MEXICO CITY, April 26 Mexican copper miner and
railroad operator Grupo Mexico reported on Friday
first-quarter profit of $601 million, down 15.4 percent compared
with the same period last year on lower sales and a drop in
Grupo said revenues for the January-March period were $2.46
billion, down 10.5 percent from the year-earlier quarter,
according to a filing with the Mexican stock exchange.
Grupo Mexico's sales fell 15 percent to $1.96 billion, down
from $2.31 billion during the same period last year.
The company said lower metals prices during the quarter,
driven in part by European economic woes and lower demand from
China, contributed to the drop in profit.
Copper prices dropped by 5 percent, silver by 8 percent, and
molybdenum by 20 percent, compared with average prices during
the first quarter of 2012.
"In the short term, (metals) prices will continue to be
influenced by macroeconomic news from across the world, but we
think that the fundamentals of the industry have not changed and
will remain solid during 2013," the company said in its filing.
Grupo Mexico added that capital investments in its mining
division increased by 84 percent during the quarter, totaling
Copper production in the quarter was down 3 percent, to
nearly 195,000 tonnes.
Late last month, the company said it expects to produce
850,000 tonnes of copper this year, a volume that would allow
Grupo Mexico to become world's second-biggest copper producer by
Grupo Mexico's share price closed 1.55 percent lower at
42.52 pesos per share on Friday, before the company reported its