Mexichem reports results in line with expectations for first quarter 2019
April 24, 2019
Mexichem released its financial results for the first quarter of 2019, with numbers in line with expectations.
Revenue increased 1% compared to the first quarter of 2018, or 6% on a constant currency basis. Revenue for the Fluent Business Group grew 6% to $1.8 billion, or 13% on a constant currency basis, contributing in part to Netafim, which reports under Fluent, experiencing double-digit growth and adding a full quarter of revenue to consolidated numbers.
Revenue for the Fluor Business Group remained flat, while revenue for Vinyl fell by 8%, or 5% on a constant currency basis, as the business continues to face headwinds, including lower volumes and tighter conditions in PVC and caustic soda prices.
Mexichem CEO Daniel Martínez-Valle said he is encouraged by the momentum that the Datacom, Precision Agriculture and Building & Infrastructure businesses that make up the Fluent Business Groups are bringing to the company.
Martínez-Valle added that the company is working to improve operational efficiency and cost control measures in the Vinyl business, emphasizing that the global PVC market continues to have very strong fundamentals.
Finally, he said Mexichem continues to focus on specialty solutions that carry higher margins, which represent 66% of total EBITDA for the quarter. This focus on downstream growth is making the company more global, more diversified, and more focused with its solutions.