Mexican steelmaker Simec, with operations in Mexico, the United States and Brazil, posted net income of MXN 3.15 billion, which at today's exchange rate is equivalent to $153.1 million in the third quarter of the year, a figure that in pesos represented an increase of 74.9 percent compared to the same period last year, according to the company's financial statements reviewed by SteelOrbis.
Simec reported that its sales decreased 9.6 percent to the equivalent of $415.2 million (considering an exchange rate of MXN 20.59 pesos per dollar) in the third quarter, compared to the same period last year.
Despite lower sales, sales and administration expenses increased 35.7 percent to the equivalent of $32.0 million. Operating profit decreased 16.1 percent to $74.0 million.
However, net income increased 74.9 percent to the equivalent of $153.1 million. According to the financial statements, viewed by SteelOrbis, these gains were the result of net financial income equivalent to $101.9 million.
According to the company, in the third quarter of the year, sales volume decreased 1.9 percent to 521,000 metric tons (mt) for a total of 536,000 mt for the period. Of that total, merchant bars totaled 368,000 mt, 2.1 percent less than between July and September of last year. Simec sold 153,000 mt of special steel, 1.3 percent less in the period of analysis.
The average price of Simec's specialty steels decreased 14.1 percent to MXN 19,209/mt ($933/mt), the price of merchant bars decreased 4.2 percent to $740/mt. The total average price decreased 21.9 percent to $851.5/mt.