Gerdau’s Peruvian steelmaker, Siderperu, saw its net profit in Q4 decline 65 percent, year-on-year, to PEN 8.2 million ($2.5 million) on increased cost of sales due to the increased cost of semi-finished products and feedstock, the company said this week.
Siderperu’s net revenues in Q4 totaled PEN 382.9 million ($117.6 million), a marginal increase of 0.97 percent, year-on-year, which was due to increased sold volumes.
Cost of sales in Q4 rose nearly 6 percent, year-on-year, to PEN 350.1 million ($107.52 million). The company’s gross margin was 8.6 percent in Q4 2016, down from 12.9 percent in Q4 2015.
As for the fiscal year of 2016, Siderperu saw its net profit increase to PEN 100.4 million ($30.8 million) from PEN 14.3 million ($4.4 million) in the fiscal year of 2015.