Mining sector revenues plunged 26 percent
The index’s 25 firms grossed $98.7 billion in the first quarter
by David Ramirez
Latin Trade’s Multilatina Index –a ranking of the top 25 multilatinas by US dollar revenue– plummeted 21 percent year on year in the first quarter of 2015, partly owing to weaker operating conditions, as well as the effect of a stronger greenback on local-currency revenues.
The index’s 25 firms grossed $98.7 billion in the quarter on the back of sharp revenue contractions in food & beverage, oil, mining and telecoms, which account for 80 percent of the total.
The food & beverages sector posted $24.3 billion revenue, 14 percent down from the first quarter of 2014, in response to double-digit contractions in the larger firms, such as Brasil Foods (-26 percent), Femsa (-12 percent) and JBS (-10 percent).
JBS, which remained the third biggest multilatina, exemplifies the brunt of the dollar’s strength, considering that its local-currency revenue soared 28 percent in the period.
Also in the food & beverages sector, Arcor and Grupo Bimbo, registered positive index growth, of 4 and 3.5 percent respectively, thus becoming the second and third best index performers.
The oil & gas index shrank 35 percent, reflecting an equivalent behavior in the revenues of Petrobras, which reached $23.2 billion. The Brazilian giant, however, maintained its place as the largest multilatina.
Mining revenues dived 26 percent, to $16.4 billion, in line with …
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