Increased sales help Juan Minetti turn a profit

Juan Minetti, Argentina's second-largest cement producer, posted a 65.1mn (US$22.3mn) net profit in the first quarter, compared to a 335mn net loss in 1Q02, the company said in a statement to the country's securities regulator, the CNV. Sales revenue jumped 46.5% to 82.1mn pesos, which helped operating profit close at 26.5mn pesos versus a 29.2mn peso loss in 1Q02. Earlier this year, credit rating agency Fitch maintained its Category 4 rating on shares of Minetti. Category 4 is for low quality, medium liquidity shares with a low capacity to generate funds. According to Fitch, the rating reflects the company's weak fund generation denominated in pesos compared to the company's high (over 90%) dollar-denominated debt, coupled with the effect of the peso's devaluation (73%) on Minetti's dollar-denominated costs. Swiss cement giant Holcim controls Minetti, which has a 34% market share behind Loma Negra with 48%.