Lower Metal Prices causes Grupo Mexico to post loss

Despite an aggressive cost-cutting campaign, Grupo Mexico registered a loss of US$48.8 million on revenue of US$773.2 million in the three months ended March 31.

Lower metal prices and higher energy costs hit the base metal producer, which had posted a US$39-million loss on revenue of US$824.4 million in the first quarter of 2000. Lower sales volumes for copper and the shutdown of the company’s lead smelter in East Helena, Mont., contributed to loss. Total energy costs were US$11 million higher than they had been a year before, more than accounting for the difference in earnings between the comparable quarters of 2000 and 2001.

Grupo Mexico’s Asarco subsidiary posted an operating loss of US$30.2 million on revenue of US$265.7 million for the quarter, against a loss of US$26.2 million on revenue of US$312.7 million in the first quarter of 2000.

Southern Peru Copper (pcu-n), in which Grupo Mexico owns a 54% interest, made an operating profit in the quarter, booking earnings of US$28.5 million and revenue of US$162.4 million.