Bloomberg News

Salfacorp Leads Ipsa Retreat After Lower Profits: Santiago Mover

March 12, 2012

Salfacorp SA (SALFACOR), Chile’s largest engineering and construction company, led losses among members of the benchmark Ipsa index after reporting a 28 percent decline in annual profit.

Salfacorp fell 2.5 percent to 1,364.9 pesos at 1:37 p.m. in Santiago. It earlier retreated 3.2 percent, the most on an intraday basis in 13 weeks. The Ipsa was little changed.

Salfacorp SA reported that 2011 annual net income dropped to 15.9 billion pesos ($33 million), from 22.1 billion pesos in 2010, according to a statement posted March 10 on the website of Chile’s securities regulator.

“Salfacorp is falling after posting weak results,” Santiago-based brokerage FIT Research wrote in a note to clients today.

On a quarterly basis, profit fell 56 percent to 5.31 billion pesos from 12 billion pesos a year earlier.

“Market conditions in the last quarter affected the company’s margins, despite a considerable expansion in revenue,” Euroamerica Corredores de Bolsa SA wrote in a note to clients. “In the mid-term we expect conditions to improve.”

Salfacorp’s 2011 revenue rose 27 percent to 901 billion pesos. Euroamerica attributed the gain to the consolidation of recent acquisitions, such as Chilean builder Empresas Tecsa SA, engineering services company ICEM SA and Panamanian builder Intercoastal Marine Inc.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

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


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