UPDATE 4-Grupo Mexico profit falls, shares up on rail offer hopes

miércoles 4 de febrero de 2015 16:01 GYT

(Adds Mexico bourse statement of request by Grupo Mexico to list rail unit)

MEXICO CITY Feb 4 (Reuters) - Grupo Mexico's quarterly profit fell 24 percent on exchange rate and financing costs, the mining and transportation conglomerate said on Wednesday, but its share price surged 6 percent as investors cheered a possible rail unit offering.

Grupo Mexico said fourth-quarter profit fell to $380 million from $500.67 million in the year-earlier period.

The company said revenue for the October-December period was $2.32 billion, down 0.6 percent from the same quarter last year. Grupo Mexico said it planned $3.4 billion in capital expenditures in 2015. The company was expected to invest that amount last year, but ended up spending $2.44 billion due to delays at two key mines.

Still, Grupo Mexico shares jumped after the company said on Tuesday it was mulling listing part of its rail business. The company gave no further details on the possible offering in its results, but Mexico's bourse later said it had received a request from ITM, Grupo Mexico's rail unit, for a mixed share offering on the exchange.

By offering 15 percent of its transport unit, Grupo Mexico could expect to make $660 million, Banamex said in a note.

Grupo Mexico shares were up 5.9 percent in early afternoon trading at 43.43 pesos ($3) per share.

The offering has been on the cards for years, but Grupo Mexico's rail business in recent years has benefited increasingly from Mexico's booming auto sector.

The company said 2014 was a record year for its transport division, which notched sales of $1.995 billion thanks to growth in the automotive, energy and industrial sectors.   Continuación...