UPDATE 1-Mexico's ICA shares up, market eyes revenue gains

Tue Mar 2, 2010 2:46pm EST

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MEXICO CITY, March 2 (Reuters) - Shares of Mexican construction company ICA (ICA.MX) rose sharply on Tuesday, driven by solid quarterly revenue growth and participation in big infrastructure projects.

ICA rose 4.06 percent to 29.99 pesos in afternoon trading.

The company on Monday posted a 574 million-peso loss in the quarter that ended in December because of higher taxes. Revenue in the period rose 13 percent from a year earlier.

"Despite the tax payment ... that ICA will have to meet in 2010 related to the fiscal reform, we maintain our positive perspective for the company and think it will remain competing strongly (in the market) this year," IXE brokerage said in a report.

Companies will continue to create provisions for higher taxes this year in the wake of President Felipe Calderon's fiscal reform package that went into effect in January.

ICA executives said on an analyst call that they expect up to $12 billion civil and industrial construction projects that will be available through tenders in the next year and a half. (Reporting by Cyntia Barrera Diaz, editing by Maureen Bavdek and Robert MacMillan)

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