Empresas ICA SAB, Mexico’s biggest builder, plunged the most in four years as construction revenue declined, leaving the company with a loss and disappointing investors who were betting on more government spending.
Shares fell 8.6 percent to 10.11 pesos at 11:47 a.m. in Mexico City, the worst performance since August 2011 on a closing basis. ICA was the biggest loser on the benchmark IPC index, which rose 0.8 percent. The stock earlier fell to 9.77 pesos, its lowest intraday level since 2003.
The second-quarter loss of 567 million pesos ($34.9 million) was ICA’s fifth straight, exceeding the 498.5 million peso loss forecast by analysts in a Bloomberg survey. And in an indication of what’s to come, ICA’s backlog of construction contracts fell to 33.8 billion pesos in the second quarter, down 6.5 percent from the previous period.
“We consider the report weak, with a negative surprise in construction,” Gerardo Cevallos, an analyst at Vector Casa de Bolsa wrote in an e-mailed note to clients.
In a statement Tuesday, Mexico City-based ICA said it was expecting a recovery in construction during the second half of 2015 and into 2016.
Total sales in the quarter slid 8 percent from a year earlier. Construction revenue fell 12 percent.