Mexico Alpek posts Q2 net loss on Cape Fear closure

16 July 2013 00:01  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Alpek, the petrochemical arm of Mexican industrial conglomerate Grupo Alfa, posted on Monday a Q2 net loss attributed to controlling interests of $71m (€55m), compared with a profit of $82m for the same time last year.

Alpek said income was impacted by $114m of losses related to the accelerated closure of the company’s Cape Fear polyethylene terephthalate (PET) and purified terephthalate acid (PTA) plant near Wilmington, North Carolina, in June.

Alpek’s net earnings totalled $43m excluding the closure, the company said.

“While the decision to shut down the Cape Fear plant implies short-term costs, it will allow Alpek to achieve substantial savings in the near future,” said ALFA president Alvaro Fernandez.

Alpek’s revenues for the quarter stood at $1.81bn, down from $1.91bn in the same month last year, while earnings before interest, tax, depreciation and amortisation (EBITDA) dropped to $122m from $201m.

Alpek’s parent company, Grupo Alfa, said its Q2 net profit sank to $8m from $112m a year earlier, hurt by Alpek’s losses and a weaker peso, while revenues and EBITDA grew by 6% and 5% year on year, reaching $4.07bn and $507m, respectively.

Alfa also owns Nemak (aluminium auto components), Sigma (refrigerated foods), Newpek (natural gas and hydrocarbons) and Alestra (IT and communications).

By: Simon West

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