XML 40 R27.htm IDEA: XBRL DOCUMENT

Financial information by segments

12 Months Ended

Dec. 31, 2020

Disclosure of operating segments [abstract]

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 six Republic plants five of which are located in the United States (Ohio, Indiana and New York) and one in Canada (Ontario). The plant in Canada stopped operating in 2018. 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, 2020
	Mexico		USA		Brazil		Eliminations between segments		Total

Net sales	$	19,660,889	$	5,549,781	$	10,659,259	$		$	35,869,314
Cost of sales		15,459,258		5,677,638		8,075,253				29,211,724

Gross profit (loss)		4,201,631		(127,857)		2,583,806				6,657,590
Administrative expenses		(1,117,817)		(240,726)		(660,785)				(2,019,328)
Other income (expenses), net		(52,605)		(505,946)		11,854				(546,749)
Interest income		107,604		222		0				107,826
Interest expense		(5,108)		(16,104)		(66,007)		33,473		(53,746)
Exchange rate gain (loss), net		483,822		(1,510)		1,096,416		(1,215,564)		363,164

Income (loss) before income taxes		2,755,145		123,001		748,744		1,249,037		4,875,927
Income taxes		1,747,568		118,926		211,350				2,077,844

Net income (loss) for the year	$	1,007,577	$	4,075	$	537,394	$	1,249,037	$	2,798,083


Depreciation and amortization	$	693,362	$	332,186	$	426,723			$	1,452,271

Total assets		33,386,043		9,237,831		5,807,121	$	(2,927,348)		45,503,647

Total liabilities		6,944,579		4,797,682		3,670,075		(2,927,348)		12,484,988

Acquisitions of property, plant and equipment		278,700		41,054		631,451				951,205

	Year ended December 31, 2019
	Mexico		USA		Brazil		Eliminations between segments		Total

Net sales	$	18,530,672	$	7,120,360	$	8,520,169	$		$	34,171,201
Cost of sales		14,934,575		7,752,776		7,379,790				30,067,141

Gross profit (loss)		3,596,097		(632,416)		1,140,379				4,104,060
Administrative expenses		848,495		267,756		521,174				1,637,425
Other income (expenses), net		175,412		(71,324)		32,494				136,582
Interest income		145,729		266		0				145,995
Interest expense		3,438		(84,621)		(110,919)		137,053		(55,049)
Exchange rate gain (loss), net		628,044		(2,745)		177,314		(18,030)		784,583

Income (loss) before income taxes		2,093,313		(910,458)		298,478		155,083		1,636,416
Income taxes		3,505,015		(236,598)		7,857				3,276,274

Net income (loss) for the year	$	(1,411,702)	$	(673,860)	$	290,621	$	155,083	$	(1,639,858)

Depreciation and amortization	$	577,048	$	260,760	$	270,821			$	1,108,629

Total assets		32,935,743		8,419,771		6,002,701	$	(3,343,456)		44,014,759

Total liabilities		7,253,713		4,219,817		3,274,908		(3,343,456)		11,404,982

Acquisitions of property, plant and equipment		785,818		278,467		207,135				1,271,420

	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

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

Information on products:

	Year ended December 31,
	2 0 2 0		2 0 1 9		2 0 1 8
Light structural	$	1,529,216	$	1,396,632	$	1,654,720
Structural		3,677,441		3,304,178		2,441,079
Bars		2,061,053		2,220,264		1,575,291
Rebar		14,081,399		12,370,490		12,363,530
Flat rebar		1,851,960		1,833,576		2,271,347
Hot rolled bars		7,548,939		8,226,613		9,549,286
Cold drawn bars		2,139,938		3,102,544		3,779,385
Others		2,989,368		1,716,904		2,043,615
	$	35,879,314	$	34,171,201	$	35,678,253

Information about geographical areas:

	Year ended December 31,
	2 0 2 0		2 0 1 9		2 0 1 8
Mexico	$	18,122,828	$	17,873,633	$	20,421,529
USA		6,555,642		7,544,078		8,975,585
Brazil		10,608,151		8,500,592		5,932,297
Canada		311,761		175,686		267,606
Latin America		253,096		60,672		60,578
Other (Europe and Asia)		17,836		16,540		20,658
	$	35,869,314	$	34,171,201	$	35,678,253

Revenues are recognized at a specific time to direct customers, when control has been transferred and there is no performance obligation included that could affect the acceptance of the product by the customer.