Grupo Simec reports reduced income

Guadalajara, Mexico-based steelmaker Grupo Simec S.A.B. de C.V. has reported a 52 percent decrease in net income for the first three quarters of 2017 compared with its results in the first nine months of 2016.

Year to date, the company says its net sales have increased 12.2 percent to 21.9 billion pesos ($1.16 billion) in the first nine months of 2017 from 19.5 billion pesos ($1.03 billion) in the first nine months of 2016. The company’s cost of sales, however, increased by 14 percent year on year and its operating income has decreased by 4 percent.

Shipments of finished steel products decreased 1 percent year on year at Grupo Simec, though the average sale price for its steel increased by approximately 13 percent, the firm says.

Referring to those circumstances and others, the company states in remarks accompanying its financial results, “As a result of the foregoing, the company recorded a decrease in net income of 52 percent” in the first nine months of 2017 compared with the same period in 2016.