Mexico’s ALFA projects 8% earnings growth for 2012

09 February 2012 23:31  [Source: ICIS news]

MEXICO CITY (ICIS)--Industrial conglomerate Alfa on Thursday projected 8% growth in earnings for 2012 and a 5% increase in sales.

Alfa projected earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.7bn (€1.3bn) for 2012.

Sales were forecast at $15.5bn.

Alfa projected its chemical business, Alpek, to reach EBITDA of $810m on a 10% increase in sales to $1.7bn.

ALFA said it has earmarked $600m for capital expenditures this year, including $125m for Alpek.

The Alpek capital expenditures would include $50m-60m for general maintenance and the rest would be spent on undisclosed expansions.

The expenditures follow the integration in 2011 of the Wellman Pearl River, Mississippi, polyethylene terephthalate (PET) and the purified terephthalic acid (PTA)-PET plants in South Carolina, which were bought from Eastman.

CFO Raul Millares said during the company’s earnings conference call that it is examining potential opportunities in North America stemming from its shale gas boom.

The company added that it is 22 to 23 months from opening a $140m cogeneration plant for subsidiary Petrotemex.

($1 = €0.75)

By: James Young

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