Mexico's ICA holds view, sees more projects in H2
MEXICO CITY, July 29
MEXICO CITY, July 29 (Reuters) - ICA, Mexico's top construction company held its growth view for 2010 on Thursday as it lines up big infrastructure projects, from highways to a refinery, for the second half of the year.
ICA (ICA.MX) (ICA.N) had forecast in April revenue growth of between 15 and 20 percent this year and earnings before interest, tax, depreciation and amortization (EBITDA) growth in a range of 16 to 18 percent.
"We are still standing by our guidance for 2010, we are very close to being where we should be to deliver it," Chief Financial Officer Alonso Quintana told analysts during a conference call.
"The next semester definitely looks pretty bright," he said, adding that ICA hopes to add four to five roads, a refinery, aqueducts and a water treatment plant to its construction pipeline, known as backlog.
Quintana said that while industrial construction is "packed with work" it can take several months before those projects can kick off as the company has to do a lot of research, planning, and exchange views with the clients in advance.
Asked about ICA's plans for its airport business -- it controls Mexican airport operator OMA (OMAB.MX) -- Quintana said it was a long-term investment and did not plan to sell any assets soon.
"We are not actively searching for a buyer ... (but) that doesn't mean we are not open to good deals that give us cash to keep growing in other sectors," Quintana said.
ICA posted on Wednesday a 12 percent fall in second-quarter net profit from a year earlier, hurt by financial costs. But civil construction and its airport business drove revenues up 18.5 percent in the period.
Its shares were down 0.19 percent at 31.65 pesos on Thursday. (Reporting by Cyntia Barrera Diaz; editing by Gunna Dickson)
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