Mexichem Releases Second Quarter 2019 Financial Results
July 24, 2019
Mexico City, July 24, 2019 – Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) (“the Company” or “Mexichem”) today released unaudited results for the second quarter of 2019.
“Since we kicked off our transformation in March 2018 to evolve into a purpose-driven, future fit organization, we have accomplished work on a number of overarching initiatives including: restructuring our Go-to-Market organization to enhance customer centricity; prioritizing capital allocation to continue improving ROIC; and executing company-wide efforts on talent, human-centered innovation, digital readiness, operational excellence and the circular economy,” said Mexichem CEO Daniel Martínez-Valle. ”Furthermore, in a launch planned for early September, we intend to change our corporate name and brand, subject to shareholder approval. This is central to our identity and embodies the scope of our entire transformation.”
Martínez-Valle added, “We remain focused on, and excited, about the company’s long-term strategy, and are committed to taking every step necessary to unlock shareholder value, including exploring strategic alternatives for our Vinyl business.”
In regards to our performance in the second quarter, as expected, the PVC and caustic soda market conditions remained challenging, along with Fluor’s Downstream business, which was materially impacted in Q2 by the illegal importation and selling of refrigerant gases into the EU in breach of the EU F-gas regulations.
We expect these challenges to continue into the second half of the year. However, we’re already starting to see sequential improvements for some of our business sectors, specifically, in our Vinyl business. Furthermore, growth in our Fluor Upstream business is expected to partially offset the challenges in our Fluor Downstream business