MOSCOW (MRC) -- Mexican chemical and petrochemical company Mexichem reported net income of USD52.8mn in the third quarter, compared to a net loss of USD62.8mn in the year-ago period, said Bnamericas.
"This increase was primarily due to the impact of discontinued operations in the fluor chain on 3Q13 results," according to a company statement.
Net sales were up 8% year-on-year to USD1.429bn, boosted by the performance of resins, compounds and derivatives and integral solutions.
In January-September, net income jumped 80% year-on-year to USD152mn from USD84mn. Sales rose 8% to USD4.212bn. South America accounted for 30% of the company's total sales in the third quarter.
As MRC wrote before, Mexichem announced that it has reached an agreement to acquire Dura-Line Corp. from CHS Capital for a total of USD630 million in cash and assumed liabilities, advancing Mexichem’s strategy of global growth in high-end specialty products. Based in Knoxville, Tennessee, Dura-Line is a global leader in high-density polyethylene (HDPE) conduit, duct and pressure-pipe solutions for telecom and data communications, energy and infrastructure industries. Dura-Line has manufacturing facilities in North America, India, Oman, Europe, and South Africa.
Mexichem, of Tlalnepantla, an industrial municipality close to Mexico City, is Latin America’s largest manufacturer of PVC pipe, vinyl resins and compounds. Neither it nor SVP mentioned when they expected the deal to be completed.
New York investment banking firm Jefferies LLC advised SVP. JP Morgan Chase & Co was Mexichem’s adviser.
MRC