Flender/Flender Gear Units/Helical gear reducers H4
ing 4% of output was sold on the world sugar market at price of $8.0/quintal. The average price of sugar

in 1/9 was $1.7 per quintal. LE YEmv . No do Torrog Empolmo carrolere ,1 BAUER LINDSAY 1 1I ISnBnlo

CARBOMATIC 1 0Pres 0 1fgo El Genlzoro f1 IRRIFRANCE 1 Bo Los Domos 1 q9 BAUER 9 1 1 LINDSAY

9 Is lea 1 () 1<, IRRIFRANCE 9 VALMONT 1 ll (Los2a VALMONT 9 0 Bralles Is* (les CARBOMATIC 1

0, 1 . 5 ? 4 ~ . ;2v__9 2 s1 No DE LOTES ,1 1 1JB- 1 1 0 -- gl 5- 0u4 ----- CANAL LIMITE CANAL CP- DE PROPIEDAD SECUNDARIO lPITAPAI- 'RIEGO .. * ,i9(~ ) ~ 2 . ~- __~ **\ ~,DEL Fo &? COM PLEJOR IE GO PO GRAV EDA $to~zro CONVENCIONAL .. Or . COMPLEJOAZUCAREMO VICTORIA D9 JULIO MANAGUA - INIC. -. 2. Current Financial Condition The seven sugar mills, including Victoria de Julio, have operated largely as cost centers urder CONAZUCAR. Financial information is not reported on timely basis and is unrel,able. Consequently, the usefulness of financial information reported on Victoria de Julio is limited. However, PW/IPG has developed an estimated statement of profit and loss for 1/9 based on results for the first nine periods of the fiscal year. The estimated net loss for the year is estimated at 4.7 million ($9.1 million) on sales of 5.5 million ($1.7 million). fundamental problem at IVJ is that only 1,0 of the planned 2,0 manzanas is under cultivation, limiting the factory to operate well below full capacity even with favorable agricultural yield. The low 1/9 agricultural yield exacerbated this problem by dropping mill utilization to only 4%. Low capacity utilization results in high factory overhead costs as percent of sales. As mentioned above, low agricultural yields have contributed substantially to the losses at IVJ. The 1/9 agricultural yield was 3 tons/quintal compared to the 3 tons/quintal average for the prior three years. The industry expert believes that the mill should be prcducing in the area of 5-5 tons/quinta