Tags: Quinenco | BCH | CCU | Chile

Quiñenco Rises on Strong Local Economy

By    |   Friday, 19 Aug 2011 11:51 AM

Chilean holding company Quiñenco (QUINENCO), controlled by the powerful Luksic family, is enjoying a profitable 2011 on a healthy South American economy.

Net income for the first quarter of 2011 came to $111 million, up 9 percent increase from the first quarter in 2010, thanks to strong business at its Banco de Chile (BCH) banking unit, insurance affiliate Banchile Seguros de Vida, and at Madeco, a manufacturer of copper products and other metals.

The company's CCU (CCU) subsidiary, a brewer, also reported healthy business. Net income there rose by 35.2 percent while its financials also benefited from a favorable insurance settlement in wake of the 2010 earthquake.

In short, a strong economy fueled strong earnings at a holding company in the right lines of business.

"The contribution of operating companies during the first quarter of 2011 was boosted by higher results at Banco de Chile, due to the positive local economic scenario, positive rate of inflation, at CCU based on improved operating income together with an insurance settlement corresponding to operational losses caused by the 2010 earthquake, and also at Madeco, due to higher operating income from its flexible packaging and profiles units, and a non‐recurring gain from the sale of its stake in Nexans Colombia," the company says in an earnings statement, referring to its Colombian metal products maker.

Healthy banks

Quiñenco said operating revenues among its financial holdings during the first quarter amounted to $635.6 million, up 5.7 percent from the first quarter of 2010, mainly due to growth in fee income at Banco de Chile.

The company also spent the first quarter of the year on an acquisition spree.
It bought a 10 percent stake in Compañía Sud Americana de Vapores, a Chilean shipping company, for $121 million and its Madeco unit agreed to raise its stake in French cable maker Nexans to 20 percent from 9 percent, in a $290 million deal that came in wake of the sale of the Colombian and other units announced in 2008. The company next reports in early September.

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Chilean holding company Quiñenco (QUINENCO), controlled by the powerful Luksic family, is enjoying a profitable 2011 on a healthy South American economy. Net income for the first quarter of 2011 came to $111 million, up 9 percent increase from the first quarter in 2010,...
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Friday, 19 Aug 2011 11:51 AM
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