MOSCOW (MRC) -- Mexichem's (Tlalnepantla, Mexico) first-quarter net income amounted to USD50.6 million, a big jump from USD18.9 million the same time last year, said Chemweek.
The company’s Ebitda increased 1% year-on-year (YOY), to USD200 million, despite a 12% decline in revenue, to USD1.26 billion. Lower raw material costs for compounds, lower vinyl chloride monomer (VCM) prices for the production of polyvinyl chloride (PVC), and a positive performance at the Vestolit subsidiary contributed to the improved profit. Operating income for the first quarter grew 21% YOY, to USD109.3 million
In the fourth quarter of 2015 the Company completed a restructuring process in the Fluor Business Group. The restructuring process was prompted by two factors: i) a structural adjustment to adapt the business to current market conditions, and ii) a decision to no longer operate in certain markets where conditions are not suitable to sustain profitability.
On April 20, 2016, Mexichem announced that a major explosion had taken place that afternoon at its joint venture PMV on the VCM plant in the Clorados III area, inside the Petrochemical Pajaritos Complex, resulting in 32 fatalities. In the following days, the Company had reached out to provide support and assistance to all those affected, stabilized the facility, and expressed its full commitment to determine the cause of this accident.
Mexichem, of Tlalnepantla, an industrial municipality close to Mexico City, is Latin AmericaпїЅs largest manufacturer of PVC pipe, vinyl resins and compounds. The company has annual revenues of more than USD5 billion and has been listed on the Mexican Stock Exchange for more than 30 years.
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