Grupo Collado, one of the largest steel service centers in Mexico, recorded a 97.9 percent drop in its third quarter net earnings, going from MXN 112 million to only MXN 2.4 million ($129,200), the company reported to Mexican Stock Exchange (BMV).
The annual contraction of total profits was due to an 8.3 percent drop in the value of sales, according to the company. However, the cost of sales recorded a steeper decline of 11.4 percent. Thus, gross profit increased 2.5 percent to the equivalent of $38.9 million.
Sales for the July-September period decreased 8.3 percent to the equivalent of $155 million. 74.2 percent was in sales to the national market and 25.8 percent in exports.
According to Grupo Collado, in the first four months of 2023, the price of steel maintained an upward trend and in the following five months (May to September) it registered a downward price trend. Prices in the January-September period of this year, compared to the same period last year, said Collado, decreased 22.7 percent.
Grupo Collado is one of the largest steel processors in Mexico with 11 plants, 7 warehouses and 22 sales offices.