Grupo Modelo, Mexico's largest brewer, said on February 19 its fourth-quarter net profit dropped 11.8%, hit by a drop in national sales but propped up by exports. "The contraction in the domestic market is mainly due to economic factors negatively impacting sales in December," said Modelo, the maker of Corona beer, the top selling foreign brew in the United States. Modelo said net profit for the quarter was 815 million pesos, lower than market expectations.

Its shares are down 10 percent this year and trading midway between 12-month lows and highs. "As a result of a fall in national shipments and an increase in export volumes, total shipments of beer in the quarter grew 2.7%," Modelo said in a statement.

"The operating costs percentage is less than the growth in sales, a result of the austerity measures implemented by the company in a year characterized by economic uncertainty," Modelo said. Analysts said the results were a tad down from expectations but did not surprise. But they said the first quarter of 2003 would likely be weak because of the tepid domestic economy and the poor weather in the United States, its main export market. Modelo said earnings before interest, taxes, depreciation and amortization (EBITDA) rose 9.9% to 2.352 billion pesos, just lower than analysts' expectations. ($1 = 10.395 pesos at the end of December)

20 February, 2003