Mexico's Alfa flags 21% cut to CAPEX spend this year to reach $450 mln (updated)

Alfa Laval AB

21/02/2024 14:28

(Adds details on revenue, core earnings and Alpek plans)
       MEXICO CITY, Feb 21 (Reuters) - Mexican conglomerate
Alfa plans to deploy $450 million in CAPEX this year, down 21%
compared to capital spending last year, according to a company
statement released on Wednesday.
    The statement added that company revenue will likely tick up
1% while core earnings are expected to rise 9% this year. 
    Alfa posted a wider fourth-quarter net loss of $652 million
on Tuesday, largely attributed to the weak performance at its
petrochemical subsidiary Alpek.
    The petrochemical unit's spending plan will be cut by 28%
this year from the previous year to total $200 million,
according to the Alfa statement.
        The conglomerate expects Alpek to endure what a company
executive described on Tuesday as a "slow recovery," while a
stable outlook is seen for food subsidiary Sigma.
  

 (Reporting by Valentine Hilaire and Aida Pelaez Fernandez;
Editing by David Alire Garcia)
 ((Valentine.Hilaire@thomsonreuters.com;))