The Mexican steel company Simec, with operations in Mexico, the US and Brazil, recorded a 7.1 percent drop in its net profit in the third quarter of the year, totaling MXN 1,802 million ($95.9 million), according to the company's financial balance sent to the Mexican Stock Exchange (BMV).
The drop in net income was attributed to a 28.3 percent reduction in average steel prices and a slight 1.8 percent decline in sales volume.
The average price decreased 28.3 percent to MXN 17,804/mt ($947/mt). The most pronounced decrease was in commercial profiles with 31.4 percent, equivalent to $847/mt. The decrease in the average price of special steel was 19.2 percent, equivalent to $1,190/mt.
Simec sold 531,000 metric tons (mt), 1.8 percent less compared to the volume of the third quarter of last year. The volume of special steel decreased 8.8 percent to 155,000 mt. In contrast, the volume of commercial profiles increased 1.3 percent to 376,000 mt. The commercial profile contributed 70.8 percent of the total volume.
The value of net sales decreased 29.6 percent, going from MXN 13.4 billion in the third quarter of last year to MXN 9.5 billion ($503 million) in the July-September period of the current year.
EBITDA decreased 27.2 percent to MXN 2,079 million ($111 million).
In the accumulated nine months, sales in Mexico contributed 58 percent with $1.0 billion, Brazil and the United States contributed 42 percent with $722 million.