Steel Mills
Dismal Quarter for Mexican Steelmaker AHMSA
Written by Sandy Williams
October 29, 2019
Mexican steel maker Altos Hornos de México, S.A.B. de C.V. (AHMSA) earnings in the third quarter of 2019 declined across the board due to unfavorable steel market conditions.
AHMSA EBITDA plummeted 149.6 percent from 3Q 2018 for a loss of $40.4 million. EBITDA in the steel segment plunged 132.1 percent for a loss of $31 million compared to positive EBITDA of $96.6 million a year ago.
Net sales fell 34 percent driven by lower prices and weaker demand for core products. Shipments slid 16.9 percent to 733,000 metric tons year-over-year. Cost of sales decreased by 19 percent due to lower production volumes.
In an effort to reduce expenses, the company imposed strict cost control measures during the quarter, including selling properties, aircraft, vehicles and other assets not required for AHMSA operations.
“AHMSA is exploring various capitalization options and/or associations with a variety of industrial and financial groups; there is, however, no agreement at this time,” wrote AHMSA in a press release.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
AISI: Raw steel production ticks back down
US raw steel output declined last week after increasing the week prior, according to the latest data from the American Iron and Steel Institute (AISI). Output has see-sawed from week to week since mid-August. Still, it has remained historically strong over the past four months and has held near multi-year highs since June. Domestic mills […]
Gerdau reshapes North American footprint as tariffs squeeze long steel imports
Gerdau is repositioning its North American business to capitalize on a sharp shift in steel trade flows driven by elevated tariffs across the US, Canada, and Mexico.
CRU: Interest in AHMSA is growing
Representatives of at least six companies interested in acquiring AHMSA have reportedly begun to carry out physical inspections of the insolvent company’s assets.
USW urges Algoma to diversify product line as $500M lifeline meets wider Q3 losses
The United Steelworkers (USW) is pushing for transparency after Algoma Steel announced earlier this week that it has received CA$500 million in financing from the Canadian government.
Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.