Mexico's Grupo Bimbo says first-quarter profit falls 10 pct

Reuters

MEXICO CITY, April 29 (Reuters) - Mexico's Grupo Bimbo , one of the world's largest bread makers, on Tuesday reported a 10 percent drop in first-quarter profit, hurt by one-time charges in its U.S. business.

The company reported a profit of 513.4 million pesos ($39.3 million) in the quarter, compared with 569.5 million pesos a year earlier.

Bimbo took a $45 million charge related to its U.S. business, where it is in the process of closing some plants and building and modernizing others.

Sales at Bimbo, whose brands include Thomas' English Muffins, Entenmann's cakes and Tia Rosa tortillas, rose 1.27 percent to 41.979 billion pesos.

Bimbo said earlier this year it would buy rival Canada Bread Company for $1.66 billion in cash, its latest in a string of large North American takeovers.

Shares of Bimbo closed up 2.18 percent on Tuesday at 37.89 pesos.

(Reporting by Elinor Comlay and Christine Murray; Editing by Steve Orlofsky)

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