Mexico Alpek Q3 profit falls 53% year on year on income decrease

22 October 2013 00:23  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Mexico-based polyethylene terephthalate (PET) producer Alpek posted on Tuesday Q3 net earnings attributable to controlling interests of $41m (€30m), down by about 53% compared with $87m in the prior-year quarter.

Alpek, the petrochemical arm of Mexican conglomerate Grupo Alfa, attributed the drop in earnings to a 21% decrease in operating income and a 17% rise in comprehensive financing expenses.

Consolidated revenues for the quarter reached $1.78bn, down by a percentage point from $1.80bn a year ago, while earnings before interest, tax, depreciation and amortisation (EBITDA) was $158m, down by about 17% from $190m, Alpek said.

By segment, Q3 sales revenues of polyester and polyester products fell by 2% year on year, driven by an 8% drop in volumes that was partially offset by a 6% increase in prices, the company said.

Sales revenues in the company’s plastics and chemicals segment, which produces expandable polystyrene (EPS), polypropylene (PP), caprolactam and other products, were up by 5% as a result of a 7% hike in prices.

The increase in average prices was partially offset by a 2% drop in volumes, Alpek said.

Alpek’s parent company, Grupo Alfa, said its Q3 profit totalled $170m, down more than 19% compared with $211m a year earlier. Alfa said that last-year’s Q3 benefitted from exchange rate gains that were not seen this year.

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

($1 = €0.73)

By: Simon West

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