MEXICO CITY, April 15, 2013 (GLOBE NEWSWIRE) -- Empresas ICA, S.A.B. de C.V. (BMV:ICA) (NYSE:ICA), the largest infrastructure and construction company in Mexico, provided additional information on the effect on its financial statements of the adoption of IFRS 11 "Joint Arrangements" and related pronouncements of the International Accounting Standards Board.
IFRS 11 establishes the principles for the presentation of financial information for parties that have a participation in agreements where control is exercised in a joint manner. ICA adopted these standards effective January 1, 2013, and prior period results will be restated for comparability. The first quarter 2013 results will be the first interim results prepared under the new standards.
IFRS 11 eliminates the use of proportional consolidation. It requires the analysis of the rights and obligations of each joint arrangement, in order to classify it as a joint operation or a joint venture. Joint operations are arrangements in which the parties (joint operators) have rights to the assets and obligations for the liabilities of the arrangement. A joint operator accounts for the assets, liabilities, income and expenses related to its participation in the joint operation. Joint ventures are arrangements in which the parties (joint venturers) have rights over the net assets of the agreement. A participant in a joint venture recognizes its participation in the joint venture as an investment using the equity method.
ICA has determined that the following legal entities are joint ventures that were previously accounted using proportional consolidation and will now be accounted using the equity method:
|Segment||Legal entities reclassified as joint ventures||Project/ Company|
|Rodio Kronsa, S.A.||Rodio Kronsa|
|Civil Construction||Actica Sistemas, S. de R.L. de C.V.||Actica|
|C7AI Servicios Industriales Especializados, S.A. de C.V.|
|Industrial Construction||ICA Fluor, S. de R.L. de C.V. (and subsidiaries)||ICA Fluor|
|Autovía Necaxa Tihuatlan, S.A. de C.V.||Nuevo Necaxa - Tihuatlan highway|
|Suministro de Agua de Queretaro, S.A. de C.V||Aqueduct II|
|Concessions||Aquos El Realito, S.A. de C.V.||El Realito aqueduct|
|Constructora de Infraestructura de Aguas Potosí, S.A. de C.V.|
|Infraestructura y Saneamiento de Atotonilco, S.A. de C.V.||WTP Atotonilco|
|Administración y Servicios Atotonilco, S.A. de C.V|
|Corporate and Other||Los Portales, S.A.||Los Portales|
The estimated effect of application of IFRS 11 on selected line items of ICA's 2012 consolidated results is shown in the following table:
|Empresas ICA Summary 2012 Financial Statements|
| Audited |
| Restated for |
|Share in net income of affiliated companies||(76)||364|
|Consolidated net income||1,707||1,707|
|Statement of cash flows|
|Cash and equivalents at beg. of period||10,900||8,858|
|Cash and equivalents at end of period||8,413||6,088|
|Other: Construction Backlog||42,238||35,353|
As a result of adoption of IFRS 11 and the merger of the affordable housing business with Javer, in 2013 ICA will report consolidated results in the following segments: Civil Construction, Concessions, Airports, and Corporate and Other. ICA expects to provide relevant information on the performance of the principal non-consolidated businesses in its earnings reports or as material developments occur.
Empresas ICA, S.A.B. de C.V. is Mexico's largest infrastructure company. ICA carries out large-scale civil and industrial construction projects and operates a portfolio of long-term assets, including airports, toll roads, water systems, and real estate. Founded in 1947, lCA is listed on the Mexican and New York Stock exchanges. For more information, visit www.ica.com.mx/ir
This press release may contain projections or other forward-looking statements related to ICA that reflect ICA's current expectations or beliefs concerning future events. Such forward-looking statements are subject to various risks and uncertainties and may differ materially from actual results or events due to important factors such as changes in general economic, business or political or other conditions in Mexico, Latin America or elsewhere, changes in capital markets in general that may affect policies or attitudes towards lending to Mexico or Mexican companies, changes in tax and other laws affecting ICA's businesses, increased costs, unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms and other factors set forth in ICA's most recent filing on Form 20-F and in any filing or submission ICA has made with the SEC subsequent to its most recent filing on Form 20-F. All forward-looking statements are based on information available to ICA on the date hereof, and ICA assumes no obligation to update such statements.
CONTACT: For more information contact: Iga Wolska firstname.lastname@example.org Elena Garcia email@example.com firstname.lastname@example.org (5255) 5272 9991 ext.3696 Gabriel de la Concha, CIO email@example.com Victor Bravo, CFO firstname.lastname@example.org In the United States: Daniel Wilson, Zemi Communications (1212) 689 9560 email@example.com
Source:Empresas ICA, S.A.B. de C.V.