Mexichem says Q4 sales to rise 16%

14 January 2011 18:11  [Source: ICIS news]

MEXICO CITY (ICIS)--Shares of Mexican chemical conglomerate Mexichem dropped slightly on Friday morning despite the company’s projection of a 16% jump in fourth-quarter sales to Mexican pesos (Ps) 9.4bn ($770m, €578) on the strength of volumes and prices.

Shares of Mexichem on the Mexican stock exchange traded at Ps45.20, down Ps0.68 as of 10:58 hours Houston time (16:58 hours GMT).

The company said it expected fourth-quarter sales to increase 16% to $140m in earnings before interest, tax, depreciation and amortisation (EBITDA).

The numbers reflected strong growth in prices and volumes of multiple business lines including fluorine (fluorite and aluminium fluoride), polyvinyl chloride (PVC) and transformed products.

The company also cited its second-quarter acquisition of INEOS-Fluor and added synergies related to the purchase of Policyd and Plasticos REX in November.

Mexichem cited improved cost control and automation investments for the gains in the EBITDA.

It also gave guidance on annual results, indicating annual sales of $2.98bn in 2010 - an 18% jump from the previous fiscal year – and $664m in EBITDA, a 28% increase.

($1 = Ps12.13) ($1 = €0.75)

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By: James Young

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