Category: Regions

Mexico´s Coca-Cola FEMSA, the world’s second largest Coca Cola bottler, reported a net profit of $121 million in the second quarter, down 28 percent year-on-year. The company attributed the decrease to a nonrecurring profit received in the same period of 2004. FEMSA’s revenue increased 11 percent year-on-year to $1.2 billion. Coca-Cola FEMSA is a unit of Mexico’s largest beverage company Fomento Economico Mexicano (FEMSA).

Mexican brewing giant Grupo Modelo´s net profit rose 30 percent in the second quarter to $370 million. Total sales rose 3.5 percent to $1.25 billion while domestic revenues were up 5.2 percent. Grupo Modelo produces popular beers Corona, Pacifico and Negra Modelo.

America Movil, controlled by Mexican billionaire Carlos Slim, raised the number of clients it expects to add this year as expanding economies boost cell phone sales across Latin America. CEO Daniel Hajj said the company will sign up 22 million new subscribers in 2005, up from the company´s previous prediction of 17 million. Colombia and Brazil helped America Movil add a record 7.4 million clients in the second quarter, more than any other carrier in the Western Hemisphere.

Mexico’s central bank said the country’s economy will likely grow 3.75 percent this year, down from 4.0 percent predicted earlier this month. The lowered projection is due to slower economic growth in the US and lost market share of Mexican exports in the US, said Banco de Mexico´s chief economist Manuel Ramos Francia. The US buys 85 percent of Mexican exports. The bank repeated its forecast that the overall inflation rate will slow to less than 4 percent by year-end from 4.3 percent in June.

Telmex, controlled by Mexican billionaire Carlos Slim, reported a profit of $606 million in the second quarter as profit margins rose to 16.3 percent from 14.5 percent a year earlier. Total sales were up 27 percent to $3.65 billion. The company has been acquiring telecoms firms in Argentina, Brazil, Chile, Colombia and Peru and reported increased sales in all those countries.

Mexican industrial conglomerate Alfa posted a net profit $172 million in the second quarter, up 65 percent year-on-year. Revenue rose 22 percent to $1.6 billion. The company attributed the gains to increased sales of petrochemicals, refrigerated products, and aluminum auto components. The results include sales from steel unit Hylsamex, which Alfa has agreed to sell to Argentina´s Techint.

Televisa signed an agreement with Grupo Financiero Inbursa, controlled by Mexican tycoon Carlos Slim, to take a 25 percent stake in a new low-cost airline called Vuela Compania de Aviacion. Other partners in the venture include Discovery Americas and TACA airlines. Vuela plans to begin flights in the first half of 2006, joining three other low-cost airlines that plan to start flying in Mexico next year.

Mexican copper mining giant Grupo Mexico posted a net profit of $261 million in the second quarter, up from a $198 million a year earlier. Revenue came in at $1.3 billion. The company´s net profit was $490 million in the first half of the year, up 35 percent. Grupo Mexico owns controlling stakes in Southern Peru Copper, US-based Asarco and Mexican railway Ferromex.

Mexico’s central bank left the country´s benchmark interest rate at 9.75 percent Friday, its highest level in over two years. The bank said inflation has been slowing but remains above the target range of 2 to 4 percent. The annual inflation rate was 4.3 percent in June, down from last year´s 5.2 percent. The central bank has increased interest rates 12 times since February 2004.