The Mexican steel company Simec, with operations in Mexico, the United States and Brazil, recorded net income of MXN 3,979 million ($216.3 million) in the second quarter of the year, rising by 303.8 percent compared to the same period last year, according to the company's financial statements reviewed by SteelOrbis.
Simec reported that its sales decreased 17.1 percent to the equivalent of $456.4 million in the second quarter, compared to the same period last year.
Despite lower sales, sales and administrative costs increased 12.7 percent to the equivalent of $31.6 million. Operating income decreased 31.4 percent to $81.4 million.
According to the company, in the second quarter its sales volume increased 6.1 percent or 35,000 metric tons (mt) to 536,000 mt. Of that total, sale of merchant bars totaled 392,000 mt, up 10.7 percent compared to the same quarter last year. Simec sold 144,000 mt of special steel, down 4.6 percent year on year.
The average price of Simec's special steels decreased 22.1 percent to MXN 18,319/mt ($996.1/mt), of merchant bars decreased 20.9 percent to $798.5/mt. The total average price decreased 21.9 percent to $851.5/mt
The company also reported that the decrease in the price of metal scrap drove a 20 percent drop in the cost of sales per ton of finished steel.