Mexichem’s guidance for 3er quarter 2008 results
The company announces that its sales and EBITDA for the period will amount to around P$8.3 and P$1.43 billion pesos, respectively.
Mexichem S.A.B. de C.V. reports today its preliminary results for third quarter of 2008:
The company announces that its sales and EBITDA for the period will amount to around P$8.3 and P$1.43 billion pesos, respectively. These figures represent 18.4% and 3.6% growth, respectively, vs. the same period in 2007. It is importan to note that, in 3Q07, Pavco figures for the March-June period (Sales worth P$742.0 million and EBITDA worth P$171.0 million) were included, as Mexiche was authorized in that quarter to consolidate said company, excluding this effect, growth would have been 32.2% and 18.2%
With regard to accrued figures up to 3Q08, YOY increases vs. 2007 are 41.8% in sales and 29.7% in EBITDA.
Moreover, net debt by the end of September 2008 is estimated at around US$754.0 million, showing a US$8.3 million increase QOQ. In this period, around US$80 millio were amortized using the company’s own cash at hand. The net debt/EBITDA ratio of dollar balance is 1.52 times.
As for Mexichem’s acquisitions plan, in September, Colombian authorities authorized the purchase of Prodesal, a Colombian company that produces and markets salt derivate products.
The definitive third quarter results will be released to the Stock Exchange in the last weel of October 2008.
Ricardo Gutierrez, Director General of Mexichem said: “The high level of financial volatility resulting from deh US credit crisis supports an uncertain outlook; however, thanks to the strategies it has established its geographical diversification and its leadership position in the markets where it operates, Mexichem is prepared to deal with it and sustain its growth”.
Likewise, Jaime Morales Vazquez, Director od Corporate Development, stated: “Mexichem continues with its growth plans through acquisitions; we have already obtained approval for the lines of credit and the financial mechanisms for this purpose. These acquisitions will continue with the strategy of integrating the company with higher value added products, offering certainty to our investors”.
Mexichem is a Mexican company specializing in the chamical and petrochemical sector, and has been traded on the markets since 1978.