                     ======      ======      ======       ======

Cost of Network Services for 4Q2000 was Ps$14.8 million, or 21%
of Revenues when compared to Ps$32.0 million, or 39% of Revenues
for 3Q2000.

This improvement on the cost was a combination of the following:

-- A 51% decrease in reselling costs given the reduction on the
long distance traffic

-- A 82% decrease in leased dedicated circuits' costs originated
by:

-- Permanent savings for moving Maxcom's POPS to the recently FO
metropolitan ring acquired from Metronet

-- One time savings for discounts granted by Metronet during
4Q2000

-- A 41% increase in interconnection costs to carriers other than
Telmex

Cost of Network Services for the year 2000 was Ps$107.8 million,
or 41% of Revenues.

GROSS PROFIT

In 4Q2000, the Company produced 12% less Revenue than in 3Q2000
with 53% lower costs compared to the previous quarter.

This performance was reflected in a 15% increase on the Gross
Profit, to Ps$56.6 million in 4Q2000 when compared to Ps$49.4
million in 3Q2000.

Gross Profit for the year 2000 was Ps$158.3 million.

As a consequence, the Gross Margin for 4Q2000 was 79%.
Gross Margin for year 2000 evolved as shown below:

          1Q2000         2Q2000         3Q2000         4Q2000
          ------         ------         ------         ------
             40%            51%            61%            79%


Gross Margin for the year 2000 was 59%.

SG&A

Selling, General and Administrative expenses for 4Q2000 were
Ps$88.2 million, when compared to Ps$94.4 million for 3Q2000, a
decrease of 7%.
Recurring Salaries, Wages and Benefits for 4Q2000 were Ps$45.6
million as compared to Ps$40.0 million for 3Q2000. However, net
Salaries, Wages and Benefits decreased from Ps$53.5 million to
Ps$33.2 million primarily due to adjustments of provisions made
along the year to actual year-end figures. As of December 31st
employee headcount was 457 compared to 402 employees as of
September 30th.

Marketing Expenses for 4Q2000 were Ps$3.8 million as compared to
Ps$2.4 million for 3Q2000, an increase of 58%, as the Company
implemented new marketing strategies and branding campaigns.

Consulting Fees for 4Q2000 were Ps$22.5 million as compared to
Ps$19.4 million for 3Q2000, an increase of 16%.

The Company provisioned Ps$5.3 million for Bad Debt Reserve on
4Q2000. Bad Debt Reserve for the year 2000 accounted for 3.7% of
the total Revenues.
SG&A for the year 2000 were Ps$331.2 million.

EBITDA

Negative EBITDA for 4Q2000 was Ps$31.5 million as compared to
negative EBITDA of Ps$45.0 million for 3Q2000.

Negative EBITDA for the year 2000 was Ps$172.9 million and
evolved as shown below.

PS$ million        1Q2000     2Q2000       3Q2000       4Q2000
                   ------     ------       ------       ------
EBITDA             (45.4)     (51.0)       (45.0)       (31.5)


DEPRECIATION & AMORTIZATION

Depreciation and Amortization cost for 4Q2000 was Ps$54.9 million
as compared to Ps$51.8 million for 3Q2000. The variation reflects
an increase in value of fixed assets.

Depreciation and Amortization cost for the year 2000 was Ps$201.0
million.

COMPREHENSIVE COST OF FINANCING

Comprehensive Cost of Financing for 4Q2000 was Ps$84.9 million as
compared to negative Ps$40.1 million (income) for 3Q2000.

Line Item                        1Q2000   2Q2000   3Q2000 4Q2000
                                          PS$ million
1. Interest Expense                60.0    117.8    99.0   123.3
2. Interest Income                  6.2)   (29.7)  (32.2)  (29.9)
3. Exchange Loss (Income)         (29.6)   100.1   (85.2)   25.4
4. Gain on Net Monetary Position  (18.6)   (15.8)  (21.7)  (34.0)
                                  -----    -----   -----   -----
       TOTAL                        5.6    172.3   (40.1)   84.8
                                  =====    =====   =====   =====

Notes: Variation
1. This line reflects both (a) interest accrued and (b)
withholding taxes on interests of the Senior Notes. 4Q2000 shows
withholding taxes for both 3Q2000 and 4Q2000. Effective January
2001, withholding taxes will be provisioned on a monthly basis
rather that booking them on interest payment date.

2. Difference in this line was originated by a lower cash
position during 4Q2000.

3. This line reflects the effect of the devaluation of the
Mexican Peso. Difference in this line was consequence of the
significant volatility in the exchange rate that moved from
Ps$9.9538 at the end of June 2000, to Ps$9.4290 at the end of
September 2000, to Ps$9.6200 at the end of December 2000.

4. This line reflects the effect of the rate of inflation of the
Mexican Peso on the Monetary Position of the Company.
Comprehensive Cost of Financing for the year 2000 was Ps$222.6
million.

NET LOSS

Net Loss for 4Q2000 was Ps$172.2 million as compared to Ps$57.0
million for 3Q2000.

This Net Loss is attributable to negative EBITDA of Ps$31.5
million (3Q: negative Ps$45.0 million), Depreciation and
Amortization cost of Ps$54.9 million (3Q: Ps$51.8 million) and a
Comprehensive Cost of Financing of Ps$84.9 million (3Q: negative
Ps$40.1 million (income)).
Net Loss for the year 2000 was Ps$597.0 million for the reasons
stated above.

CAPITAL EXPENDITURES

Capital Expenditures for 4Q2000 were Ps$104.4 and Ps$476.7
million for the year 2000.

Capital expenditures per quarter evolved as follows:

PS$ million          1Q2000      2Q2000      3Q2000     4Q2000
                     ------      ------      ------     ------
CAPEX                 239.6       143.2      (10.5)      104.4


CASH POSITION

Maxcom's Cash position at the end of 4Q2000 was Ps$1,072.3
million in Cash and Cash Equivalents, and Ps$568.9 million in
Restricted Cash which is deposited into an escrow account to
guarantee debt service until April 2002 for the US$300 million
13.75% senior notes due 2007. This compares to Ps$1,187.9 million
in Cash and Cash Equivalents, and Ps$780.3 million in Restricted
Cash in the escrow account at the end of 3Q2000.



S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Janice Mendoza, Editors.

Copyright 2001.  All rights reserved.  ISSN 1529-2746.

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