Mexican steelmaker Altos Hornos de Mexico (Ahmsa), may shut down after reporting a net loss of MXN2.65bn ($131.1mn) in Q1 2021 and a net loss of MXN21.5bn in 2020.
The steelmaker said in its earnings statement of Apr 30 that these losses indicate some uncertainty that could generate doubts about the company’s ability to continue as a steel business. Ahmsa did not disclose its steel production details.
Ahmsa first mentioned the possibility of shutting down after recording a net loss of MXN15bn in January-September 2020.
However, the steelmaker continues looking for funds or financing options to keep the ball rolling, and expects the Mexican government to approve its partnership with Alianza Minerometalúrgica Internacional (AMI) in the first half of this year. AMI is owned by the long steel producer Villacero, which has injected resources into Ahmsa so that it continues operating.
Ahmsa reported a net loss of MXN2.65bn in Q1, from a net loss of MXN5.21bn in Q1 2020. The steelmaker posted an EBITDA loss of $27mn in Q1, from an EBITDA loss of $122mn in Q1 2020. The company’s net sales dropped by 10.2pc to MXN7.32bn in Q1, down from MXN8.15bn in Q1 2020.
($1=MXN20.27)