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Grupo México profits up 14% in the third quarter

Grupo México profits up 14% in the third quarter

The positive results are mainly attributed to the 46% increase in copper prices in the third quarter. The mining division accounts for 81% of the group’s business, and within this division copper contributes 83% of sales.

This industrial metal was the backbone of the company’s results over the course of the year: In backlog sales, Ebitda and net profit rose 43%, 86% and 165%.

The demand for this metal increases as economies recover, as it is one of the main raw materials in sectors, such as construction. This increase in demand is accompanied by a decrease in stocks on the London Metal Exchange (LME), the most important for this type of raw material and which may indicate a real shortage of the metal, to its lowest level in decades, according to Reuters, and with expectations of higher inflation, as Investors tend to buy raw materials to hedge against higher prices, which has boosted copper by about 60% in the past 12 months.

Given this scenario and despite the 2.2% decline in copper production at Grupo México, the company managed an exceptional quarter.

In relation to its other divisions, Grupo México Transportes reported an increase in sales of 14%, 23% in Ebitda and 46% in net profit, due to a 14.3% increase in transport volumes and an increase in the number of vehicles transported. 9.3% “with greater activity in the agricultural sector and significant growth in the minerals, cement and industries”.

The infrastructure division was the worst performer, with first-quarter sales up 7%, while Ebitda fell 6% and posted a profit of $6.2 million compared to a loss of $1.2 million in the same period of 2020.

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