DOCSLIB.ORG

Grupo Mexico Maturities up to September 30, 2018

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Grupo Mexico Maturities up to September 30, 2018 RESULTS 3rd Quarter and Nine 3Q18 RESULTS GRUPO MÉXICO Months 2018 Mexico City, October 24, 2018 Grupo Mexico, S.A.B. de C.V. (“Grupo Mexico” “GMexico” BMV: GMEXICOB). Consolidated sales accumulated in 2018 were 13% higher than in the same period of 2017, totaling US$7.92 billion. In the Mining Division, sales reached US$5.99 billion, during these months, higher metal prices were reported for copper (+10.3%), zinc (+8.7%), and Molybdenum prices (+48.5%). In the Transportation Division, cars hauled increased by 20% to 1.5 million while sales increased 19% vs. 9M17. In Infrastructure, total sales rose 7% compared to the first 9 months of 2017, reporting the start of sales of electric energy in the Wholesale Electricity Market (MEM for its Spanish acronym), better results in the operation of the Salamanca-Leon highway, and drilling platforms marine. Accrued copper production over the first 9 months of 2018 reached 733,895 tons, with greater production in the Mexican and Peruvian operations, which compensated for lower volumes from ASARCO, due to the landslide experienced at the Mission mine in the first quarter. In the Mining Division, we confirmed our first-place position as the Company with the lowest cash cost in the Industry, at US$1.09/lb. of copper, and the largest copper reserves worldwide. 9M18 EBITDA totaled US$3.73 billion, 17% greater than in the same period of 2017. The Mining Division reached US$2.75 billion, representing 15% growth vs. 2017. The Transportation Division achieved US$756 million in EBITDA, 18% above the figure for the first three quarters of the previous year. The Infrastructure Division's EBITDA reached US$200 million, 10% greater than in the same period of a year earlier. Net consolidated profit totaled US$1.07 billion in 9M18. 16% less than the previous year due to the impairment of treasury shares and changes in US tax policy Capital investments during 9M18 reached US$1.20 billion--17% growth compared to the first 9 months of the previous year, proving once again our commitment to growth and value generation. In the Mining Division, the Toquepala expansion was completed, which will generate a production of 20,000 tons of copper in 2018 and 100,000 tons per year as of 2019. In the Transportation Division, investments during 9M18 reached US$241 million, for the investments made for Celaya and Monterrey bypasses which will achieve greater operating efficiencies. Next year will mark another inflection point with extraordinary growth for our company, as we expect to achieve maximum capacity at our new Toquepala concentrator, and recover the production of the San Martin mine. Thereby, compared to our forecasts for 2018, we expect 2019 to show a 12% increase in copper production, +38% in zinc, +30% in silver, and +21% in molybdenum. At average prices of 3Q18, these production improvements would represent a sales increase of over US$800 million. On October 19, 2018, the Management Board declared the payment of a cash dividend of $0.80 pesos per share outstanding, to be made in a single installment as of November 23, 2018. This dividend implies an annualized dividend yield of 6.8%, reflecting the strong operating cash flow generation, given the completion of the first stage of investment with the fulfilment of the Buenavista in Sonora, México and Toquepala in Tacna, Perú. Third Quarter Variance January - September Variance (Thousand US Dollars) 2017 2018 US$000 % 2017 2018 US$000 % Sales 2,535,321 2,594,524 59,203 2.3 7,049,168 7,928,219 879,051 12.5 Cost of Sales 1,257,045 1,381,887 124,842 9.9 3,660,002 4,063,031 403,029 11.0 Operating Income 912,015 845,705 (66,309) (7.3) 2,410,054 2,791,667 381,612 15.8 EBITDA 1,211,753 1,156,687 (55,066) (4.5) 3,182,446 3,732,372 549,925 17.3 EBITDA Margin (%) 47.8% 44.6% 45.1% 47.1% Net Income 467,580 249,599 (217,981) (46.6) 1,269,048 1,071,065 (197,983) (15.6) Profit Margin (%) 18.4% 9.6% 18.0% 13.5% Investments / Capex 378,593 411,760 33,167 8.8 1,031,195 1,224,344 193,148 18.7 Employees 29,377 31,509 2,132 7.3 29,377 31,509 2,132 7.3 All figures in US dollars (“US$”), currency of the United States of America, under U.S. GAAP, except where otherwise stated. _____________________________________________________________________________________________________________________ 3Q18– 9M18 www.gmexico.com Page 1 WorldReginfo - 9bf2d452-4b92-4f51-adef-71e709f0d65e 3Q18 RESULTS GRUPO MÉXICO Relevant Events Mining Division Projects Our investment philosophy is not based on copper price outlooks, but on the quality of the assets that we operate and develop. Throughout the years, our financial discipline has enabled us to continuously invest in our large asset portfolio of projects. We operate metallurgical mining units with state-of-the-art technology in investment grade countries, such as Mexico, Peru, the US, and Spain. We are currently developing the next stage of growth to achieve a copper production capacity of 1.8 million tons by 2025. This represents an 80% growth against this year's production that we estimate is 1,003,000 tons of copper. Projects in Peru We continue to work on various projects in Peru, with a total capital investment of US$2.90 billion, US$1.70 billion of which has already been invested. Toquepala Expansion Project, Tacna.- This US$1.25 billion project includes a new, state-of-the-art copper concentrator that will expand annual copper production by 100,000 tons to total 258,000 tons of production in 2019, translating into a 74% increase. As of September 30, 2018, we had invested US$1.19 billion, and we have completed the expansion. We are in the operational testing phase with loading, while production will start in 4Q18. Tia Maria- Arequipa.- We have completed all the engineering and have complied with all environmental regulation, thus obtaining approval of the Environmental Impact Assessment. We are working together with the government of Peru to obtain the construction permit initiate operations in 2019 for this growth project worth 120,000 annual tons of SX/EW metallic copper that does not require combustion processes and that will use 100% of desalinated seawater with an investment of US$1.4 billion. The company expects the project to generate 3,600 new jobs during its construction phase. When in operation, Tia María will directly employ 600 works and 4,200 indirectly. We expect the license to be issued on December 2018. Projects in Mexico Buenavista Zinc, Sonora.- This project is located within the Buenavista deposit in Sonora, and comprises the construction of a concentrator with a production capacity of 80,000 tons of zinc and 20,000 additional tons of copper annually. To date, the basic engineering has been completed and we are working on the detailed engineering stage of the project. The budget for this investment is US$413 million, and it should be operational by 2020. Once the project is completed, the Mining Division’s zinc production will double. Pilares, Sonora.- This project is located in Sonora, 6 km away from the La Caridad mine, and it has an open-pit mine, with an annual production capacity of 35,000 tons of copper concentrates. To date, the engineering for the construction of the road between the Pilares pit and the La Caridad primary crushing plants has been completed, and work continues on the mining plan and the design of the Pilares pit. The investment budget is US$159 million, and it should begin operations in 2020. _____________________________________________________________________________________________________________________ 3Q18– 9M18 www.gmexico.com Page 2 WorldReginfo - 9bf2d452-4b92-4f51-adef-71e709f0d65e 3Q18 RESULTS GRUPO MÉXICO Projects in the US Asarco, Arizona.- The project to modernize the Hayden smelting facility in Arizona to comply 100% with the authorities’ new environmental regulation of Environmental Protection Agency, with an investment of US$229 million, has been completed. The smelting facility has state-of-the-art technology in its converter furnaces and the collection and management of gasses and dusts. This will result in greater efficiency and reach its new design capacity of 630,000 tons per year of copper concentrate smelting. At present, we are at the startup stage, achieving 80% capacity, and expect to reach 100% capacity during 4Q18. Mission, Arizona, USA.- On March 21, we suffered a landslide on the slopes of the Mission mine. To date, the corresponding authorities have authorized a return to normal operations. We expect production at the Mission mine to recover by 4Q18. Projects in Spain Aznalcóllar, Andalucía.- This project is located only 35 km from the city of Seville in Spain. During 2017, we carried out an intense exploration campaign whose results confirm the reserves and hint at a greater potential and appeal of the mineral ore than was originally estimated. Currently, we are in the process of obtaining the environmental and operating permits from the authorities. We are working on the feasibility studies, which we will complete by the end of the year; the detailed engineering will begin in the fourth quarter of 2018. The estimated investment for this project is US$290 million to begin operations in 2022, and it will enable Grupo’s annual production to grow by 105,000 tons of zinc equivalent. _____________________________________________________________________________________________________________________ 3Q18– 9M18 www.gmexico.com Page 3 WorldReginfo - 9bf2d452-4b92-4f51-adef-71e709f0d65e 3Q18 RESULTS GRUPO MÉXICO Relevant Events Transportation Division EBITDA Margin Expansion continues.- During 3Q18, GMXT’s EBITDA reached US$265 million—4% more than in 3Q17 with a 44% margin.
Load more

Recommended publications
  • An Update on Security, Migration, and U.S. Assistance November 2015
    An Update on Security, Migration, and U.S. Assistance By Adam Isacson, Senior Associate for Regional Security; Maureen Meyer, Senior Associate for Mexico and Migrant Rights; and Hannah Smith, Program Assistant November 2015 Key Findings migration crackdown has been changes in how migrants are traveling. With decreased possibilities of boarding the train in Chiapas, migrants and smugglers are now relying on different and dangerous routes and modes of transportation, including by foot, vehicle, and boat. These routes expose migrants to new vulnerabilities while simultaneously isolating them from the network of shelters established along traditional routes. Raids and operations to prevent migrants from riding atop cargo trains, known collectively as La Bestia, have been the most visible and aggressive enforcement efforts under the Southern Border Program. Migration authorities have blocked migrants from boarding trains, pulled migrants off of trains, and raided establishments that migrants are known to frequent, detaining thousands. The train operations have prompted concerns about excessive use-of-force and other abuses by the authorities involved. U.S. assistance to help Mexico secure its southern border region has increased, though there is limited transparency regarding dollar values, recipient units, equipment, and training. Additionally, some of the U.S.-donated equipme has seen little use and was reported to be ill-suited for the terrain in this region. For example, U.S.-donated observation towers serve little purpose at the densely forested Mexico-Guatemala border. U.S.-donated biometric data equipment was also observed to be in disuse or only used sporadically. The Southern Border Program brought an increase in mobile checkpoints, and new customs facilities have opened since its launch.
    [Show full text]
  • Corredor Transístmico De Tehuantepec Como Alternativa Al Canal De Panamá”
    UNIVERSIDAD AUTÓNOMA DEL ESTADO DE MÉXICO UNIDAD ACADÉMICA PROFESIONAL CUAUTITLÁN IZCALLI “CORREDOR TRANSÍSTMICO DE TEHUANTEPEC COMO ALTERNATIVA AL CANAL DE PANAMÁ”. TESINA QUE PARA OBTENER EL TÍTULO DE LICENCIADO EN NEGOCIOS INTERNACIONALES PRESENTA: AMAURI VIEIRA OROZCO ASESOR: LIC. EN R. I. MARY CRUZ GÓMEZ CORTES CUAUTITLÁN IZCALLI, ESTADO DE MÉXICO. DICIEMBRE DE 2018 RESUMEN. Desde la época de la Conquista en el siglo XVI, el Istmo de Tehuantepec pasó a ser una zona de interés para los españoles debido a su posición geográfica y su estrechez, sin embargo, se dieron por mejores opciones Panamá y Nicaragua, más adelante en el siglo XIX Estados Unidos de Norteamérica puso su atención en la región del Istmo, ambicionando lo mismo que los españoles y que después de la guerra contra México quiso aprovechar como moneda de cambio para que existiese la paz, en contraste ese convenio que detallaba el libre tránsito americano nunca tuvo ratificación en su senado y por ende falta de validez, años más tarde aparecieron personajes que reclamaban tener la posesión de la región como José Garay un ex funcionario mexicano que tenía la concesión para poder construir el tan anhelado paso interoceánico, sin embargo por el poco presupuesto mexicano para desarrollarlo decide ofrecerlo a compañías americanas, que se darían a conocer en 1907 cuando Porfirio Díaz desarrolla las vías ferrocarrileras e inaugura el paso por el Istmo de Tehuantepec. Ya en el siglo XXI México ha decidió retomar un proyecto que ha tenido distintos nombres, necesaria es la infraestructura ya que representa progreso y desarrollo no sin antes conocer la región Istmeña y sus características, sociales, culturales y económicas, así como lo que la implementación de las Zonas Económicas Especiales representa para su evolución.
    [Show full text]
  • GMXT Initiation of Coverage September 28, 2018
    Equity Research Me xico GMXT Initiation of Coverage September 28, 2018 www.banorte.com Railway system leader with attractive valuation @analisis_fundam . We are initiating coverage on Grupo México Transportes (GMXT), with a PT 2019 of MXN$37.00, which represents a FV/EBITDA 2019e Marissa Garza of 8.8x (vs 8.6x current) with a BUY recommendation Mining/Chemicals/Industrials/Financials/Railways [email protected] . GMXT is GMexico’s transportation subsidiary and the leading operator of rail services in Mexico, as well as the largest railway BUY regional owner of the US in the east coast of Florida (FEC) Current Price MXN$31.00 PT2019 MXN$37.00 . It holds a strategic position, first class assets, a diversified portfolio, Dividend 2019 MXN$1.20 solid customer base, favorable growth and profitability perspectives Dividend (%) 3.8% along with an attractive valuation Upside Potential 23.2% Max – Mín LTM 36.01-25.63 Market Cap (USD$m) 6,714.2 It stands as the only investment vehicle of its kind in Mexico, with solid Shares outstanding (m) 4,100.6 outlooks and an attractive valuation. GMXT shares stand as the only Float 30.0% Daily Turnover (MXN$m) 25.3 vehicle in Mexico to invest in the rail system and also post attractive growth Valuation Metrics LTM * opportunities and profitability improvements that, in our view, its current FV/EBITDA Adj 8.6x P/E 19.0x valuation still does not reflect. Its strategic position, coupled with an experienced management team and important investments in world-class assets, have allowed it to be the leader in the industry, with a market share Relative performance to MEXBOL (LTM) close to 65%.
    [Show full text]
  • Alabama Rail Directory
    Photo by WILLIAM MARTIN Alabama Rail Directory Bureau of Transportation Planning and Modal Programs June 2014 2013 Alabama Rail Directory Prepared for Alabama Department of Transportation Bureau of Transportation Planning and Modal Programs Prepared by J. R. Wilburn and Associates, Inc. June 2014 2013 Alabama Rail Directory Alabama Department of Transportation TABLE OF CONTENTS THE RAILROADS IN ALABAMA Introduction .............................................................................................................. 1 Map of the Railroads in Alabama .................................................................................. 2 CLASS I RAILROADS IN ALABAMA Burlington Northern Santa Fe Railway Co. (BNSF) .......................................................... 4 Canadian National Illinois Central (CN/IC) ................................................................... 11 CSX Transportation, Inc. (CSXT) ................................................................................ 14 Norfolk Southern Corporation (NS) ............................................................................. 18 CLASS II (REGIONAL) RAILROADS IN ALABAMA Alabama & Gulf Coast Railway, LLC (AGR)^................................................................. 25 CLASS III (SHORTLINE/LOCAL) RAILROADS IN ALABAMA Alabama & Tennessee River Railway, LLC (ATN) ........................................................... 29 Alabama Railroad Co. (ALAB) ..................................................................................... 31 Alabama
    [Show full text]
  • Fourth Quarter and 2020 Annual RESULTS
    Fourth Quarter and 2020 Annual RESULTS Mexico City, January 26th, 2021 Grupo México, S.A.B. de C.V. (“Grupo México” “GMéxico” - BMV: GMEXICOB) Just as w e have been doing since the beginning of the pandemic, Grupo M éxico will continue to operate its Three Divisions with the corresponding measures to safeguard its employees’ health, by applying safe distance measures, using facemasks, and following all the health standards set in place by the local authorities of the countries in which we operate. Grupo Mexico’s industrial activities generate minimum risks as most of them are performed outdoors, and by one person or by a small number of highly qualified collaborators. Accrued revenues during 2020 totaled US$10.91 billion—a record figure in Grupo México’s history—2.1% higher than in 2019 and 22.1% higher in 4Q20 compared to 4Q19. The Mining Division’s revenues totaled US$8.57 billion in 2020, 7.5% higher than in 2019, and 35.5% higher in 4Q20 vs 4Q19, due to higher volumes produced—Copper (+1%), Molybdenum (+12.5%), and Silver (+10%)— in addition to a favorable environment in the prices of Copper (+2.9%), Silver (+27.6%), and Gold (+27.1%), In the Transportation Division, revenues dropped 12.7% during 2020, totaling US$2.15 billion due to reduced volumes caused by the pandemic. The Infrastructure Division achieved accrued net revenues of US$528 million—a 9.0% decrease in the year due to an adjustment in the daily rates in PEMSA and the effects on Construction and Highways that resulted from the health contingency.
    [Show full text]
  • Rail Harmonization in Mexico and North America: Implications for Agriculture
    RAIL HARMONIZATION IN MEXICO AND NORTH AMERICA: IMPLICATIONS FOR AGRICULTURE Barry E. Prentice,Wade Derkson and Arnold Maltz INTRODUCTION The North American railway landscape has changed significantly and irreversibly in the last few years. A "NAFTA railroad" has emerged with the acquisition of the Illinois Central (IC) by Canadian National (CN) and the subsequent marketing agreement with the Kansas City Southern (KCS). The largest Canadian railway, itself privatized only a few years ago, now offers single-line access to the Mexican market with the privatized Transportacion Ferroviario Mexicano (TFM). From a shipper's perspective, the new map of North America increasingly resembles a hyperlinked web page, "with the shipper able to start anywhere and end up in places he or she never imagined." (Possehl, 1998). Few North American shippers would have imagined a railway system that could include the much- maligned Mexican rail links. However, the once disparate parts of the North American rail network have re-emerged under private control with the promise of integrating NAFTA trade, and in particular, the trade of agricultural products. This paper examines the implications of the Mexican rail concessions for NAFTA trade of agricultural products. Specifically the paper focuses on whether or not privatization, particularly of the rail links in the Northeast (TFM) and the Pacific North (Ferromex), are likely to support overland movement of agricultural products within the three NAFTA signatories. The effect of rail privatization on freight rates is especially important because the geographic flow patterns of low-valued bulky agricultural commodities such as grains are sensitive to transport and logistics costs.
    [Show full text]
  • CG Railway, Inc. 1000Th Sailing Tracks Across the Gulf
    CG Railway, Inc. 1000th Sailing Tracks Across the Gulf Mobile, Alabama, August 29, 2014 – CG Railway, Inc., a wholly-owned subsidiary of International Shipholding Corporation (NYSE: ISH), announced that its Rail Ferry Service between the United States and Mexico reached a milestone today with the sailing of its 1000th voyage. CG Railway’s Short Line service commenced in January of 2001 with two Rail Ferry vessels providing a short sea alternative to overland rail routes originating in the Eastern United States and bound for Central and Southern Mexico. Travelling between Mobile, AL and Coatzacoalcos, Mexico, the service expanded in 2007 from a single-deck operation to a double- deck operation, increasing the onboard capacity of each vessel to an average of 115 railcars. Since that time, the expanded CG Railway Short Line service has consistently delivered the highest levels of performance and customer service while handling increasing cargo volumes. CG Railway connects to U.S. Class 1 and short-line railroads serving the Port of Mobile, AL via the Alabama State Port Authority Terminal Railway (TASD), as well as the Ferrosur railroad serving the port of Coatzacoalcos in Mexico. CG Railway offers competitive and expedient solutions for the transportation of a variety of goods moving by rail to and from Mexico, including forest products, chemicals, minerals, metals, agricultural products and – starting in the 1st quarter of 2015 – refrigerated freight. CG Railway service cuts across the Gulf of Mexico, rather than the U.S./Mexico border crossings, increasing forward visibility and saving valuable time in the supply chain. Kevin Wild, Senior Vice President of CG Railway, said, “By providing an efficient short sea solution that facilitates trade from the U.S.
    [Show full text]
  • Connecting North America for Prosperity and Security
    20 Annual 17 Report CONNECTING NORTH AMERICA FOR PROSPERITY AND SECURITY KANSAS CITY SOUTHERN Kansas City Southern is a transportation holding company with two primary subsidiaries. The Kansas City Southern Railway Company is one of seven Class I railroads operating in the United States. Kansas City Southern de México, S.A. de C.V. is one of two large regional railroads in Mexico. KCS also owns 50% of the Panama Canal Railway Company in Panama. The combined North American rail network comprises approximately 6,700 route miles that link commercial and industrial markets in the United States and Mexico. 2017202 02017202 0 17 7FINANCIAL FINANCIALF INN ANA N CCIALA HIGHLIGHTSL HHIGHLIGHTSIGG HLH L IGG H TST In millions, except share and per share amounts. Years ended December 31. 2017 2016 2015 2014 OPERATIONS Revenues $ 2,582.9 $ 2,334.2 $ 2,418.8 $ 2,577.1 Operating income 921.6 818.5 803.8 809.1 Net income attributable to Kansas City Southern and subsidiaries 962.0 478.1 483.5 502.6 PER COMMON SHARE Earnings per diluted share $ 9.16 $ 4.43 $ 4.40 $ 4.55 CLOSING STOCK PRICE RANGES Common - High $ 113.44 $ 99.47 $ 120.42 $ 125.88 Common - Low 80.82 64.35 70.01 91.12 4% Non-Cumulative Preferred - High 29.50 28.99 28.85 29.00 4% Non-Cumulative Preferred - Low 26.75 25.40 25.25 24.15 FINANCIAL CONDITION Total assets $ 9,198.7 $ 8,817.5 $ 8,341.0 $ 7,976.4 Total debt, including short-term borrowings 2,619.4 2,478.2 2,401.1 2,301.4 Total stockholders’ equity 4,548.9 4,089.9 3,914.3 3,755.5 Total equity 4,865.4 4,404.5 4,224.7 4,064.1 COMMON STOCKHOLDER INFORMATION AT YEAR END Stockholders of record 2,141 2,233 2,289 2,512 Shares outstanding (in thousands) 103,037 106,607 108,461 110,392 Average diluted shares outstanding (in thousands) 105,040 107,761 109,915 110,433 LETTER TO OUR By almost any standard, 2017 was one of the best years in STOCKHOLDERS Kansas City Southern’s (“KCS”or“the Company”) 130-year history.
    [Show full text]
  • Renacimiento De Los Ferrocarriles Mexicanos De Carga
    Renacimiento de los ferrocarriles mexicanos de carga Balance de la privatización al año 2010 Septiembre 2011 2 3 Elaborado por Francisco J. Gorostiza por encargo de la Asociación Mexicana de Ferrocarriles. 4 1.- Resumen ejecutivo El propósito de este trabajo realizado por la Asociación Mexicana de Ferrocarriles (AMF), es hacer un balance de los logros alcanzados por el sector ferroviario mexicano, a quince años del inicio del proceso de su privatización, cuyo desempeño ha sido muy exitoso a nivel internacional y constituye un verdadero renacimiento de este importante modo de transporte. 5 Diversos problemas de los ferrocarriles mexicanos se gestaron durante el nacimiento de las empresas privadas extranjeras, en la segunda mitad del Siglo XIX, y dieron lugar a la creación en 1908 de los Ferrocarriles Nacionales de México (FNM), con participación estatal mayoritaria. La Revolución Mexicana provocó una enorme destrucción de la red ferroviaria, frenó su desarrollo, hubo abusos y se establecieron prácticas administrativas imposibles de erradicar, permaneciendo latentes hasta finales del Siglo XX. Los esfuerzos de reconstrucción y para hacer frente a la deuda acumulada, no impidieron la necesidad de su expropiación en 1937. Después de la terminación de la Segunda Guerra Mundial, en el país se estableció la llamada política de estabilidad económica, consistente en promover la industrialización y sustitución de importaciones, entre otras cosas, a partir del sostenimiento de precios bajos de los servicios públicos. Hubo grandes inversiones en reconstrucción de vías y compras excesivas de locomotoras y carros. El tráfico de carga creció con una capacidad superior a la necesaria, con enormes subsidios y endeudamiento creciente.
    [Show full text]
  • Anti-Trust Regulator Rules Against Merger of Leading Rail Companies LADB Staff
    University of New Mexico UNM Digital Repository SourceMex Latin America Digital Beat (LADB) 5-22-2002 Anti-Trust Regulator Rules Against Merger of Leading Rail Companies LADB Staff Follow this and additional works at: https://digitalrepository.unm.edu/sourcemex Recommended Citation LADB Staff. "Anti-Trust Regulator Rules Against Merger of Leading Rail Companies." (2002). https://digitalrepository.unm.edu/ sourcemex/4514 This Article is brought to you for free and open access by the Latin America Digital Beat (LADB) at UNM Digital Repository. It has been accepted for inclusion in SourceMex by an authorized administrator of UNM Digital Repository. For more information, please contact [email protected]. LADB Article Id: 53095 ISSN: 1054-8890 Anti-Trust Regulator Rules Against Merger of Leading Rail Companies by LADB Staff Category/Department: Mexico Published: 2002-05-22 The government's anti-monopoly commission (Comision Federal de Competencia, CFC) has ruled against a proposed merger between Ferrocarril Mexicano (FERROMEX) and Ferrocarril del Sureste (FERROSUR), Mexico's second- and third-largest private rail companies. FERROMEX is a subsidiary of mining company Grupo Mexico and FERROSUR is a unit of business conglomerate Grupo Carso. The two rail companies first proposed the deal in late January to consolidate FERROMEX's northwest operations with FERROSUR's southeastern routes (see SourceMex, 2002-02-06). In proposing the merger, the two rail companies argued that the consolidation of their operations would increase efficiency in Mexico's rail system and create increased competition by creating an alternative to Mexico's leading rail company, Transportes Ferroviarios Mexicanos (TFM), a subsidiary of ocean transport giant Transportacion Maritima Mexicana (TMM).
    [Show full text]
  • Grupo Mexico Maturities As of March 31St, 2017
    RESULTS FIRST QUARTER RESULTS 2017 FirstGRUPO Quarter MÉXICO 2017 Relevant figures in US dollars1 Contact: Marlene Finny Mexico City, May 3, 2017. (55) 1103-5344 Grupo México, S.A.B. de C.V. (“Grupo México” “GMéxico” - [email protected] BMV: GMEXICOB). www.gmexico.com Revenues in 1Q17 totaled US$2.3 billion, 18% higher than 1Q16 mainly due to higher copper prices +25%. In the Transportation Division, volumes decreased 3% compared to 1Q16 so revenues dropped 6%. The Infrastructure Division´s revenues decreased 2% to US$149 million due to lower rates In the Mining Division, we consolidated ourselves again as the Company with the lowest cash cost worldwide. In 1Q17, the copper cash-cost per pound reached US$1.07, an improvement of 3% when compared with 1Q16. Copper sales volumes reached 257,278 tons in 1Q17, a 3% increase compared to 1Q16, copper production reached 247,015 tons during the quarter. EBITDA for 1Q17 totaled US$978 million, 34% greater than 1Q16. The Mining Division reached US$769 million, translating into 53% growth vs. 1Q16. The Transportation Division reached US$171 million, a 2% drop vs. 1Q16. The Infrastructure Division achieved US$64 million in EBITDA. Cost of sales in 1Q17 reached US$1.2 billion, 11% more than in 1Q16. In the Mining Division, costs increased 14% due to higher input prices. In the Transportation Division, it decreased 1% thanks to greater operational efficiencies. In the Infrastructure Division, it dropped 3%. The consolidated net profit in the quarter reached US$42 million, a 4% growth when compared to 1Q16.
    [Show full text]
  • Freight Railway Development in Mexico
    Freight Railway Development in Mexico Mexico has seen a transformation of its freight railway in the last fi fteen years, from a declining operation increasingly dependent on large government subsidies, to a very productive and technologically improved system that operates profi tably without public subsidy. The country’s rail system is now a key driver in the cross-border integration of the manufacturing sector that has developed under the North American Free Trade Agreement and the productivity benefi ts this generates for the region. The performance of the Mexican rail system is therefore of strategic importance not only to Mexico but to North America as a whole. Eff ective competition within railways and with other modes of transport has a strong positive infl uence on cost effi ciency, tariff s and rail service quality. At the same time, the nature of railway cost structures suggest that unconstrained head-to-head competition between operators on the same tracks can lead to some loss of operational economies of scale and scope. This study reviews the performance of Mexico’s freight railways and the strengths and weaknesses of the current framework for competition in rail freight. It examines the commercial and public policy objectives for the sector and the performance of the national industry over time. It also benchmarks performance against railways in other Freight Railway countries with a similar market potential for rail transport. This report is part of the International Transport Forum’s Country Specifi c Policy Development Analysis (CSPA) series. These are topical studies on specifi c transport policy issues of concern to a country carried out by ITF on request.
    [Show full text]