Category: Chile

Chile’s consumer prices rose .9 percent in April, the fastest monthly increase in more than two years after transport costs surged. Chile’s inflation rate rose to 2.9 percent in the twelve months through April. The central bank has increased its benchmark lending rate five times since September when the rate was 1.75 percent, a record low.

Chile’s state-owned copper company Codelco plans to boost investment 25 percent at its largest mine next year to expand output for China, the world’s biggest copper consumer and the company’s number one customer. Spending at Codelco’s northern division will rise to about $1 billion from $800 million this year, part of a plan to increase output almost 22 percent by the end of 2008. Copper prices currently stand at $1.44 a pound, more than double the 14-year low of $.60 a pound in November 2001.

Chilean private copper mining company Minera Escondida posted a net profit of $453 million for the first quarter, up 3% year-on-year. The company’s operating profit rose to $565 million and revenues increased to $823 million from $794 million a year earlier. Escondida, like Chile’s state-owned copper company Codelco, has benefited from strong copper demand in China and the United States.

Chilean airline group Lan reported $46 million in first quarter net profits, down only slightly from $48 million in the March 2004 quarter. The company said increased oil prices added $37 million to its fuel bill, cutting into profits. Operating revenues were up almost a quarter at $608 million and operating expenses rose nearly 30% to $551 million. Lan expects its latest venture, Lan Argentina, to begin flights in the second quarter.

Forestry group Celulosa Arauco, a unit of Chilean conglomerate Empresas Copec, posted a net profit of $127 million for the first quarter of 2005, up 15 percent year-on-year. The unit’s revenue grew to $557 million, up 26 percent. Celulosa Arauco recently announced plans for a $300 million bond issue.

Chile’s state-owned copper giant Corporacion Nacional del Cobre (Codelco) posted a net profit of $389 million for the first quarter of 2005, up 87 percent year-on-year. The company’s revenues rose $396 million to $2.26 billion, boosted by high copper prices. Copper prices on the London Metal Exchange stood at $1.48 per pound on March 31, 2005, up from $1.24 per pound in the same period a year earlier.

Chilean state-owned copper producer Codelco is backing away from the idea of selling stock to the public in a partial privatization. Executive President Juan Villarzú says he has given up on the idea he floated earlier this year, arguing that the government cannot alone finance the company’s multi-billion dollar investment plans. Codelco’s investment plan for the period 2005-2012 will cost $13 billion- $17 billion.

Chile posted a trade surplus of $770 million from April 1 to 15, with exports at $1.97 billion and imports at $1.20 billion. Copper exports stood at $475 million. Chile is the world’s largest copper producer, accounting for one third of global copper output.

Telefónica CTC Chile, the Chilean unit of Spanish telecom giant Telefónica, posted net profit of $14 million for the first quarter, up 127% year-on-year. The company says its stronger performance was due to its success in the broadband market and ability to retain customers, which had previously been a problem for the company.

Chile’s trade surplus stood at $6.1 billion, up 31 percent year-on-year. The leading exports were copper, fresh fruits, cellulose and salmon. Chilean exports to Asia grew 46 percent, exports to the Americas increased 26 percent and sales to Europe rose 16 percent.