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UPDATE 1-Mexican construction firm ICA posts $38.6 mln loss in Q2
July 27, 2013 / 12:00 AM / in 4 years

UPDATE 1-Mexican construction firm ICA posts $38.6 mln loss in Q2

MEXICO CITY, July 26 (Reuters) - Mexican construction company ICA reported a 500.9 million peso ($38.6 million) net loss in the second quarter due to a weaker peso and higher financing costs, the company said in a filing with the Mexican stock exchange on Friday.

The company reported 8.21 billion pesos in revenue for the quarter, down 13 percent compared with the year-earlier period.

Construction revenue tumbled 35 percent to 4.61 billion pesos.

ICA said its financing costs rose to 2.46 billion pesos during the quarter, more three times the amount the company paid in the second quarter of 2012, due to the depreciation of the peso and higher debt.

Earlier in the month, ICA Chief Executive Alonso Quintana said the company will still take part in an expected windfall of up to $70 billion annually in new Mexican government infrastructure projects.

The company’s credit rating was downgraded further into junk status in May as some of its existing projects have been slow to start running.

ICA’s shares closed 1.86 percent lower at 23.80 pesos before the company reported its second-quarter results.

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