Aceros Arequipa's Plummeting Q3 Profits

Corporación Aceros Arequipa
Corporación Aceros ArequipaImage Source: Corporación Aceros Arequipa


Corporación Aceros Arequipa, a steel producer in Peru, experienced a 95% drop in net profits for Q3 2023, recording just $516,800. Sales, operational profits, and EBITDA also saw declines. The company attributes the poor performance to lower international sales prices and other negative factors.


Corporación Aceros Arequipa, one of Peru's leading steel producers, recently reported a significant decline in its financial performance for the third quarter of 2023. The company's net profit for this period was just $516,800, a staggering 95% decline compared to the same quarter in 2022.

Net sales weren't faring much better, recording an 11.8% decrease to $293,369. This was accompanied by a 30.7% reduction in gross profit, which stood at $32,048, and a 42% fall in operational profit to $17,853. EBITDA, a key financial indicator, also plummeted by 28.5% to $29,221.

According to Aceros Arequipa, this significant downturn in financial performance is due to a combination of negative factors. These include lower international sales prices, an increased ratio of export sales at average prices lower than domestic sales, and increased losses in its subsidiary companies.

To provide context to these figures, the currency conversion rate as of October 27, 2023, was $1 = PEN 3.87. This helps to better understand the financial landscape the company is navigating.

Despite these challenges, the company has not released any statements regarding strategic shifts or mitigative measures they plan to implement. This leaves stakeholders and market watchers keen to understand the company’s next steps in the wake of such a disappointing quarter.

These financial setbacks raise concerns not just for Aceros Arequipa but also for the broader steel industry in Peru. A decline of this magnitude might indicate broader issues affecting the sector, requiring in-depth analysis and potentially necessitating changes at both company and industry levels.


The third quarter of 2023 was tough for Corporación Aceros Arequipa, with alarming declines in profits and other financial metrics. Attributed to a mix of domestic and international challenges, the company's poor performance is a red flag for stakeholders. As of now, the company has not indicated any plans for a strategic turnaround, making its future steps critically important in an already difficult market.

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