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By Lorraine Orlandi
MEXICO CITY, Oct 28 (Reuters) - Mexican conglomerate Grupo Carso posted higher sales and earnings for the third quarter as its industrial unit began bouncing back from economic doldrums, though net profit fell.
Carso, a retail and industrial conglomerate, said its net profit was 156 million pesos ($14 million), down from 249 million pesos in the third quarter last year and below the 380 million pesos forecast by analysts in a Reuters survey.
Earnings before interest, taxes, depreciation and amortization (EBITDA), considered by some analysts as a more reliable indicator of profitability in Mexico than the bottom line, rose 3 percent in the quarter to 2.364 billion pesos, higher than analysts' estimates.
Revenue rose 5.9 percent to 13.866 billion pesos, also beating analysts' expectations.
"The stability of the retail sector, along with the recovery of the industrial sector, contributed to the improvement of financial results," Carso said in a statement.
Carso is part of the business empire of Latin America's richest man, Carlos Slim.
Its net profit was hit by taxes, a depreciating peso that resulted in foreign exchange losses, and by a one-time charge for the shutdown of an aluminum production plant during the quarter, said analyst Luis Miranda at Santander brokerage in Mexico City.
Overall, the results were "better than expected, especially at Condumex," said analyst Estefaan Peeters of Accival.
Carso's Condumex unit, which produces cables for the construction, auto and telecommunications sectors and represents about a quarter of total Carso sales, made a positive showing as sales in the telecommunications sector rebounded after several consecutive weak quarters.
The unit posted increases of nearly 20 percent in sales and operating profit year-on-year.
But retail operations, which represent a third of consolidated sales and include Grupo Sanborns , were pressured by the cost of promotions and lackluster consumption.
Sanborns sales rose a bare 0.8 percent, while revenue at Sears stores fell 2.3 percent.
Still, analysts have said Carso's future will brighten if the Mexican economy picks up as expected.
Carso shares fell 0.15 percent on Tuesday to 33.60 pesos before the results were announced. The stock is up around 31 percent this year, compared with a gain of 29 percent for Mexico's IPC index of leading shares . ($1=11 pesos at end of third quarter)