(Adds comment from conference call, debt figure)
MEXICO CITY, March 30 Mexico's ICA posted a
fourth-quarter net loss more than five times higher than in the
same period a year earlier, as the embattled construction
company won fewer contracts and its debt soared.
ICA, which has not posted a quarterly profit since
2013, on Wednesday said it lost 10.591 billion pesos ($615
million) in the October to December period, compared to 2.082
billion pesos a year earlier.
Revenue halved in the quarter compared to a year ago, while
the cost of sales rose more than 70 percent, pushing it to an
The former industry leader has defaulted on about $60
million of interest payments since December, replaced its chief
executive and hired investment bank Rothschild to come up with a
debt restructuring plan by March.
But the restructuring plan is still underway, CFO Pablo
Garcia said in a brief conference call. Executives did not
In its results statement, the company said it has fired more
than half its workforce since the end of 2014 and cut costs by
ICA has failed to win new construction contracts to service
its debt, which rose sharply after a drop in the value of
Mexico's peso against the dollar.
However, it did manage to secure a new loan in February to
finish one of its larger highway projects.
The company said the fall in profit was due to weaker
construction revenues, the exchange rate and restructuring
provisions on certain projects.
By the end of 2015, total consolidated debt had risen to
67.6 billion pesos, 7 percent higher than a year earlier.
The company's creditors have been seizing ICA's shares in
airport operator OMA as collateral on loans that came
due after the default.
That helped lower total debt to 62.313 billion Mexican pesos
by the end of this month.
The company has also prepared a bankruptcy protection filing
as a precaution, Reuters reported.
ICA said it is now focusing its efforts on defining a
($1 = 17.212 pesos at end-December)
(Reporting by Christine Murray, Gabriela Lopez and Alexandra
Alper; Editing by W Simon and James Dalgleish)