MEXICO CITY (Reuters) -Mining and transportation conglomerate Grupo Mexico reported a second-quarter net profit that climbed 10%, surpassing analysts’ forecasts as it cut costs in its mining division, even as revenues and copper production slipped downward.
Net profit for the group, a top copper producer, came in at $1.23 billion from revenues that edged down 4% to $4.24 billion, according to a filing dated late Monday, the latter above a $4.22 billion estimate of analysts polled by LSEG.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the three months through end June meanwhile came in at $2.36 billion. Analysts polled by LSEG had expected EBITDA to land at just $2.22 billion.
Grupo Mexico, controlled by billionaire German Larrea, ranks among the world’s largest copper producers by volume.
It maintained forecasts for an expected annual output of 1.08 million metric tons of copper, as output of the red metal over the quarter reached 267,325 tons, 1.3% less than the same period a year earlier, due to lower output at its Buenavista mine in Mexico’s northern Sonora state.
Sales also dipped 2.9% from a year earlier, to 252,498 tons.
The mining division’s cash cost, however, dipped 10% from a year earlier.
Earlier this month, U.S. President Donald Trump announced a 50% tariff on copper shipments starting August 1 in a bid to promote domestic development.
The U.S. however depends on imports for nearly half of its refined copper needs, and homegrown projects often take years to get off the ground. Chile, Canada and Mexico are its main suppliers.
Grupo Mexico’s transport division saw sales slide due largely to foreign exchange effects, the firm said, while its infrastructure arm was hit by the suspension of four platform projects on the part of state oil producer Pemex .
(Reporting by Sarah Morland and Noe Torres; Editing by Aida Pelaez-Fernandez)
Comments