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Financial information by segments
 12 Months Ended
Dec. 31, 2018
Disclosure of operating segments [abstract]  
Financial information by segments
22)Financial information by segments

 

The Company analyses its information by region, due to the operational structure and the organization of its business. Information used for making decisions is based on such regions. The Company’s sales are made mainly in Mexico and the United States of America. The Mexican segment includes the plants in Mexicali, Guadalajara, Tlaxcala and San Luis Potosi. The USA segment includes the seven Republic plants six of which are located in the United States (Ohio, Indiana and New York) and one in Canada (Ontario). The plant in Canada represents approximately 3% and 4% of the segment’s total sales in 2018 and 2017, respectively, of all the sales of the segment. The segments are engaged in the manufacturing and sale of long steel products intended mainly for the building and automotive industries.

 

  Year ended December 31, 2018  
  Mexico   USA   Brazil   Eliminations between segments   Total  
                               
Net sales $  20,507,794   $   9,246,444   $  5,924,015   $     $ 35,678,253
Cost of sales    (15,715,761)      (9,294,352)     (5,553,202)           (30,563,315)
                             
Gross profit (loss)   4,792,033     (47,908)     370,813           5,114,938
Administrative expenses        (592,218)           (267,905)        (219,889)           (1,080,012)
Other income (expenses), net         11,367       3,685                                            15,052
Interest income    307,279     5,542                 312,821
Interest expense           52,226           (99,985)          (103,141)           134,389           (16,511)
Exchange rate gain (loss), net   445,289     7,522     (602,747)     3,040        (146,896)
                             
Income (loss) before income taxes     5,015,976     (399,049)     (554,964)     137,429     4,199,392
                             
Income taxes        905,482           7,145            (160,165)           752,462
                             
Net income (loss) for the year $ 4,110,494   $ (406,194)   $ (394,799)   $ 137,429   $ 3,446,930
                               

 

 

Other information:

                              

Depreciation and

amortization

 $ 587,407   $ 268,635   $ 256,376         $ 1,112,418
                             
Total assets   40,617,874     10,181,967     6,733,362   $ (8,679,380)     48,853,823
                             
Total liabilities   8,458,465     10,815,692     2,750,043     (8,679,380)     13,344,820
                             
Acquisitions of property, plant and equipment   1,552,587     433,154     8,724           1,994,465

 

 

  Year ended December 31, 2017 As restated
  Mexico   USA   Brazil   Eliminations between segments   Total
                             
Net sales $  17,125,369   $  8,370,999   $  3,204,082   $     $ 28,700,450
Cost of sales    13,340,648      7,814,180      2,839,698           23,994,526
                             
Gross profit (loss)   3,784,721     556,819     364,384           4,705,924
Administrative expenses         (753,676)           (257,001)        (228,266)           (1,238,943)
Other income (expenses), net          (98,915)        105,849                                            6,934
Interest income    252,074      217                        252,291
Interest expense           (7,459)           (50,962)          (65,186)           69,203           (54,404)
Exchange rate gain (loss), net   (1,291,909)     (26,256)     1,861     661,942          (654,362)
                             
Income (loss) before income taxes   1,884,836     328,666     72,793     731,145     3,017,441
                             
Income taxes      786,902           322,444            13,463           1,122,809
                             
Net income (loss) for the year $ 1,097,934   $ 6,222   $ 59,330   $ 731,145   $ 1,894,631
                             

 

Other information:

                            
Depreciation and amortization $ 677,665   $ 538,699   $ 249,395         $ 1,465,759
                             
Total assets   32,878,144     10,548,895     5,356,860   $ (2,807,367)     45,976,532
                             
Total liabilities   1,134,438     10,760,999     2,570,925     (2,807,367)     11,658,995
                             
Acquisitions of property, plant and equipment   2,394,541     622,785     22,175           3,039,501

 

 

  Year ended December 31, 2016 As restated
  Mexico   USA   Brazil   Eliminations between segments   Total
                             
Net sales $ 16,361,808   $ 9,339,527   $ 1,814,230         $ 27,515,565
Cost of sales   13,724,880     7,332,094       1,718,619           22,775,593
                             
Gross profit (loss)   2,636,928        2,007,433     95,611             4,739,972
                             
Administrative expenses   (901,849)         (298,967)     (76,671)             1,277,487
Other income (expenses), net           (40,134)      1,481,573             (1,477,637)     (36,198)
Interest income    139,886                 147                                 140,033
Interest expense           15,053          45,120     50,980   $  (70,983)           40,170
Exchange rate gain (loss), net   2,343,393     42,727     765,684     (1,376,820)      1,774,984
                             
Income (loss) before income taxes   4,163,171     3,187,793     733,644     (2,783,474)     5,301,134
                             
                             
Income taxes   678,020     256,089     2,285           936,394
                             
Net income (loss) for the year $ 3,485,151   $ 2,931,704   $ 731,359   $ (2,783,474)   $ 4,364,740
                             

 

Other information:

                            
Depreciation and amortization $ 620,354   $ 551,650   $ 257,377         $ 1,429,381
                             
                             
Total assets   33,152,640     9,684,303     5,293,891   $ (6,463,293)     41,667,541
                             
Total liabilities   4,161,650     9,893,536     2,325,325     (7,940,930)     8,439,581
                             
Acquisitions of property, plant and equipment   2,169,375     816,586     114,298           3,100,259

 

Information on products:

  Year ended December 31,
  2 0 1 8   2 0 1 7   2 0 1 6
Light structural $ 1,654,720   $ 1,557,567   $

 

1,467,727

Structural   2,441,079     2,232,979     3,321,771
Bars   1,575,291     1,065,731     1,122,116
Rebar   12,363,530     8,931,862     7,449,278
Flat rebar   2,271,347     1,552,578     1,090,841
Hot rolled bars   9,549,286     8,594,130     7,729,167
Cold drawn bars   3,779,385     3,370,150     3,207,924
Others   2,043,615     1,395,453     3,126,741
  $ 35,678,253   $ 28,700,450   $ 27,515,565
                 

Information about geographical areas:

  Year ended December 31,
  2 0 1 8   2 0 1 7   2 0 1 6
                 
Mexico $ 20,421,529   $ 16,712,874   $ 16,077,884
USA   8,975,585     8,333,259     9,198,561
Brazil   5,932,297     3,214,117     1,828,279
Canada   267,606     370,803     350,673
Latin America   60,578     30,173     34,932
Other (Europe and Asia)   20,658     39,224     25,236
  $ 35,678,253   $ 28,700,450   $ 27,515,565