MEXICO CITY, July 15 Mexican industrial
conglomerate Alfa said on Monday its second-quarter
profit fell, hurt by a weaker Mexican peso and one-off charges
related to a factory sale at its petrochemical unit, Alpek
The company said second-quarter profit slipped to 49.307
million pesos ($3.8 million) from 1.512 billion pesos in the
year-earlier quarter, largely because of 2.353 billion pesos in
charges related to its planned closure of a U.S-based factory.
Alpek said last month it would end operations at a plant in
Cape Fear, North Carolina, that makes plastics for packaging as
well as polyester.
The company hopes to generate $30 million in annual savings
by closing the plant and transferring production to more
efficient sites, Alfa's statement said.
Alfa does not expect to close any more plants, Chief
Financial Officer Ramon Leal told journalists on a call.
The company's consolidated revenue in the local currency
fell 1.3 percent to 50.877 billion pesos, although revenue in
U.S. dollars rose 6 percent to $4.07 billion, the company said.
The Monterrey-based company said in dollar terms revenue at
petrochemical unit Alpek fell, hurt by weaker margins on
products such as polyester, as well as power outages at plants
Alfa's auto parts and telecommunications businesses reported
higher U.S. dollar revenue in the second quarter, but it was not
enough to offset weakness at Alpek.
The company's shares closed up 2.48 percent at 32.25 pesos
before the results.