Mexican steel company Grupo Simec, with operations also in the United States and Brazil, registered a 58.6 percent drop in its net profits for the first quarter (Q1) of 2023, totaling MXN 1.03 billion ($55.8 million), according to the financial statement sent to the Mexican Stock Exchange.
The drop in profit was attributed to lower sales volume and lower prices for finished steel products. Sales volume decreased 3.0 percent to 604,000 metric tons. Average prices decreased 12.0 percent to MXN 21,233/mt ($1,148/mt) and a 13.3 percent increase in operating expenses.
EBITDA decreased 17.9 percent to MXN 2.96 billion (about $159.9 million).
Simec's plants in the United States and Brazil contributed 40 percent of total sales with the equivalent of $280 million, and sales in Mexico contributed 60 percent with $413 million.