Latest news with #GrupoMexico
Yahoo
2 days ago
- Business
- Yahoo
Grupo Mexico evaluating US investments after scaled-back copper tariff
MEXICO CITY (Reuters) -Grupo Mexico, a major copper producer, is looking to decide on investments for projects in the United States within the next three to five years, an executive said on a call on Wednesday, as Washington prepares to levy tariffs on some copper products. U.S. copper prices plunged on Wednesday after an order signed by President Donald Trump fell short of the sweeping restrictions expected and left out copper input materials such as ores, concentrates and cathodes. Grupo Mexico had earlier said it saw the proposed tariffs as an opportunity to invest some $6 billion in expanding copper projects in Arizona run by its local subsidiary Asarco, including reopening a mothballed smelting operation. "Now with the recent developments, we're continuously evaluating if we should or we should not restart our Hayden operation," Leonardo Contreras, finance chief of Grupo Mexico's mining division told analysts in a conference call. "We will continue to monitor on how these global changes happen on a daily basis," Contreras added. The tariff was intended to promote domestic development but the United States depends on imports for nearly half of its refined copper needs, and homegrown projects often take years to get off the ground. Chile, Canada and Mexico are currently its main suppliers, though China buys the bulk of their exports. Grupo Mexico said that although the trade war between the U.S. and China could affect global economic growth and consequently demand for copper, it maintained a "very positive" outlook for long-term copper growth in Asia. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Business
- Reuters
Grupo Mexico evaluating US investments after scaled-back copper tariff
MEXICO CITY, July 30 (Reuters) - Grupo Mexico, a major copper producer, is looking to decide on investments for projects in the United States within the next three to five years, an executive said on a call on Wednesday, as Washington prepares to levy tariffs on some copper products. U.S. copper prices plunged on Wednesday after an order signed by President Donald Trump fell short of the sweeping restrictions expected and left out copper input materials such as ores, concentrates and cathodes. Grupo Mexico had earlier said it saw the proposed tariffs as an opportunity to invest some $6 billion in expanding copper projects in Arizona run by its local subsidiary Asarco, including reopening a mothballed smelting operation. "Now with the recent developments, we're continuously evaluating if we should or we should not restart our Hayden operation," Leonardo Contreras, finance chief of Grupo Mexico's mining division told analysts in a conference call. "We will continue to monitor on how these global changes happen on a daily basis," Contreras added. The tariff was intended to promote domestic development but the United States depends on imports for nearly half of its refined copper needs, and homegrown projects often take years to get off the ground. Chile, Canada and Mexico are currently its main suppliers, though China buys the bulk of their exports. Grupo Mexico said that although the trade war between the U.S. and China could affect global economic growth and consequently demand for copper, it maintained a "very positive" outlook for long-term copper growth in Asia.
Reuters
3 days ago
- Business
- Reuters
Mining giant Grupo Mexico reports profit bump as copper costs shrink
MEXICO CITY, July 29 (Reuters) - Mining and transportation conglomerate Grupo Mexico reported net profit rose 10% in the second quarter, helped by lower mining costs and a good performance from its copper byproducts business even as copper production edged down. Net profit for the group, a leading copper producer, came in at $1.23 billion from revenues that fell 4% to $4.24 billion, according to a filing dated late Monday, the latter above a $4.22 billion estimate of analysts polled by LSEG. Earnings before interest, taxes, depreciation, and amortization for the three months through end June rose 1.4% to $2.36 billion. Analysts polled by LSEG had expected EBITDA to land at $2.22 billion. Grupo Mexico, controlled by billionaire German Larrea, ranks among the world's largest copper producers by volume. At midday in Mexico City, its shares were trading up 1.3%. It maintained forecasts for an expected annual output of 1.08 million metric tons of copper, as output of the red metal over the quarter reached 267,325 tons, 1.3% less than the same period a year earlier, due to lower output at its Buenavista mine in Mexico's northern Sonora state. Although copper sales fell 2.9% from a year earlier, sales of molybdenum - a metal used to strengthen steel and speed petroleum refining - along with zinc and silver, rose. The mining division's cash cost for its primary metal, meanwhile, fell 10% from a year earlier, hitting $0.93 per pound of copper versus an average price of $4.55 per pound. Analysts at JPMorgan pointed to "a strategic decision to prioritize zinc and silver production at Buenavista Zinc, impacting copper production," and noted that Grupo Mexico had touted "the lowest cash costs in the copper industry, benefiting from higher byproduct credits." Byproduct credits refer to revenue generated from secondary metals extracted alongside a miner's main product. Santander analysts highlighted the lower metal extraction costs net of byproducts. "Grupo Mexico's balance sheet remains strong," they said. Earlier this month, U.S. President Donald Trump announced a 50% tariff on copper shipments starting August 1 in a bid to promote domestic development. The U.S., however, depends on imports for nearly half of its refined copper needs, and homegrown projects often take years to get off the ground. Chile, Canada and Mexico are currently its main suppliers. "There is an opportunity to invest up to $6.2 billion in the reopening and expansion of projects that align with the new mining and industrial policies of President Trump's administration," Grupo Mexico said in a report. It said it could expand production at its Ray and Silver Bell copper mines as well as reopen its Hayden smelter, all run by U.S. subsidiary Asarco, in Arizona. These proposals follow years of negotiations with local unionized workers. Construction of Grupo Mexico's Tia Maria project in southern Peru is progressing as planned, it added, and should launch in 2027. Sales at Grupo Mexico's transport division slid due largely to foreign exchange effects, the firm said, while its infrastructure arm was hit by the suspension of four platform projects on the part of state oil producer Pemex (
Bloomberg
13-06-2025
- Business
- Bloomberg
Grupo Mexico Will Sell Highway Business for $406 Million
Grupo Mexico, the copper mining conglomerate controlled by Mexican billionaire German Larrea, will sell its highway business for 7.7 billion pesos ($406 million) to local investment trusts FIBRAeMX and FEXI in the latest move to restructure the company. Proceeds from the sale of around 80% of Concesionaria de Infraestructura del Bajío, known as CIBSA, and some 99% of shares of Operadora de Infraestructura del Bajío, or OIBSA, will go toward investment projects in Mexico and be spread across the company's other businesses, Grupo Mexico announced in a statement on Friday.
Yahoo
06-05-2025
- Business
- Yahoo
FreightCar America Q1 net better than half of revenue
FreightCar America said net income totaled $50.4 million in the first quarter while revenue of $96.3 million fell 40.2% from the year-ago period. The Chicago-based railcar builder (NASDAQ: RAIL) delivered 710 units in the quarter ended March 31, down from 1,223 units in the previous-year quarter. Adjusted net income was $1.6 million, or 5 cents per share, primarily reflecting a $52.9 million noncash adjustment due to a change in warrant liability. Adjusted earnings before interest, taxes, depreciation and amortization was $7.3 million, from $6.1 million in the first quarter of 2024. Gross margin was 14.9% with gross profit of $14.4 million, compared to gross margin of 7.1% with gross profit of $11.4 million. The company said it ended the quarter with a backlog of 3,337 units valued at $318 million. 'In line with our expectations for the first quarter, we achieved robust margins, once again outperforming our industry peers, reflecting our commitment to differentiated product offerings and exceptional commercial discipline,' said Nick Randall, president and chief executive of FreightCar America, in a release. 'Order activity remained strong, with 1,250 railcars ordered during the quarter valued at approximately $141 million, underscoring our ongoing momentum and expanding market share.' While noting that the industry has experienced delays in freight car orders, Randall said 'our healthy backlog and growing inquiry pipeline position us for a meaningful ramp up in deliveries for the remainder of the year.' The company reaffirmed its full-year guidance of delivery of 4,500-4,900 railcars, up 7.7%, revenue of $530 million-$595 million, up 0.6%, and adjusted EBITDA of $43 million-$49 million, an increase of 7%. Subscribe to FreightWaves' Rail e-newsletter and get the latest insights on rail freight right in your inbox. Find more articles by Stuart Chirls here. Related coverage: Grupo Mexico rail operations earnings plunge as volume drops BNSF profits rise as volume and rates increase Class I railroads keep optimistic outlooks despite trade uncertainty CN's first-quarter earnings grow despite impact of severe weather The post FreightCar America Q1 net better than half of revenue appeared first on FreightWaves.
