Mexichem Q2 profit up 65% on new acquisitions

28 July 2011 00:29  [Source: ICIS news]

MEXICO CITY (ICIS)--Mexichem's second-quarter profits rise by 65% year-on-year to $113m on heavy demand and the integration of new acquisitions, Mexico's sole producer of polyvinyl chloride (PVC).

The company said sales rose to $1.05bn (€725m), up 38% over the second quarter of 2010 and higher than the forecast of 36%. Earnings before interest, tax, depreciation and amortisation (EBITDA) were also up by 41% to $255m.

In a statement to the Mexican stock exchange (the Bolsa), Mexichem gave a breakdown of the acquisitions.

The company said it continued to gain ground on the purchase of INEOS Fluor as well as Policyd and Plasticos Rex last year, expanding its fluor chain and consolidating its PVC and pipe business in Mexico.

Adding to this, the company also took control of compositor AlphaGary in the US late last year.

Mexichem also noted the recent purchase of the Showa Doku refrigerant plant for $150m. It said that it would restart the plant in the fourth quarter after an overhaul, making Mexichem the only producer of refrigerants in Asia outside of China.

For the first half of the year, Mexichem's chloro-vinyl chain produced a net profit of $94.6m, up 182% over the first half of last year.

The fluor chain had a segment profit of $101.5m, or 292% higher year-on-year.

Consolidated profit for the first six months of 2011, including all divisions was $220m – a 50% increase over the first six months of 2010.

($1 = €0.69)

For more on PVC go to ICIS Chemical Intelligence

By: James Young

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