Companies in the industrial sector were the top performers in Latin Trade's most recent Multilatina Index
By David Ramirez
Albeit the positive performance of the industrial sector, Latin Trade’s Multilatina Index–a ranking of the 25 largest multilatinas by US dollar revenue–fell 4.9 percent in 2014 on the back of falling revenue in oil, food and beverages, retail, airlines, telecom and mining.
The Index’s behavior partly reflects a strong 6.1 percent contraction in the last quarter alone, compared with the same period in 2013.
Low iron ore prices hit Brazilian steel mills harder.
The mining sector Index fell 12 percent in 2014 as a whole– the worst performance in the ranking– chiefly owing to lower revenue for Vale, CSN and Gerdau, by 20, 18 and 6 percent, respectively.
The telecoms sector Index, yet another top underperformer, declined 8 percent each in the last quarter and in January-December on the back of America Movil’s falling revenue. Last year, the Mexico-based telecoms provider registered sluggish organic growth and was affected by exchange rate depreciation.
Airlines also were amongst the Index’s worst performers basically reflecting falling revenues of the Chile-based LATAM Airlines Group. The company was largely hit by a decline in passenger revenue throughout the year (it fell 11 percent only in October-December) in key domestic markets, such as Brazil and Chile.
Falling revenues of Chilean retailers Cencosud and Falabella drove the retail Index to retract 6 percent in the year and 5 percent in the last quarter, …
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