6-K 1 d60675_6-k.txt REPORT OF FOREIGN ISSUER UNITED STATES OF AMERICA SECURITITES AND EXCHANGE COMISION Washington D.D. 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 or 15d-16 OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the month of September 2004 QUINENCO S.A. (Exact name of registrant as specified in charter) QUINENCO, INC. (Translation of registrant's name into English) Quinenco S.A. Enrique Foster Sur 20, 14th Floor Santiago, Republic of Chile Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12(g)3-2(b) under the Securities Act of 1934 Yes |_| No |X| If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12(g)3-2(b): ______________ The following document is being filed with this 6-K report and is attached hereto. Quinenco Announces Creation of Rio Azul S.A. [LOGO] QUINENCO S.A. FOR IMMEDIATE RELEASE For further information contact: Cindi Freeman Investor Relations Manager Quinenco S.A. (56-2) 750-7221 e-mail: cfreeman@lq.cl QUINENCO ANNOUNCES CREATION OF RIO AZUL S.A. September 7, 2004- Santiago, Chile. Quinenco S.A. (LQ:NYSE) reported to the Chilean Superintendency of Securities and Insurance (SVS) today that its Board of Directors had approved the creation of a wholly-owned subsidiary, Rio Azul S.A. Initial capital of Rio Azul S.A. will be Ch$2 bln (equivalent to approximately US$3.2 mln). Quinenco, in its communication to the SVS, stated that the creation of Rio Azul will facilitate the strategic segmentation of its investments. Quinenco S.A., a leading Chilean business conglomerate, is the controlling entity of a portfolio of companies involved in financial services, food and beverage, telecommunications and manufacturing. # SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. QUINENCO S.A. By: s/s Luis Fernando Antunez ------------------------------ Name: Luis Fernando Antunez Title: Authorized Representative Dated: September 8, 2004

-------------------------------------------------------------------------------------------------------------------- Quinenco's ownership % at 2Q 2003 1Q 2004 2Q 2004 2Q 2004 YTD 2003 YTD 2004 Sector/Company 6/30/2004 MCh$ MCh$ MCh$ MUS$ MCh$ MCh$ -------------------------------------------------------------------------------------------------------------------- Financial Services: Banco de Chile (1)(3) 53.5% 10,288 11,191 13,457 21.1 19,499 24,648 -------------------------------------------------------------------------------------------------------------------- Food & Beverage: CCU (4) 30.8% (303) 5,087 (17) -- 9,880 5,070 Indalsa (Ex-Lucchetti) (1) 95.6% (156) 806 (1,548) (2.4) (818) (743) -------------------------------------------------------------------------------------------------------------------- Telecommunications: Telsur (1) 73.6% 1,173 1,215 1,230 1.9 2,463 2,445 Entel (2) 5.7% 604 819 708 1.1 1,727 1,527 -------------------------------------------------------------------------------------------------------------------- Manufacturing: Madeco (1) 55.2% 16 946 1,667 2.6 (4,307) 2,613 -------------------------------------------------------------------------------------------------------------------- Other operating companies (392) (474) (420) (0.6) (679) (893) -------------------------------------------------------------------------------------------------------------------- Total operating companies 11,230 19,590 15,077 23.7 27,765 34,667 -------------------------------------------------------------------------------------------------------------------- Quinenco & holding companies (11,097) (11,065) (8,553) (13.4) 12,841 (19,618) -------------------------------------------------------------------------------------------------------------------- Total 133 8,525 6,524 10.3 40,606 15,049 --------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------ 2Q 2003 1Q 2004 2Q 2004 2Q 2004 YTD 2003 YTD 2004 MCh$ MCh$ MCh$ MUS$ MCh$ MCh$ ------------------------------------------------------------------------------------------------------------ Revenues ------------------------------------------------------------------------------------------------------------ Madeco 62,357 74,829 86,291 135.4 125,145 161,119 Telsur 12,919 12,717 12,854 20.2 25,687 25,571 Indalsa (ex Lucchetti) 15,885 1,093 (3) -- 30,458 1,090 Quinenco & holding 1,997 1,638 1,032 1.6 4,136 2,670 ------------------------------------------------------------------------------------------------------------ Total 93,158 90,277 100,174 132.4 185,426 190,450 ------------------------------------------------------------------------------------------------------------ Operating income (loss) ------------------------------------------------------------------------------------------------------------ Madeco 3,405 5,993 8,102 12.7 5,596 14,095 Telsur 3,010 2,875 3,024 4.7 6,100 5,900 Indalsa (ex Lucchetti) 999 306 (208) (0.3) 1,299 98 Quinenco & holding (2,363) (2,420) (2,307) (3.6) (4,602) (4,728) ------------------------------------------------------------------------------------------------------------ Total 5,051 6,754 8,611 13.5 8,393 15,365 ------------------------------------------------------------------------------------------------------------ Non-operating income (loss) ------------------------------------------------------------------------------------------------------------ Interest income 845 562 545 0.9 1,610 1,107 Share of net income/loss from related co: Banco de Chile 10,288 11,191 13,457 21.1 19,499 24,648 CCU (303) 5,087 (17) -- 9,880 5,070 Entel 604 819 708 1.1 1,727 1,527 Other equity investments (271) (287) (15) -- (764) (301) Other non-op income 553 1,621 3,566 5.6 37,186 5,187 Amortization of GW expense (5,145) (5,133) (5,107) (8.0) (10,372) (10,240) Interest expense (9,149) (8,606) (6,553) (10.3) (19,527) (15,159) Other non-op expenses (7,517) (1,405) (5,200) (8.2) (12,122) (6,606) Price-level restatement (2,667) 1,243 (633) (1.0) (401) 610 Foreign exchange gains & losses 2,632 (514) (1,161) (1.8) 216 (1,675) ------------------------------------------------------------------------------------------------------------ Total (10,130) 4,578 (410) (0.6) 26,932 4,168 ------------------------------------------------------------------------------------------------------------ Income Tax (741) (1,773) (196) (0.3) (1,613) (1,969) Extraordinary items -- -- -- -- -- -- Minority Interest (457) (1,507) (1,993) (3.1) (96) (3,500) Amortization of negative GW 6,411 473 512 0.8 6,990 985 ------------------------------------------------------------------------------------------------------------ Net income (loss) 134 8,525 6,524 10.3 40,606 15,049 ------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------- As of As of As of As of 6/30/03 3/31/04 6/30/04 6/30/04 MCh$ MCh$ MCh$ MUS$ -------------------------------------------------------------------------------------------- Current assets 265,207 268,834 230,695 362.6 Fixed assets 380,551 294,277 291,384 457.9 Other assets 839,620 798,646 782,888 1,230.4 -------------------------------------------------------------------------------------------- Total assets 1,485,378 1,361,757 1,304,967 2,050.9 -------------------------------------------------------------------------------------------- Current liabilities 233,492 146,484 204,661 321.6 Long-term liabilities 507,816 461,794 364,859 573.4 Minority interest 69,220 101,493 104,073 163.6 Shareholders' equity 674,850 651,986 631,374 992.3 -------------------------------------------------------------------------------------------- Total liabilities & shareholders' equity 1,485,378 1,361,757 1,304,967 2,050.9 --------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------- Ownership 2Q 2003 YTD 2003 1Q 2004 2Q 2004 2Q 2004 YTD 2004 % MCh$ MCh$ MCh$ MCh$ MUS$ MCh$ -------------------------------------------------------------------------------------------------- Banco de Chile (1) 53.5% 10,288 19,499 11,191 13,457 21.1 24,648 --------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------- Quarter Accumulated for Year -------------------------------------------------------------------------------------------------------- 2Q 2003 2Q 2004 2Q 2004 YTD 2003 YTD 2004 YTD 2004 MCh$ MCh$ MUS$ MCh$ MCh$ MUS$ -------------------------------------------------------------------------------------------------------- Operating revenues 112,442 121,684 191.2 214,196 228,150 358.6 Provision for loan losses (17,022) (18,648) (29.3) (30,422) (33,118) (52.0) Operating expenses (56,073) (55,383) (87.0) (109,490) (110,683) (173.9) Net Income (loss) 35,487 44,486 69.9 66,890 82,381 129.5 -------------------------------------------------------------------------------------------------------- Loan portfolio 6,271,194 6,546,302 10,288.1 Total assets 9,342,179 9,566,505 15,034.6 Shareholders' equity 638,948 599,368 942.0 -------------------------------------------------------------------------------------------------------- Net interest margin 3.1% 4.6% Net Financial Margin 4.1% 4.3% Efficiency ratio 49.9% 45.5% ROAE 22.4% 29.5% ROAA 1.6% 1.8% -------------------------------------------------

--------------------------------------------------------------------------------------------------- Ownership 2Q 2003 YTD 2003 1Q 2004 2Q 2004 2Q 2004 YTD 2004 % MCh$ MCh$ MCh$ MCh$ MUS$ MCh$ --------------------------------------------------------------------------------------------------- CCU 30.8% (303) 9,880 5,087 (17) -- 5,070 Indalsa (ex Lucchetti) 95.6% (156) (818) 806 (1,548) (2.4) (743) --------------------------------------------------------------------------------------------------- CCU --------------------------------------------------------------------------------------------------- Quarter Accumulated for Year --------------------------------------------------------------------------------------------------- 2Q 2003 2Q 2004 2Q 2004 YTD 2003 YTD 2004 YTD 2004 MCh$ MCh$ MUS$ MCh$ MCh$ MUS$ --------------------------------------------------------------------------------------------------- Sales 77,625 84,074 132.1 178,936 195,801 307.7 Operating income (loss) 1,053 3,946 6.2 16,597 27,462 43.2 Net Income (loss) (982) (55) (0.1) 32,089 16,460 25.9 --------------------------------------------------------------------------------------------------- Total Assets 669,356 559,883 879.9 Shareholders' equity 279,938 284,277 446.8 ---------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------- Quarter Accumulated for Year ---------------------------------------------------------------------------------------------- 2Q 2003 2Q 2004 2Q 2004 YTD 2003 YTD 2004 YTD 2004 MCh$ MCh$ MUS$ MCh$ MCh$ MUS$ ---------------------------------------------------------------------------------------------- Sales 15,885 (3) -- 30,458 1,090 1.7 Operating income (loss) 999 (208) (0.3) 1,299 98 0.2 Net Income (loss) (167) (1,619) (2.5) (874) (777) (1.2) ---------------------------------------------------------------------------------------------- Total Assets 74,873 29,095 45.7 Shareholders' equity 15,573 27,460 43.2 ----------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------- Ownership 2Q 2003 YTD 2003 1Q 2004 2Q 2004 2Q 2004 YTD 2004 % MCh$ MCh$ MCh$ MCh$ MUS$ MCh$ ------------------------------------------------------------------------------------- Telsur 73.6% 1,173 2,463 1,215 1,230 1.9 2,445 Entel (1) 5.7% 604 1,727 819 708 1.1 1,527 -------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------- Quarter Accumulated for Year ------------------------------------------------------------------------------------------- 2Q 2003 2Q 2004 2Q 2004 YTD 2003 YTD 2004 YTD 2004 MCh$ MCh$ MUS$ MCh$ MCh$ MUS$ ------------------------------------------------------------------------------------------- Sales 12,919 12,854 20.2 25,687 25,571 40.2 Operating income (loss) 3,010 3,025 4.8 6,100 5,900 9.3 Net Income (loss) 1,594 1,670 2.6 3,349 3,320 5.2 ------------------------------------------------------------------------------------------- Total Assets 138,230 130,189 204.6 Shareholders' equity 60,192 62,534 98.3 -------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------ Ownership 2Q 2003 YTD 2003 1Q 2004 2Q 2004 2Q 2004 YTD 2004 % MCh$ MCh$ MCh$ MCh$ MUS$ MCh$ ------------------------------------------------------------------------------------------ Madeco (1) 55.2% 16 (4,307) 946 1,667 2.6 2,613 ------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------- Quarter Accumulated for Year ---------------------------------------------------------------------------------------------- 2Q 2003 2Q 2004 2Q 2004 YTD 2003 YTD 2004 YTD 2004 MCh$ MCh$ MUS$ MCh$ MCh$ MUS$ ---------------------------------------------------------------------------------------------- Sales 62,357 86,290 135.6 125,145 161,119 253.2 Operating income (loss) 3,405 8,102 12.7 5,596 14,095 22.2 Net Income (loss) 17 3,018 4.7 (5,110) 4,732 7.4 ---------------------------------------------------------------------------------------------- Total assets 389,371 355,443 558.6 Shareholders' equity 153,308 161,841 254.3 ----------------------------------------------------------------------------------------------

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