Altos Hornos de México and subsidiaries (AHMSA) reported to the Mexican Stock Exchange (BMV) its financial results for the year 2012, a period which saw annual EBITDA decrease by 3.697 million pesos (US$289,300).
Operating income for the year was 13.61 million pesos (US$1.07 million), while consolidated net income dropped by 408,425 million pesos (US$31,960) and sales revenue decreased 3.9 percent year-on-year.
Alonso Ancira Elizondo, CEO of AHMSA, said the results of 2012 reflect adverse market conditions, the importation of large volumes of unfairly traded steel, and artificially low prices.
He said that while domestic production decreased 2 percent in 2012, imports increased an average of 38 percent for the year--and for countries that do not have trade agreements with Mexico, the increase was 170 percent.
Mexico's National Chamber of Iron and Steel Industry (CANACERO), of which Elizondo serves as President, has consistently urged government authorities to react to the import situation by adopting temporary tariffs.
Additionally, Elizondo said that the new Proyecto Fénix mill has entered its final stage of construction, with the new line of steel plate to start production once the probationary period ends this month; the electric arc furnace is 90 percent completed and will start operations this same year.
Full operation of the new facility will generate more than 1,500 jobs, strengthen the profitability and competitiveness of the company, create a better cost scale, and allow market products with high added value to compete with imports, said Elizondo.
