Gerdau’s Peruvian subsidiary Siderperu saw its net profit decline 66 percent in Q2, year-on-year, to PEN 11.8 million ($3.6 million) on increasing cost of sales, the company said while releasing its quarterly results.
According to Siderperu, net revenues in Q2 fell 19.1 percent, year-on-year, to PEN 295 million ($91 million) due to diminished sales volumes along with a “strong decline in gross revenues by mt,” which in turn was fueled by a weak domestic economy and a weak civil construction activity.
Cost of sales in Q2 declined to PEN 268 million ($82.6 million) from PEN 310.7 million ($95.8 million) in the same quarter of the year prior, while gross profit in Q2 was PEN 26.6 million ($8.2 million), 50.6 percent down, year-on-year.
Siderperu’s gross margin in Q2 dropped to 9 percent from 14.8 percent in Q2 2016.
USD = PEN 3.23 (August 2)