Grupo Mexico Cuts Metal Prices, Southern Copper, ITM To Boost Earnings in Q2

For Grupo México, SAB de CV (GMEXICOB:MM), we have revised our model following the changes made to our metals price deck and FX estimates. We include our second quarter of 2015 results preview.  Grupo Aeromexico S.A.B. de C.V. (“Aeromexico”) (BMV: AEROMEX), today reported its unaudited consolidated results for the second quarter 2015.


  • Grupo Aeromexico’s second quarter 2015 revenues reached $11.28 billion pesos; an 8.9% year-on-year increase.
  • Grupo Aeromexico reported operating profit of $401 million pesos for the second quarter 2015; a 76.9% year-on-year increase, which also represents 21 consecutive quarters of positive EBIT results. Operating margin reached 3.6%; a 1.4 percentage point improvement compared to the same period of 2014.
    Second quarter EBITDAR reached $2.39 billion pesos; a 37.1% increase compared to the prior year. EBITDAR margin amounted to 21.2%, a 4.4 percentage point increase as compared to 2Q of 2014.
  • This quarter´s financial results reflect the positive impact of reduced fuel prices and the negative impact of Mexican peso depreciation against the US dollar. CASK in pesos decreased 5.9% while CASK in dollars decreased 20.2%, highlighting Grupo Aeromexico´s ongoing focus on optimizing unit costs.
  • Second quarter net income reached $101 million pesos with a 0.9% margin, which compares favorably with the net loss of $89 million pesos and the 0.9% negative net margin registered during the second quarter 2014.
  • During the first six months of 2015, Grupo Aeromexico’s revenues reached $21.96 billion pesos, a 9.1% increase compared to the same period of 2014. EBITDAR reached $4.81 billion pesos, a 50.6% increase year-on-year.
  • During the first semester of 2015, Grupo Aeromexico reported operating profit of $927 million pesos, three times higher compared to the first semester of 2014. Operating margin reached 4.2%, 2.6 percentage points higher than the first half of 2014.
  • During the second quarter of 2015, the Company initiated the following international routes: Mexico City-Panama City; Mexico City-Boston and Mexico City-Toronto as well as increasing scheduled service from Mexico City to London Heathrow from three to five services per week by the end of the second quarter of 2015.

Grupo Aeromexico retired five aircraft under operating lease agreements from its fleet during the second quarter of 2015: one B767, one B737-700 and three E-145. The Company added four aircraft to its fleet under operating lease agreements: three B737-800 and one E-170/175. Grupo Aeromexico’s operating fleet therefore consisted of 125 aircraft, a decrease of one aircraft compared to the first quarter of 2015.


Roger Gillespie, MBA, is research analyst and focuses Services, Technology and Energy & Utilities sectors. Prior joining Equities Mogul, Roger Gillespie worked with Telsey Research. If you have a great story idea for Roger Gillespie, you can write at [ ].


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