Comercial del Acero (Comasa), Peru's largest flat steel service center chain, saw its profits plunge in the second quarter but kept net sales similar year on year, according to quarterly earnings reports released Wednesday.
The flat steel-focused service center's Q2 profits plunged 43.2% to Nuevo Sol 7.5 million ($2.3 million) from Nuevo Sol 13.21 million in the year-ago quarter. Comasa's Q2 profit decreased 32% from Nuevo Sol 11.04 million in Q1.
In the first half of 2017, profit increased 11.7% year on year to Nuevo Sol 18.73 million from Nuevo Sol 16.77 million, "mainly due to the selling margin," the company said.
Net sales at Comasa decreased 1% to Nuevo Sol 101.42 million from Nuevo Sol 102.46 million in Q2 2016. Comasa's Q2 net sales decreased 4.1% from Nuevo Sol 105.76 million in Q1.
In the first half of 2017, net sales increased 5% year on year to Nuevo Sol 207.19 million from Nuevo Sol 197.32 million "due to higher volume sold," the company said in its quarterly report.
The service center did not disclose information about prices or volumes shipped.
Comasa said although it serves all economic sectors, is mainly concentrated on the mining and construction sector.
"The organization expects the government to expedite mining projects as a growth strategy," it said. "We also believe that the growth of the construction sector will increase, although in a lower percentage of growth than previous years."
Comasa focuses more on the flats market and it specializes in the sale of domestic and imported tubes and sheets. Peruvian longs producer Aceros Arequipa holds a stake in the company.
