06 July 2011 22:45 [Source: ICIS news]
MEXICO CITY (ICIS)--Mexichem expects to see second-quarter sales rise 36% to 12.174bn pesos (Ps) ($1.045bn) from the same quarter last year, the Mexico-based polyvinyl chloride (PVC) producer said on Wednesday.
Mexichem credited the growth to the integration of PVC and pipe units - Policyd, Plasticos REX and AlphaGary - over the last year and better coolant and PVC prices, as well as higher sales volumes in nearly every line it offers.
“We have increased our geographic presence and made strategic investments in the fluorine and vinyl chlorine chains, which gives us the chance to once again keep our growth up above 20% this year,” said CEO Rafael Davalos.
The company also forecast a 39% year-on-year second-quarter increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $251.5m, noting the previous reasons as well as recently adopted cost control and efficiency measures.
Mexichem also noted an improvement in the ratio of EBITDA to sales - 24% in the second quarter, compared with 18.7% in the fourth quarter of 2011 and 21.3% in the first quarter of this year.
Chief financial officer Miguel Ruiz pointed to this indicator as a sign that the company has “the necessary flexibility to sustain growth”.
The company also issued guidance on year-to-date results, noting an estimated 44% year-on-year increase in sales through June to $2.09bn, as well as a 42% hike in EBITDA to $474.3m.
Mexichem is scheduled to release its second-quarter earnings report on 28 July.
($1 = Ps11.644)
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