Mexico's Vitro Q3 earnings seen weak on economy

Glassmaker Grupo Vitro is seen reporting weak third quarter earnings compared with the same quarter last year, due to weak economies in Mexico and the U.

S. and because the company sold off its pharmaceutical and appliance divisions in the past year.The average forecast in a Reuters survey of four analysts who cover Vitro was for a 6.2 percent fall in earnings before interest, taxes, depreciation and amortization (EBITDA) in the July-September period, compared with the same quarter last year.The poll also forecast a 20 percent drop in sales and a 7.7 percent fall in operating profit for a Monterrey, Mexico-based firm which makes flat glass for the automotive and construction industries, as well as glassware.Both Mexico and the United States are slowly recovering from economic recessions last year, and the weak economies have depressed demand for Vitro's products, analysts said.However, analysts said they saw Vitro's sales falling only 3.08 percent when comparing the third quarter with the second quarter, which they said made more sense given that the company has shed some units over the past year.The poll did not yield a consensus forecast for net income because analysts said it was tough to gauge whether the 2.44 percent depreciation of the Mexican peso versus the U.S. dollar during the quarter would have a positive or negative effect on the company.Some 48 percent of Vitro's sales are in dollars.Vitro plans to report third quarter results on Oct. 24.The following table compares the average forecast with inflation-adjusted results from the third quarter of 2001. All numbers in pesos except for earnings per American Depositary Receipt (ADR), which are in dollars.

600450 Mexico's Vitro Q3 earnings seen weak on economy glassonweb.com

See more news about:

Others also read

Current president Richard Beuke set to retire on March 31, 2019.
Today, WDMA released the following statement regarding the signing of the U.S.-Mexico-Canada Agreement (USMCA).
Vitro announces that after a distinguished career in the industry, Richard Beuke has taken the decision to retire effective March 31st , 2019.
Vitro Glass-commissioned survey first to gauge general contractors’ demands, expectations of glazing contractors, glass fabricators and glass manufacturers.
Glass with bird-friendly pattern, solar control capabilities help land top building award.
Low-e glass helps maximize performance of unitized curtain wall system.

From industry

NEWS RELATED PRODUCTS

Vitro Architectural Glass (Formerly PPG Glass)
Vitro Architectural Glass (Formerly PPG Glass)

Add new comment