Gerdau’s Peruvian steelmaker Siderperu saw its net profit in Q1 decline 64.5 percent, year-on-year, to PEN 11 million ($3.3 million), the company said.
Net revenues in Q1 fell 13.9 percent, year-on-year, to PEN 297 million ($91.4 million), due to decreased finished steel prices in the domestic market combined with declined steel sales volumes. The company said the El Nino phenomenon, the unusual warming of surface waters in the eastern tropical Pacific Ocean that results in heavy storms, also contributed to the declined revenues.
Siderperu said cost of sales in Q1 dropped 5.9 percent, year-on-year, to PEN 273 million ($84.05 million).
The company’s gross profit in Q1 was PEN 24 million ($7.39 million), down from a gross profit of PEN 54 million ($16.6 million) reported in the same quarter of the year prior.
Siderperu noted gross margin in Q1 fell to 8.2 percent from 15.8 percent in Q1 2016.