(Updates with context on copper and transport division)
By Kylie Madry
MEXICO CITY, April 26 (Reuters) - Mining and transport
conglomerate Grupo Mexico on Wednesday posted an
8% jump in its first-quarter net profit, beating estimates
thanks to its transport subsidiary even as its mining segment
lost ground, hit by lower copper prices.
Grupo Mexico's net profit came in at $1.1 billion, ahead of
the $873.4 million estimated by analysts polled by Refinitiv,
which the firm attributed to "record" results in its transport
arm and strong earnings in its infrastructure division.
Grupo Mexico, one of the world's largest copper miners with
freight railroads across Mexico, United States, Peru and Spain,
also reported revenue for January to March up 2.6% from a year
earlier at $3.86 billion.
The transport division saw growth across the board, shipping
record volumes, primarily in the agricultural sector, which
boosted the segment's revenue 18.3%.
However, Grupo Mexico's mining division saw revenue slip
1.1% compared to the same period a year earlier, which the firm
attributed primarily to lower copper prices even as operations
in Peru helped boost output 3.6% over the quarter.
Peru has seen months of deadly protests amid an extended
political crisis, but a Peruvian minister told Reuters in March
that mines were starting to transport copper concentrate to
ports for export once again.
Grupo Mexico, which owns Southern Copper - one of
the world's biggest copper producers - said that despite the
higher output, prices for the red metal had dipped nearly 10%
from a year earlier.
The company also trimmed its 2023 investment plan to $1.76
billion, down from the $1.83 billion it had previously planned.
Grupo Mexico's earnings before interest, tax, depreciation
and amortization (EBITDA) for the quarter came in at $2.11
billion, down 4.5% but beating the $2.04 billion forecast by
analysts in polled by Refinitiv.
The conglomerate is controlled by billionaire German Larrea,
one of Mexico's richest entrepreneurs, and is reportedly one of
the bidders to acquire Banamex, the local retail banking arm of
U.S. lender Citigroup .
(Reporting by Kylie Madry and Carolina Pulice; Writing by
Valentine Hilaire; Editing by Sarah Morland and Stephen Coates)
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