Grupo Collado, one of the largest steel service and transformation centers in Mexico, recorded a 57.0 percent contraction in its net income for the first quarter of the year to MXN 39.1 million, a figure that at today's exchange rate is equivalent to $2.2 million, according to the company's financial statement.
Collado reported that in the first three months of the year, sales totaled the equivalent of $152.3 million, a figure that in Mexican currency decreased 13.9 percent compared to the first quarter of last year.
According to Collado, the decrease in billing was the result of the lower price of steel, lower economic activity and the appreciation of the Mexican peso against the dollar.
In the quarter, the Mexican currency appreciated 9.1 percent, which affected its international sales. Sales in the local market totaled $99.9 million and exports $52.4 million.
As of March, Grupo Collado registered a payroll of 3,756 people, 121 more people compared to December. The largest increase was in workers with 131 more to reach 2,919 people. The number of employees decreased by 10 people to 827 people and the number of senior officials remained unchanged at 10 people.
The company has one of its main commercial adversaries as an uncomfortable partner. Since 2010, Grupo Villacero, another steel processor and transformer, owns 29.7 percent of Grupo Collado's shares. That shareholding has pitted the two companies against each other in the Mexican courts.