ICH’s long-term strategy, according to its quarterly report, includes increasing its installed steelmaking capacity either through acquisition or installation of new plants. The company will seek to evaluate acquisition opportunities in Mexico and abroad, including the US and Canada. ICH will continue investment plants in Apizaco, Tlaxcala, San Luis Potosí, SLP, and Monclova, Coahuilla. ICH expects strong 2021 sales to surpass 2018 and 2019 results.
Mexico’s Industrias CH (ICH) increased its sold steel shipments by 6pc to 742,000mt in Q1 2021 against 702,000mt in the same quarter of the prior year. The commercial sector led with 483,000mt or 65pc, followed by the specialty steel segment with 256,000mt or 35pc.
ICH rose its sales revenue by 52pc to MX9.6bn ($477mn) in Q1 2021 compared to the same quarter in 2020. Export sales climbed by 55pc to MXN6.8bn in Q1 2021 against MXN4.4bn in the same year-ago quarter. Domestic sales rose by 48pc to MXN7.7bn in Q1 2021 compared to the year-ago quarter. Sales prices per tonnage climbed by 43pc in Q1 2021 against the same quarter of the prior year.
Cost of goods rose by 40pc to MXN11bn in Q1 2021 against MXN7.9bn in Q1 2020. As a percentage of total sales, cost of goods actually fell to 76pc in Q1 2021 compared to 82pc in the same year-ago quarter. EBITDA leaped by 95pc to MXN3.3bn in Q1 against MXN1.7bn in the year-ago quarter. Net profit rose by 27pc to MXN2.8bn compared to a year ago.