28 February 2014 00:12 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Mexico-based chemical conglomerate Mexichem swung to a net loss of $11.8m in the fourth quarter from a year-ago profit of $7.59m, hurt by a jump in cost of sales and a higher income tax burden, the company said.
The company’s net sales in the fourth quarter reached $1.27bn, up by about 18% from $1.08bn in the prior-year quarter, while earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 3.9% to $174.5m from $181.5m.
Mexichem, the largest producer of polyvinyl chloride (PVC) and vinyl resins in Latin America, said its cost of sales in the quarter increased by about 31% year on year to $940.2m, while income tax rose by about 61% to $39.7m in the same period.
For the whole of 2013, revenues increased by 8% to $5.17bn, mainly due to the consolidation of Wavin in the company’s integral solutions chain for the full year, adding an additional $466m of sales compared to 2012.
Mexichem acquired the PVC pipe maker in June 2012.
EBITDA for the full year fell by 7% to $891.1m, in part due to prices of refrigerant gases that hurt the company’s fluorine chain EBITDA result. Mexichem’s annual net income dropped by about 69% to $85.6m.
Mexichem said it made a first equity contribution of $23m to a joint venture (JV) with US-based Occidental Chemical (OxyChem) to build a 544,000 tonne/year ethane cracker at Ingleside, Texas.Plans are on schedule, with start-up expected in the first half of 2017, Mexichem said.
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