:. Food Industry News

Categories: Corporate Results

Mexico's Comerci Posts Quarterly Loss

Source: Reuters
29/10/2008

Mexico City, Oct. 28 - Mexican retailer Comercial Mexicana posted a 3.79 billion peso ($346 million) net loss for the third quarter Tuesday, slammed by losses in its currency derivatives positions, the company said.

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Comercial Mexicana, known as Comerci, had earned 616 million pesos in the July to September period last year.

The company said sales during the quarter rose 4.6 percent to 13.9 billion pesos ($1.3 billion) from 13.3 billion in the same quarter last year, according to a filing with the Mexican stock exchange.

The company said that the mark to market value of its derivative positions during the third quarter was 5.2 billion pesos ($475 million).

Earlier this month, Comerci disclosed its debt had ballooned to $2 billion following massive losses on bets against the dollar using derivative instruments.

Comerci said in a separate release to the exchange Tuesday that it had filed a second request for legal protection from creditors after an initial bid was thrown out by a judge.

The company, which plans to present a restructuring plan even as some analysts think it may need to sell assets, also said it maintained a suspension on all the money it owes to creditors.



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