Ferromex Q4 profit grows 38%

Mexican railroad company Ferromex's fourth quarter 2004 net profits jumped 37.8% to 975mn pesos (US$87mn) from profits of 708mn pesos during the same year-ago period, Ferromex told Mexico City's bourse (BMV). During the period revenue increased 9.1% to 7.4bn pesos, due principally to a 14.9% increase in transported tonne/km, from 28.2B tonne/km in the year before period to 32.4B tonne/km 4Q04. However, increased transport also meant an increase in operational costs, with a 33.7% jump in diesel costs. As such, operational costs grew 12.2% to 4.7bn pesos. Operational profit for the period was up 17.2% to 1.7bn pesos. Ferromex (Ferrocarril Mexicano), formed by Mexican mining-transport conglomerate Grupo México (74%; BMV: GMEXICOB) and US-based railway operator Union Pacific (26%; NYSE: UNP), operates 10,461km of railway, representing the highest coverage within the national railway system. The rail company connects the main cities in Mexico, reaches five stations on the border with the US, as well as four ports on the Pacific Ocean and two on the Gulf of Mexico.