Bloomberg News

Mexico Stocks: Asur, Geo, Urbi Shares Decline; Cemex Advances

October 26, 2011

Oct. 26 (Bloomberg) -- The following companies had unusual price changes in Mexico trading. Stock symbols are in parentheses and prices are as of the close in Mexico City.

The IPC index rose 1.5 percent to 35,818.58.

Urbi Desarrollos Urbanos SAB led declines among Mexican homebuilders. The Habita index of six builders tumbled 3.6 percent, extending its two-day loss to 8.8 percent.

Urbi’s updated 2011 forecast for free cash flow to equity, or profit available for shareholders after expenses, was a “big disappointment” after a year of investments, Banco Santander SA analyst Rogelio Urrutia wrote in a report dated today. The company cut its prediction for the measure, known as FCFE, to negative 800 million pesos ($60 million), from an expected range of positive 500-800 million pesos a quarter earlier, according to a transcript of the Oct. 25 conference call with investors.

Urbi (URBI* MM) shares tumbled 6.5 percent to 18.15 pesos. Desarrolladora Homex SAB (HOMEX* MM), Mexico’s largest homebuilder, slipped 0.7 percent to 31.33 pesos. Corp. Geo SAB (GEOB MM), Mexico’s second-largest homebuilder, dropped 4.1 percent to 18.33 pesos.

Cemex SAB (CEMEXCPO MM), the largest cement maker in the Americas, rose 2.7 percent to 5.03 pesos. The company posted a gain in quarterly cash profit today, surprising analysts who had projected a decline. Earnings before interest, taxes, depreciation and amortization, a measure of cash flow known as Ebitda, rose 1.4 percent to $658 million from a year ago. Ebitda was forecast at $619 million, according to the estimates of 5 analysts.

Grupo Aeroportuario del Sureste SAB (ASURB MM), the operator of airports in southern Mexico, fell 2.4 percent to 74.53 pesos. Hurricane Rina headed toward Mexico’s Yucatan Peninsula, including the resorts of Cancun and Cozumel, as it weakened to a Category 1 storm, according to the U.S. National Hurricane Center.

--Editors: Glenn J. Kalinoski, Marie-France Han

To contact the reporter on this story: Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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