MEDELLIN, Colombia (ICIS)--Shares in Mexico-based polyethylene terephthalate (PET) producer Alpek fell by 4.1% on Wednesday to a low of Mexican peso (Ps) 21.25/share ($1.63/share) after the company reported disappointing Q1 2014 earnings.
Alpek, the petrochemical arm of conglomerate Grupo Alfa, said late on Tuesday that its Q1 net profit reached $24m, down by about 61% from $61m in the prior-year quarter.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by about 34% year over year to $105m, impacted by a $22m inventory devaluation charge resulting from a steep drop in polyester feedstock prices, the company said.
Alpek’s revenues for the quarter stood at $1.58bn, down by about 14% from $1.83bn mainly as a result of lower polyester prices following the decline in feedstock prices.
Sales volumes in Alpek’s polyester division fell by 3% year over year to 746,000 tonnes, while volumes in the company’s plastics and chemicals unit, which produces expandable polystyrene (EPS), polypropylene (PP), caprolactam and other products, were up by 2% to 196,000 tonnes.
Alpek’s parent company reported in a separate filing a Q1 net income of $128m, down by about 38% from $206m a year earlier as a result of Alpek’s drop in earnings and a higher financial expense due to less favourable exchange rates.
Alfa also owns Nemak (aluminium auto components), Sigma (refrigerated foods) and Alestra (IT and telecommunications).
($1 = Ps13.06)