Mexico's Mexichem posts Q4 loss as costs surge

Wed Feb 27, 2013 8:56pm EST

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MEXICO CITY Feb 27 (Reuters) - Mexican plastic pipe and chemical maker Mexichem slid into the red in the fourth quarter, as a jump in costs outweighed gains in revenue.

Mexichem booked a net loss of 79.3 million pesos ($6.1 million) in the October-December period, down from a 103 million peso net profit in the same period a year earlier.

Quarterly revenue rose 38 percent to 14.4 billion pesos but the cost of sales rose 44 percent to 9.9 billion pesos while general costs rose 72 percent to 4 billion pesos.

Prior to the release of the results, Mexichem shares fell 0.2 percent to 64.88 pesos on Wednesday. The stock has slumped from near a record high in early February after it reported weaker-than-expected fourth-quarter preliminary revenue.