Benefits for the stability of steel demand and prices, as well as meeting production schedules and sales, Altos Hornos de Mexico reported strong results for the third quarter of the year 29% increases in sales, 151% in operating profit, 71% in EBITDA and 111% in net income.

Sales in the quarter showed a growth of 29%, adding MXN 10.600 billion. The accumulated sales totaled MXN 30.129 billion in September 2011, an increase of 21.8% compared to the first nine months of 2010.

Operating income for the quarter amounted to MXN 991 million, a figure 151.5% higher than that reported in the period from July to September 2010. EBITDA for his part added MXN 1.805 million, which represents a growth of 71.6% over the same period last year.

For the first three quarters of cumulative EBITDA amounted to MXN 5.806 billion, an increase of 63.1% compared to the first nine months of last year. Finally, net profit between July and September reached MXN 450 billion, an increase of 111.3% over the same period last year.

Mr Alonso Ancira Elizondo chairman of the board of directors of AHMSA said that third quarter figures reflect the relative demand and price stability was maintained in the markets during the period. He argued that the positive results had to support strict enforcement of production and sales programs designed by the company for both its steel and mining units.

Mr Ancira said the company continues developing the Fenix project, funded investment program designed to maximize own efficiency and profitability with 40% increase in production, ensuring the full long term viability of the plan restructuring of liabilities, and the replacement of steel imports currently performed by the country.

In this regard, he highlighted the performance of the new blast furnace 6, technical unit designed by the company to go into production in short time exceeded the rated capacity set at 4,000 tons of pig iron daily.

During the quarter, AHMSA environmental actions strengthened with the addition of new equipment in steel mills and mines, while that became fully developed the reforestation program in the surrounding communities, with the goal of delivering 300,000 trees per year from three nurseries own.

The company remains in talks with creditors to realize the effect of agreements for the renegotiation of liabilities.

(Sourced from www.elsemanario.com.mx)