French carmaker PSA Peugeot Citroën plans to invest $125 million in its plants in Argentina to boost output in the country by 110% this year. PSA also plans to start exporting from Argentina to markets beyond Latin America, including South Africa.
Category: Daily Brief
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Latin America Drives InBev Sales
Sales of Belgian brewer InBev in Latin America rose 12% to 18.2 million hectoliters in the first quarter thanks to the company’s 2004 acquisition of Brazil’s AmBev. Strong sales in the region, helped push group sales up by 4.1% to 47.3 million hectoliters in the same period. Sales of AmBev’s flagship brand Brahma outpaced Stella Artois and Beck’s with an increase of more than 17% driven by rising sales in Brazil. InBev is launching Brahma around the world this year.
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Mexico: Trade Deficit Shrinks
Mexico posted a $181 million trade deficit for March, its lowest in 11 months. The country had exports worth $17.33 billion, up 4.4% year-on-year. Imports were $17.52 billion, up 4.5%. Exports of oil and oil-related products jumped 41% to $2.5 billion, while manufactured goods were worth $14.6 billion. Mexico’s total trade deficit in the first three months of 2005 came to $1.8 billion.
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PDVSA to Build Refineries
Venezuelan state-run oil giant PDVSA plans to construct three new crude oil refineries in Venezuela by 2010, including one in the northern state of Anzoategui with 400,000 barrels per day capacity. The company also plans to improve and update the rest of its refining facilities to increase output. The decision coincides with growing restrictions on foreign investment in Venezuela’s oil industry.
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Telefónica CTC Chile Profit Up
Telefónica CTC Chile, the Chilean unit of Spanish telecom giant Telefónica, posted net profit of $14 million for the first quarter, up 127% year-on-year. The company says its stronger performance was due to its success in the broadband market and ability to retain customers, which had previously been a problem for the company.
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Brazil: Higher Inflation Expected
Brazilian economists increased their 2005 inflation forecast for an eighth straight week on concern rising international oil prices will force the government to raise domestic fuel prices, a Central Bank survey showed. The median expected inflation rate rose to 6.15% from 6.1% a week earlier and from 5.68% at the end of February. The estimate is the highest since the Central Bank started polling the market’s inflation forecasts four years ago.
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Embraer Wins Order
Brazil’s Embraer, the world’s fourth-biggest aircraft maker, won a $400 million order for 15 aircraft from Saudi Arabian Airlines, the first Middle-Eastern carrier to buy the company’s new, bigger jets. The state-run airline ordered 15 Embraer 170 aircraft with delivery due to begin in December. Embraer is trying to secure orders from Europe and other parts of the world to offset the growing risk that some of the company’s cash-strapped US customers may continue to cancel orders.
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Gutiérrez Arrives in Brasilia
Deposed Ecuadorian President Lucio Gutiérrez has arrived in Brasília, where he is expected to petition Brazil’s Justice Ministry for political asylum. Ecuador’s new government — led by former Vice-President Alfredo Palacio — originally issued an arrest warrant for the ex-president following widespread protests. The opposition denounced him as corrupt and for firing Ecuador’s Supreme Court justices.
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Cemex Reports Strong Results
Cemex, the world’s third-largest cement maker, said first-quarter profit surged 43 percent after the Mexican company bought U.K.-based RMC Group for $5.8 billion and an expanding U.S. economy boosted demand. Net income rose to $444 million from $311 million a year earlier. Sales, including one month of RMC operations, also grew 43 percent, to $2.6 billion.
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Globo Completes Restructuring
Globo Comunicacoes e Participacoes, the unit of Brazilian conglomerate Globo that owns the group’s film and TV studios and its investments in cable television, has persuaded owners of 81 percent of $980 million of bonds to accept new bonds and cash for defaulted debt. Investors holding the remaining debt agreed to a similar swap in March. The accord, under negotiation since 2002, lets Globo avoid selling television stations put up as collateral.