Mexican steelmaker Grupo Simec reported net earnings of US$ 266 million in 2016, compared with a US$ 163 million net loss in 2015. The rebound is attributed to higher domestic sales and increasing steel prices, said the company in a brief to local stock market regulators.
Sales increased to US$ 1.28 billion from US$ 1.22 million in 2015, mostly due to an 8% increase in domestic sales to US$ 765 million, with exports flat at US$ 529 million.
Domestic sales were lifted by a 4% rise in volume, plus higher prices. Total volume shipped was 2.11 million tons, up from 2.03 million in 2015.
In addition to increased sales, cost of sales fell 17% to US$ 1.05 billion, with cost per ton of steel down 20% as a result of lower input costs.
Simec, a subsidiary of Mexico's Industrias CH, announced in 2015 plans to build a US$ 600 million special bar quality steel plant with a yearly capacity of 600,000 tons aimed for the automotive industry. Production is expected to begin this year.
* Original figures shown in Mexican pesos converted to US dollars at a 20:1 exchange rate.