Mexichem SA, Latin America’s biggest plastic-pipe maker, plunged the most in sixteen months after the company reported preliminary sales for 2012 that fell short of analysts’ estimates.
The stock sank 5.9 percent to 65.91 pesos at the close of Mexico City trading, the steepest drop since September 2011. The shares had tumbled 2.8 percent yesterday, in a decline that came mostly in the last hour of trading after the preliminary fourth-quarter earnings report was posted on the Mexican stock exchange’s website.
Mexichem, based in Tlalnepantla, had 2012 sales of 63.4 billion pesos ($5 billion), the company said in a statement. That compared with the average estimate of 67.7 billion pesos in a Bloomberg survey of nine analysts. Earnings before interest, taxes depreciation and amortization totaled 13.3 billion pesos, the company said, compared with the average analyst estimate of 14.4 billion pesos.
The results should be “negative for the shares,” Credit Suisse Group AG analysts led by Vanessa Quiroga wrote in an e-mail today to clients. The company’s report gave few details on one-time costs in the quarter, the analysts wrote.