MONCLOVA, COAHUILA / ACCESSWIRE / October 26, 2018 / Altos Hornos de México, S.A.B. de C.V. and Subsidiaries (“AHMSA” or “the Company”) (BMV: AHMSA) reported financial results for the third quarter period ended September 30, 2018 (3Q 2018). Financial and operating figures included in this report are unaudited and are based on AHMSA’s operating figures and financial statements; they are prepared in accordance with International Financial Reporting Standards (IFRS) and are expressed in U.S. dollars (US$) and metric tons (MT).
3Q 2018 Highlights
- Adjusted EBITDA reached US$ 82 million, a 70% YoY increase compared to US$ 48 million in 3Q 2017.
- Steel Segment Adjusted EBITDA increased 75% to US$ 97 million in 3Q18 from US$ 55 million in 3Q 2017.
- Steel shipments were 881 thousand MT, a 6% decrease compared to the same period in 2017.
- Average price per ton increased by 28%, due to favorable market conditions for the Company.
- Net Sales rose by 21% compared to 3Q 2017, driven primarily by an optimum product mix distribution as well as price improvements.
- Cost of sales increased by 15% compared to 3Q 2017, mainly due to higher raw material costs and higher raw material usage.
- Steam Coal Segment adjusted EBITDA reported a loss of US$ 9 million compared to a US$ 2 million loss in 3Q 2017. The following factors led to the bigger loss this quarter:
- Reduction in the monthly shipment volume requested by CFE.
- Lower volumes reduced operating leverage and therefore led to an increase in unit costs of goods sold.
Corporate Strategy Update
- AHMSA currently maintains a number of strategic investments:
- With regards to the progress rate for the iron ore recovery program, Proyecto Artemisa is advancing as scheduled and we expect that this project will conclude by the end of the year.
- AHMSA continues to move forward on the repairs of 35 coke ovens at our #1 Coking Battery. As a result, we expect to increase annual coke capacity at this plant by approximately 177 thousand MT.
- In preparation for AHMSA’s return as a traded entity on the Mexican Stock Exchange (BMV), we are developing an investor relations strategy, including a complete redesign of AHMSA’s corporate web site. Our objective is to enhance transparency and strengthen communications with the capital markets.
The complete version of this document is available at
http://ir.ahmsa.com/ in Spanish and at
http://ir.ahmsa.com/en/ for the English version.
CFE. Comisión Federal de Electricidad (Federal Electricity Commission).
IR Contacts:
SOURCE: Altos Hornos de México, S.A.B. de C.V.