Mining giant Grupo Mexico reported a decrease in its net profit for the fourth quarter, falling short of analysts' expectations. The decline was attributed to losses in its infrastructure division and a reduced profit in its transport unit.
The net profit dropped by 6.5% to $686.5 million, although revenues increased by 13% to $3.85 billion. Analysts had predicted a net profit of $945 million from revenues of $4.04 billion.
Grupo Mexico, controlled by billionaire German Larrea, is a major copper producer with operations in Peru, the United States, Spain, and Mexico, where it also runs significant freight railroads.
Sales in the mining division surged by 17.4% in the quarter, driven by a 0.8% increase in copper output and a more than doubling of zinc production.
For the full year, Grupo Mexico's copper production reached 1.086 million metric tons, aligning with its projections. The company anticipates a slightly lower production of 1.083 million tons for 2025.
The transport unit experienced a 3.5% drop in sales compared to the previous year, leading to a slight decrease of 0.1% in net profit, while the infrastructure division reduced its losses from the prior year.