America Movil shares plunge, weighing down Mexican market

By Julie Watson
ASSOCIATED PRESS

10:42 a.m. April 25, 2008

MEXICO CITY – Shares of America Movil, Latin America's largest mobile phone service provider, plunged Friday following a report that the company's first-quarter profit fell 5.5 percent.
CEO Daniel Hajj said in a conference call Friday that third-generation services such as wireless broadband in new markets would boost sales by year's end and help the company recover.


After the company, controlled by Mexican billionaire Carlos Slim, reported Thursday that its first-quarter profit fell to $1.3 billion, its stock fell 12 percent early Friday and dragged down Mexico's stock market index.
Hajj attributed the decline in earnings to spending on introducing 3G wireless networks in Mexico, Colombia, Peru, El Salvador, Honduras and Nicaragua. The company now offers 3G networks in 14 countries.

He also said higher financing costs resulting from an accounting change cut into profits.

“We feel that today America Movil is in a very good position,â€