Grupo Mexico reported a 6.5% drop in fourth-quarter net profit to $686.5 million, missing analyst expectations, while revenues increased by 13% to $3.85 billion. Challenges stemmed from losses in its infrastructure division and a decline in transport profits. Despite this, the mining division showed strong sales growth and a production forecast aligned with prior expectations.
Grupo Mexico (GMEXICOB.MX) disclosed a 6.5% decline in net profit for the fourth quarter, totaling $686.5 million, falling short of analysts’ expectations. Revenue increased by 13%, reaching $3.85 billion, but this was less than the projected $4.04 billion. The company’s disappointing results were primarily attributed to its infrastructure division’s losses and reduced profits in its transport sector.
Despite challenges in certain divisions, Grupo Mexico’s mining operations saw a 17.4% increase in sales during the quarter, buoyed by a minor 0.8% increase in copper output and a substantial rise in zinc production. The company’s annual copper production totaled 1.086 million metric tons, aligning with its forecast. For 2025, the producer expects a slight reduction in copper output to 1.083 million metric tons.
The transport unit of Grupo Mexico experienced a 3.5% decline in sales compared to the same period last year, resulting in a minor profit downturn of 0.1%. Meanwhile, the infrastructure segment showed some improvement by lessening its losses from the previous year. The complex operates with a broad footprint in copper mining across several countries, including Peru, the U.S., Spain, and Mexico, where it also provides significant freight service.
Grupo Mexico’s fourth quarter results highlight a mixed performance, with notable strengths in mining operations balanced against struggles in transport and infrastructure. Despite missing profit expectations, the conglomerate maintains a solid output forecast for copper production. Overall, its diverse operations demonstrate resilience, yet the company faces ongoing challenges in certain segments.
Original Source: www.kitco.com
