Mexico's KUO reports $12m profit for second quarter

19 July 2011 23:02  [Source: ICIS news]

MEXICO CITY (ICIS)--Mexican conglomerate Grupo KUO, parent of KUO Chemical, reported on Tuesday that its second-quarter earnings rose by five times compared with the same quarter last year to $12.0m (€8.5m).

Total sales for KUO reached $576m, up by 26% over the earnings of the 2010 second quarter.

KUO’s earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 18% to $47m.

KUO Chemical reported sales of $300m in the 2011 second quarter, an increase of 35% year on year. 

The growth in sales came as a result of an average increase of 28% in sales prices, as well as 5% higher sales volumes, primarily in its plastics unit on “better performance in key accounts and the export market [US, Europe and Latin America].”

For the year to date, KUO Chemical reported sales of $564m, 33% higher than the same period in 2010. The segment also showed a 19% increase in EBITDA to $19m on higher sales, adequate expense controls, market consolidations and other factors.

The increase in EBITDA compensated for price increases of raw materials such as 58% for butadiene (BD), 13% for styrene, 23% acrylonitrile (ACN) and 39% for conversion oil, KUO said.

Grupo KUO reported a total of $12m in capital investments the second quarter, including two initiatives budgeted for its chemical segment.

These include investments in its elastomers unit for the development of synthetic rubber for tyres, and the continued renovation of the marine terminal for its Dynasol joint venture in Santander, Spain.

($1 = €0.71)

By: James Young

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