Mexican ferroalloys and manganese producer Minera Autlan saw its net profit in Q1 decline to $3.4 million, from $14.2 million in the same quarter of the year prior, the company said while releasing its quarterly results.
Despite the decreased profit in Q1, Minera Autlan said net revenues in Q1 reached $89.3 million, 6.5 percent up, year-on-year, thanks mainly to increased ferroalloys and manganese selling prices.
Minera Autlan’s gross profit decreased 11.6 percent in Q1, year-on-year, to $30.8 million. The company’s EBITDA in Q1 dropped to $26.6 million, from $33.1 million in Q1 2017.
Minera Autlan said the outlook for the current year in Mexico remains positive, although one of the challenges and opportunities is the renewal of an existing 15 percent import tariff over certain steel imports from China and other countries that do not have trade agreements with Mexico.
The existing 15 percent tariff applies to imports of slab, CRC, HRC, heavy plate and wire rod. The duty was first introduced in October 2015 for six months and was renewed several times.