UPDATE 1-Grupo Mexico's quarterly profit tumbles as revenue slumps

miércoles 10 de febrero de 2016 20:18 GYT
 

(Adds reason for profits falling, share price)

MEXICO CITY Feb 10 (Reuters) - Mexican mining, rail and infrastructure company Grupo Mexico said on Wednesday its fourth-quarter net profit fell 55 percent, compared to the year-earlier period, hit by a drop in sales and a higher tax bill.

Grupo Mexico posted a profit of $160.8 million for the three-month period, down from $357.5 million in the same quarter a year earlier.

However, revenue for the quarter was down 14.5 percent at $1.99 billion. The company's tax bill also rose from $174 million in the fourth-quarter of 2014 to $236 million in the final quarter of 2015.

The tailing off of the Chinese-led commodity boom has driven metals prices down in recent years and the company has come to rely more on its rail division. Grupo Mexico chose last year to postpone an initial public offering of its rail unit ITM, and it is unclear when, or if, it will now take place.

Shares in the company were down 1.35 percent at 33.70 pesos ($1.78) per share at market close, before the results were announced.

($1 = 18.9111 pesos) (Reporting by Gabriel Stargardter; editing by Diane Craft)