MONTERREY, MEXICO — Production down times arising from labor issues at company operations in Venezuela dragged down earnings at Gruma S.A.B. de C.V. in fiscal 2012. Majority net income for the Monterrey-based maker of tortillas and corn flour totaled 1,115 million pesos ($87.4 million) in the fiscal year ended Dec. 31, 2012, down 79% from 5,271 million pesos in fiscal 2011.

Sales totaled 64,317 million pesos ($5,041 million), up 12% from 57,645 million pesos in the same period a year ago.

Operating income at Gruma Corp. totaled 1,392 million pesos ($109.1 million), up 34% from 1,041 million pesos in fiscal 2011. Net sales totaled 26,645 million pesos ($2,088 million), up 7% from 24,810 million pesos a year ago. Sales volume at Gruma Corp. increased 8%.

Operating income at GIMSA totaled 1,749 million pesos, down 1% from 1,771 million pesos in fiscal 2011. Net sales totaled 17,573 million pesos, up 14%. Sales volume at GIMSA was up narrowly, to 1,983,000 tonnes from 1,959,000 tonnes.

Gruma said its capital expenditure program totaled $61 million during the fourth quarter of fiscal 2012 and $212 million during all of fiscal 2012. During the fourth quarter, most of the capital expenditures were allocated to U.S. operations for the construction of a tortilla plant in Florida that started operations at the end of the fourth quarter, capacity expansions at existing plants, and technology upgrades. To a lesser extent, Gruma also invested in other regions, particularly in England for the expansion of a tortilla plant and in Mexico for the expansion of a corn flour plant in Chiapas.

At a recent board of directors meeting, Gruma approved several initiatives designed to enhance the company’s value creation. The initiatives being implemented include:

• Focus on core businesses and analysis of potential reductions in the business portfolio.

• Rationalization of administrative expenses by optimizing shared services and administrative structures at corporate and operational levels.

• Rationalization of marketing expenses, especially advertising, through highly targeted campaigns.

• Reduction in allowances programs by focusing on effectiveness and targeted products, especially at Gruma Corp.

• Reduction in capital expenditures based on: postponing entry into new regions; leveraging available installed capacity in regions where the company has a presence; and stricter profitability criteria for each investment.