is continuing to find high demand for precision etched and electroformed parts.
Due to softening economic conditions, however, BMSP
has experienced a reduction in its sales backlog and is expecting sales and profitability in the first, and possibly second, quarter of 1999 to be lower than prior year results for the comparable period.
As previously anticipated, BMSP
experienced a reduction in sales and profitability in the first quarter of 1999 compared to prior year first quarter results due to what we believe are temporary disruptions in the ordering patterns of certain major customers.
Going forward, BMSP will be better positioned to more efficiently explore its strong client base and good franchise within the individual consumer segment, aided by Bradesco's wide product range; management estimates that the two banks' client bases in this segment overlap an estimated 30%.
Founded in 1938, BMSP is a medium-sized, multiple bank operating through 405 outlets (220 branches), formerly controlled by the Vidigal family.
Including the 70% stake directly held by the Vidigal family in BMSP Luxemburg, the goodwill involved in this transaction amounts to some BRL250m (USD104m).
Already Brazil's largest domestic private bank, the consolidation of BMSP into Bradesco will create a bank with total assets reaching some BRL116bn (USD48bn).