Mexico Mexichem Q3 profits soar on higher prices, Wavin acquisition

26 October 2012 21:56  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Mexican chemical conglomerate Mexichem reported on Friday a jump in third quarter net profits, driven by higher prices and the recent acquisition of Dutch plastic pipes firm Wavin.

Profits stood at Mexican pesos (Ps) 1.291bn ($99.5m, €76.6m), up from Ps37m reported for the same period last year.

Quarterly revenues stood at Ps17.82bn, a 44% increase on sales of Ps12.35bn recorded in the third quarter of 2011.

“Average prices in the third quarter increased by 20%, and sales volumes by 20% due to the integration of Wavin in the results,” Mexichem said in a statement.

Mexichem acquired Wavin in June after the deal was approved by the European Commission.

“With its new range of products, Wavin gives Mexichem the opportunity to consolidate its growth in Latin America,” Mexichem said.

Mexichem has bought more than 15 companies since 2007.

Bloomberg reported on Friday that Mexichem may land two more acquisitions as soon as this quarter.

Mexichem did not immediately respond to a request for comment.

($1 = Ps12.97)
($1 = €0.77)

By: Simon West

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