Banorte, Bimbo, Cosan, Televisa, Vale: Latin Equity Preview

By Paulo Winterstein and William Freebairn

Oct. 24 (Bloomberg) -- The following companies may have unusual price changes today in Latin America trading. Stock symbols are in parentheses, and share prices are from the previous close. Preferred shares are usually the most-traded class of stock in Brazil.

Brazil's Bovespa index futures dropped 7.4 percent to 31,660 at 8:37 a.m. in New York. The MSCI Latin America Index fell 1.5 percent to 1,873.05 yesterday.

Brazil

Banco Panamericano SA (BPNM4 BS): Media owner and controlling shareholder Silvio Santos will convert 10.91 million Panamericano common shares into the same amount of preferred ones, the Sao Paulo-based bank said in a filing yesterday. After the transaction, the bank will have 131.9 million common shares and 119.5 million preferred shares outstanding. Panamericano preferred shares fell 3.3 percent to 2.90 reais. Common shares aren't traded.

Cremer SA (CREM3 BS): The Brazilian maker of medical supplies was upgraded to ``buy'' from ``neutral'' at Merrill Lynch & Co., which said the Brazilian maker of medical supplies may report ``solid'' third- quarter earnings. Cremer gained 11 percent to 8.37 reais.

Cia. Vale do Rio Doce (VALE5 BS): The world's biggest iron- ore exporter said third-quarter net income surged 64 percent to $4.82 billion. A year earlier, net income was $2.94 billion, based on U.S. accounting standards, Vale said yesterday in a statement. Sales rose 49 percent to $12.12 billion, from $8.12 billion. Vale fell 3.3 percent to 23.30 reais.

Cosan SA Industria & Comercio (CSAN3 BS) and Sao Martinho SA (SMTO3 BS): Brazil's government may help finance the sugar and ethanol industry, Agencia Estado reported yesterday, citing Dilma Rousseff, President Luiz Inacio Lula da Silva's chief of staff. Estado didn't give details and reported that Rouseff said private banks must be the producers' first recourse. Cosan and Sao Martinho are Brazil's largest publicly traded sugar and ethanol producers. Cosan fell 4.3 percent to 10.10 reais. Sao Martinho fell 15 percent to 11 reais.

Sadia SA (SDIA4 BS), Lojas Americanas SA (LAME4 BS) and GP Investments Ltd. (GPIV11 BS): Sadia, Brazil's second-biggest food company, retailer Lojas Americanas and private equity company GP Investments will likely report ``weak'' third-quarter earnings, Itau Corretora said. Losses from currency derivatives and higher financing costs will likely cause the three companies to report net losses, reversing profit from the year-earlier period. Sadia, which reports Oct. 29, fell 3.7 percent to 4.48 reais. Lojas Americanas rose 5 percent to 5.25 reais. GP fell 0.7 percent to 6.80 reais. Lojas Americanas and GP report next month.

Chile

Sociedad Quimica y Minera de Chile SA (SQM/B CC): Potash Corp. of Saskatchewan Inc., the world's largest producer of crop nutrients by market value, said third-quarter profit increased fivefold as fertilizer prices advanced. Soquimich, as Chile's biggest fertilizer is known, fell 3.4 percent, or 11,526 pesos.

Mexico

Grupo Bimbo SAB (BIMBOA MM): Mexico's largest maker of bread reported a 9 percent gain in third-quarter profit as price increases offset higher commodity prices. Net income rose to 1.36 million pesos and sales gained 12 percent to 20.6 billion pesos, the company said in a filing yesterday. Bimbo fell 3.9 percent to 54.73 pesos.

Grupo Financiero Banorte SAB (GFNORTEO MM): Mexico's biggest publicly traded bank said third-quarter net income rose 15 percent to 2 billion pesos, or 1 peso a share, from a year earlier. The company was expected to earn 99 centavos a share, according to the median estimate of seven analysts surveyed by Bloomberg. Banorte fell 1.4 percent to 21.33 pesos.

Grupo Televisa SA (TLEVICPO MM): The world's largest Spanish-language broadcaster said third-quarter profit fell as broadcast advertising revenue growth slowed with Mexico's economy. Net income declined 9.6 percent to 2.07 billion pesos ($155.6 million), Televisa said yesterday in a statement. Sales rose 21 percent to 12.5 billion pesos. Analysts projected 2.38 billion pesos in net income and 12.58 billion pesos in sales, the averages of three estimates in a Bloomberg survey. Televisa fell 5 percent to 38.22 pesos.

To contact the reporters on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net. William Freebairn in Mexico City at wfreebairn@bloomberg.net.