Despite higher revenues, Peruvian steelmaker Aceros Arequipa saw its net profit decline 38.1 percent in Q1, year-on-year, to nearly PEN 18 million ($5.5 million), the company announced while releasing its quarterly results.
The steelmaker said net revenues in Q1 totaled PEN 555 million ($170.8 million), 5.8 percent up, year-on-year, and 8.5 percent up, quarter-on-quarter, attributed to increased steel sales volumes.
Aceros Arequipa’s gross profit in Q1 was PEN 58 million ($17.8 million), 47 percent down, year-on-year, and 22 percent down, quarter-on-quarter, on lower steel sales prices.
The company reported a 10 percent gross margin in Q1, down from a 21 percent gross margin in Q1 2016 and down from a 15 percent gross margin reported in Q4 2016.
The Peruvian steel producer said EBITDA in Q1 dropped 52 percent, year-on-year, to PEN 39 million ($12 million).
USD = PEN 3.24 (May 3)