César Alierta, CEO of Telefónica, the largest Foreign Company in Latin America.
The Top 40 Foreign Companies kept the same general direction of their local counterparts, but did better.
By Santiago Gutierrez
Multinaltionals operating in Latin America fared way better than their local counterparts. While the Latin 500 – which comprises local and foreign companies, decreased their revenues by 4.5% in 2013, multinationals managed to increase them by 1.9% in the same period.
It’s a major achievement considering the rough prevailing economic environment in the region. Like the Latin 500, one-half of the companies on the list of the Top 40 Foreign Companies posted decreases in revenues during the year.
Some industries were hard hit by the new global conditions. Large foreign mining and energy firms had major setbacks, due to the significant reduction in international commodity prices. The IMF’s commodity price index for metals fell 4.2% and the index for energy 1.8% in 2013. In the same direction, sectorial revenues of the Top 40 Foreign Companiesfell 7.5% in mining and 3.3% in energy.
On the other hand, retail sales grew by an outstanding 19.7%. Domestic demand, which was the driver of sales in the region in 2013, was part of the reason for this performance. However, behind the leap in revenues, stands the effective takeover of management control of Brazilian retailer Pão de Açúcar in July 2012. The moveincreased Casino’s South American figures, and also boosted the importance of the international arm of French Groupe Casino, which now accounts for …
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