Gerdau’s Peruvian steelmaker Siderperu increased its net profit in Q3 to PEN 26.2 million ($7.78 million) from PEN 3.6 million ($1.06 million) in the same quarter of the year prior, despite decreased revenues in the same period.
The company attributed the increased net profit to a reduction in costs and expenses, and thanks to a stronger stability of the Peruvian currency.
Siderperu’s cost of sales in Q3 was PEN 317.2 million, 11.8 percent down, year-on-year, due to lower prices for semi-finished products, cheaper raw materials and a strong decline in the company’s operational costs.
Gross profit in Q3 was PEN 40.7 million, 68.5 percent up, year-on-year. Gross margin in Q3 rose to 11.4 percent from 6.3 percent in Q3 2015. Net revenues in Q3 declined 6.8 percent, year-on-year, to PEN 357.9 million, Siderperu said.
USD = PEN 3.36 (November 1)