March 13, 2002 – Santiago, Chile.
Quiñenco S.A. (LQ:NYSE) reported today to the Chilean Superintendency of Securities and Insurance (SVS) the effects of the Argentine crisis on its financial results as of December 31, 2001.
Quiñenco, as a holding company, is exposed to the continuing economic crisis and currency devaluation in Argentina through its 56.1%-owned subsidiary, Madeco S.A. (Madeco) and its 30.8%-owned subsidiary, Compañía Cervecerías Unidas S.A. (CCU).
In the case of Madeco, the company has reported that it expects losses in connection with its business in Argentina of Ch$17,780 million (US$27.2 million), to be included in results for the twelve months ended December 31, 2001. The loss corresponding to Quiñenco’s participation in Madeco of 56.1% is approximately Ch$9,975 million (US$15.2 million).
CCU reported in its consolidated financial statements for the same period losses amounting to Ch$1,806 million (US$2.8 million) in relation to its operations in Argentina. The loss corresponding to Quiñenco’s participation in CCU of 30.8% is approximately Ch$556 million (US$850 thousand).
Quiñenco, in its capacity as holding company and reporting entity for its investments in Madeco and CCU, will include the aforementioned losses in its financial statements for the period ended December 31, 2001. Owing to the severity and prolongation of the Argentine crisis, further effects on the financial results of subsidiaries with operations in that country cannot be ruled out.