Gerdau-owned Peruvian steelmaker Siderperu saw net profit surge in Q1, from PEN 1.09 million in the same quarter of 2015 to PEN 31.1 million in Q1 this year, the company said.
According to the steelmaker, the increased profit was mainly due to a reduction in costs and expenses.
Siderperu’s revenues in Q1 declined 7.1 percent, year-on-year, to PEN 344.6 million, thanks to lower steel prices in the domestic market. Cost of sales in Q1 diminished 14.3 percent, year-on-year, to PEN 290.2 million, resulting in a PEN 54.3 million gross profit in the first quarter of the year, 67.5 percent up, year-on-year.
Siderperu’s gross margin in Q1 rose to 15.8 percent from 8.7 percent reported in the same quarter of the year prior.