Mexican steel company Simec, with operations also in the United States and Brazil, registered a 72.7 percent drop in its net income in the second quarter of the year, totaling MXN 985 million ($57.1 million), according to the company's financial statement sent to the Mexican Stock Exchange (BMV).
The drop in net income was attributed to several factors, according to the company. Total sales volume decreased 9.2 percent to 505,000 metric tons (mt), average prices decreased 28.3 percent to MXN 20,044/mt ($1,162/mt) and higher expenses (administration and sales) went from 3.9 to 5.1 percent of sales.
Net sales decreased 34.9 percent, going from MXN 15.5 billion in the second quarter of last year to MXN 10.1 billion ($587 million) in the April-June period of the current year. EBITDA decreased 44 percent to MXN 2,460 million ($143 million).
In the second quarter of 2023, the sales volume of sections decreased 2.5 percent to 354,000 mt (70.1 percent of the total) with an average price of MXN 18,568/mt ($1,076/mt). The volume of special steels decreased 21.8 percent to 151,000 mt, with an average price of MXN 23,503/mt ($1,362/mt), 25.3 percent less than in the second quarter of last year.
In the first half of the year, sales in Mexico contributed 59 percent with $785 million, Brazil contributed 32 percent with the equivalent of $428 million, and operations in the United States contributed 9 percent with $117 million.
As of June, the company registered a payroll of 5,009 workers, 83 fewer people compared to the same month last year.