Mexican steel manufacturer Simec Group reported a 34 percent decrease in its operating income in the first quarter, due to higher cost of sales.
In its report submitted to the Mexican Stock Exchange (BMV ), the company, which counts Guadalajara Steel Company among its subsidiaries, reported that from January-March operating income was $254 million pesos (US$19.5 million), against $387 million pesos (US$29.7 million) for same period last year.
"With respect to sales, the operating margin represents 4 percent in the first quarter of 2014, compared with 6 percent in the first quarter of 2013. The decrease in operating income was mainly caused by a higher cost of sales," the company said in the statement.
Its sales in value increased 2 percent to $6,582 billion pesos (US$506.3 million) thanks to higher prices, although tonnage registered a slight decline, from 531,000 tons in January- March 2013, to 530,000 in the same period this year.
