Mexico's ICA posts bigger loss on currency weakness

Mexican largest construction firm and infrastructure concessionaire ICA posted a bigger loss, a drop in Ebitda and lower sales in the third quarter due to a downturn in construction in response to the depreciation of the peso against the US dollar.

The company's net loss reached 2.26bn pesos (US$136mn) in the quarter compared with a net loss of 519mn pesos in the same period last year, according its ICA's latest earnings release.

Ebitda reached 1.32bn pesos, down 12% year-on-year, while revenues dropped 3% to 8.486bn pesos.

The company's debt increased 9% from end-2014 to 51.1bn pesos, mainly due to the weaker peso that pushed up costs, ICA said.

Revenue from construction fell 3% year-on-year to 6.0bn pesos.

FINANCIAL ADVISOR

After releasing the results, ICA announced that it has engaged Rothschild Mexico as part of its financial advisory team.

"They have been appointed to assist with an evaluation of the current operational situation of the company and to help with an assessment of various alternatives in order to improve the company's long-term performance and prospects," it said on Thursday.

"As part of this assessment, ICA is exploring with Rothschild various strategies to improve its liquidity and reduce its leverage. ICA does not have any plans to file for concurso mercantil [bankruptcy protection] or any other insolvency proceeding," the company added.