ICA’s Quarterly Profit Rises 34% on Industrial Construction
Empresas ICA SAB, Mexico’s largest construction company, said first-quarter net income rose 34 percent on higher sales from industrial construction.
Profit increased to 293 million pesos ($25.5 million) from 218 million pesos a year earlier, Mexico City-based ICA said today in an e-mailed statement. Revenue rose 21 percent to 8.54 billion pesos.
A Mexican government push to build roads, bridges, hospitals and other infrastructure projects has spurred ICA’s sales. During the quarter, ICA won a 5.4 billion-peso contract to build a second-level on a Mexico City highway and work continued on clean-fuels projects at four government-owned oil refineries.
Net income was higher than the 237 million pesos estimated by Francisco Chavez, an analyst with the Mexican unit of Spain’s Banco Bilbao Vizcaya Argentaria SA, in an April 27 report. Chavez forecast sales at 8.19 billion pesos.
Sales at ICA’s civil construction unit rose 19 percent to 5.62 billion pesos and industrial construction sales jumped 42 percent to 1.05 billion, the company said. ICA’s backlog of projects was 44.7 billion pesos at the end of March, up from 38.2 billion pesos a year earlier.
ICA rose 30 centavos, or 1.1 percent, to 28.72 pesos in Mexico City trading at 4:10 p.m. New York time. The shares have dropped 9.2 percent this year.
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