Steel and mining companies continued to see strong declines in the 3Q14, though they were balanced out by gains in food and beverage companies.
Revenues at 25 of the largest multilatinas saw a slight decline when compared with a year earlier, with the average down -0.4%. However there were wide variations across the board: while mining and steel companies continued to see decline (perhaps evidence of the slowing the commodity boom, and less government infrastructure spending), food and beverage companies offset those losses with strong gains.
In percentage terms, Brazilian mining giant Vale saw a 26% decline in revenues. The company is among the most international in the ranking – with operations on almost all continents, and international operations contributing 81.1% of revenues. Brazilian steel giant CSN also saw large declines – 24.2%, with international operations accounting for just 21.3% of revenues. Brazilian steelmaker Gerdau was also down 7.1%. All of this points to declined demand for commodities, and less spending on manufacturing and infrastructure in Latin American countries.
Meanwhile, food and beverage companies by and large saw gains, offsetting the losses from mining and steel. Grupo JBS – the world’s largest producer of beef – saw revenues climb 15.7%. Mexican bottling giant FEMSA also grew 9.4%, while Mexican food giant Bimbo grew 8.2%. Colombia’s Grupo Nutresa also saw revenues up 4.2%, and Peru’s Alicorp by 3%. Food and beverage remains one of the …
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