October 28, 2016 / 7:02 PM / 2 years ago

UPDATE 1-Grupo Mexico says profit fell, no rail IPO for now

(Adds possible IPO timing from conference call, share price)

MEXICO CITY, Oct 28 (Reuters) - Mexican mining, rail, and infrastructure company Grupo Mexico reported a 25.6 percent drop in quarterly net profit that it blamed on an “other income” loss, despite rising revenue from copper production.

Grupo Mexico in a filing dated Oct. 27 reported a third-quarter net profit of $220.6 million, compared with $296.5 million a year earlier.

The company’s revenue rose 9.9 percent to $2.1 billion, boosted by an increase in low-cost copper production resulting from expanded operations at its Buenavista mine in northern Mexico.

The company said, however, it had an “other income” loss of $81.8 million, compared with a gain of $150.5 million in the same period in 2015.

On a later conference call with analysts, executives said the long-delayed initial public offering of the company’s rail unit was not viable right now but that Grupo Mexico would revisit the situation again in the first quarter of 2017.

Shares in the company were down 3.2 percent in late afternoon trading, at 46.44 pesos ($2.45) per share.

$1 = 18.9742 pesos Reporting by Joanna Zuckerman Bernstein and Christine Murray; Editing by Meredith Mazzilli and Steve Orlofsky

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