Desc looks to reduce costs.

MEXICO CITY, Mar 21, 2003 (El Economista/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- Industrial companies conglomerate Grupo Desc reported that before the possible reduction on autopart exports to the United States, it would intensify the spending reduction program and look for new clients. Facing a war scenario, Desc will increase marketing programs to try to obtain more contracts to supply European and Asian automobile manufacturers. Desc also reported that the chemical business was depressed before the war, which is why it would continue reducing costs and improving productivity in all production lines.In the face of the possibility that Ford, Chrysler and General Motors decrease their demand of autoparts, the corporation has planned to diversify its portfolio of clients and supply the needs of original-equipment manufacturers, which continue gaining market share despite the uncertainty.Grupo Desc lost 1.03 billion pesos (US$96 million) in 2002 and net income dropped by 10.9% mainly due to the decreases in U.S. and Mexican economic activity, which resulted in production adjustments in automobile manufacturers and postponement of new projects.This article has been translated by Internet Securities, Inc. as a service to its customers. Internet Securities, Inc. makes no representation or warranty regarding the accuracy or content of the translation.

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