Mexico Kuo's Q4 chemical earnings fall on fewer one-time benefits

Source: ICIS News

2019/02/13

HOUSTON (ICIS)--The chemical business of Mexican conglomerate Grupo Kuo reported a decline in fourth-quarter operating earnings because of fewer one-time benefits, it said.

The following table summarises the Q4 performance of the chemical business. Figures are in millions of pesos.

Q4 18 Q4 17 Change
Sales 3,902 3,181 22.7%
Operating profit 277 397 -30.2%
Operating margin 7.1% 12.5%
EBITDA 382 474 -19.4%
EBITDA margin 9.8% 14.9%

Sales rose because of higher demand for synthetic rubber and polystyrene (PS), Kuo said. Also, prices and volumes rose for Kuo's synthetic rubber unit because of demand from asphalt modifiers, lubricants and adhesives producers.

Synthetic rubber is produced through Dynasol, a joint venture with Spain’s Repsol, while PS is made through Resirene.

Kuo also makes automobile parts and transmissions. Other businesses process pork and sell packaged food.