Grupo Mexico posts 16% drop in Q1 net profit as metals prices fall

Grupo Mexico plans $3.1bn Baja, refining spend
Image: Grupo Mexico

Mining and transport conglomerate Grupo Mexico reported on Thursday a 16% drop in its first-quarter net profit, falling to $928.5 million, dragged mainly by lower sales in its mining division due to lower copper, molybdenum and zinc prices.

Revenue for the major global copper producer, which also operates sprawling freight railroads in Mexico, slid 1.6% in the quarter to total $3.8 billion.

Sales in the mining division fell 7.4% from the year earlier, while revenues in the transport division grew 16.1%.

Meanwhile, consolidated earnings before interest, tax, depreciation and amortization (EBITDA) fell 6.6% to total $1.97 billion.

Grupo Mexico is one of the world’s largest copper producers, with mines in Peru, the United States, Spain and its home base of Mexico. The firm is controlled by billionaire German Larrea.

(By Valentine Hilaire; Editing by Kylie Madry)


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