Mexico's ICA doubles loss in Q3

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Monday, November 28, 2016

Embattled Mexican construction and engineering company Empresas ICA reported that its losses in 3Q16 doubled, while Ebitda and revenues also fell as a result of the company's decision to exit its international business, ICA said in its latest earnings release.

The company posted a 4.53bn peso (US$220mn) consolidated net loss for the quarter, which was 101% more than that posted in the same period of 2015.

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The company's construction revenues plunged 71% compared to 3Q15, which the company said was mainly due to factors such as the deconsolidation of Maryland-based company Facchina Construction group, which ICA acquired in 2014, as well as the completion of different construction projects in Mexico.

Ebitda reached 1.22bn pesos, down 29% from the 1.71bn pesos reported in the same three months of last year.

The company's operating income also dipped 25% in comparison to 881mn pesos in 3Q15, although the operating margins was up to 17.4% from 15.2% last year.

Debt was down 4% at the end of September of this year at 67.6bn pesos compared to the end of 2015.

Despite the other results, the company's airports and concession segments did see 29% and 2% growth, respectively, during the quarter.

ICA'S RESTRUCTURING PROCESS

Since last year, the company has engaged in a restructuring process in order to avoid bankruptcy and ensure the long-term continuity of its business. The company announced that it would wind down its international and real estate divisions and limit its construction business to Mexican operations. A new CEO for the company was named earlier this month.

In October, ICA secured its first contract for the future Mexico City international airport and also announced its decision to dissolve its partnership with ADP in SETA, airport group OMA's strategic partner.