Aceros Arequipa reports sharp sales increase in late-2007

Sales of Peruvian longs producer Aceros Arequipa increased 19% in the fourth quarter of 2007, compared to the same period of 2006. The company’s Q4 shipments came to 161,000 tonnes, boosted by the expansion of the country’s construction sector.

As previously reported by Steel Business Briefing, longs consumption sharply increased in Peru due to reconstruction work after the earthquake that shook the country last August.

According to Arequipa’s report, the company’s revenue last year reached PEN 1.34bn (US$446m), a 14.5% increase over the PEN 1.17bn in 2006 sales.

However, higher operating costs reduced the steelmaker’s net profit from PEN 143m to PEN 107m, in the same comparison. SBB learns that imports to supply the growing demand pressured Arequipa’s operating margins, although the company expanded its own capacity to 530,000 t/year in mid-2007.

Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: February 12, 2008