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Financial Information by Segments

12 Months Ended

Dec. 31, 2021

Disclosure of fair value measurement of assets [line items]

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 in Mexico, the United States of America and Brazil. 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 stopped operating in 2018. The Brazilian segment includes the plants in Cariacica and Itaúna. 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, 2021
		Mexico				USA				Brazil				Eliminations between segments				Total
Net sales		$	29,678,133			$	8,216,595			$	17,725,628			$				$	55,620,356
Cost of sales			21,337,462				7,159,354				11,471,370								39,968,186
Gross profit (loss)			8,340,671				1,057,241				6,254,258								15,652,170
Administrative expenses			(907,798	)			(256,875	)			(877,969	)							(2,042,642	)
Other income (expenses), net			(77,530	)			454,303				1,793				(455,972	)			(77,406	)
Interest income			65,631				317												65,948
Interest expense			(28,904	)			(61,494	)			(96,486	)			99,439				(87,445	)
Exchange rate gain (loss), net			325,389				(378	)			(120,300	)			120,300				325,011
Income (loss) before income taxes			7,717,459				1,193,114				5,161,296				(236,233	)			13,835,636
Income taxes			2,472,751				477,380				1,439,638								4,389,769
Net income (loss) for the year		$	5,244,708			$	715,734			$	3,721,658			$	(236,233	)		$	9,445,867

Depreciation and Amortization		$	667,167			$	270,119			$	237,822							$	1,175,108

Total assets			47,917,643				10,836,083				8,815,051			$	(10,226,205	)			57,342,572

Total, liabilities			7,828,384				5,544,135				12,396,190				(10,226,205	)			15,542,504

Acquisitions of property, plant and equipment			367,496				288,487				410,439								1,066,422

		Year ended December 31, 2020
		Mexico				USA				Brazil				Eliminations between segments				Total
Net sales		$	19,660,889			$	5,549,366			$	10,659,059			$				$	35,869,314
Cost of sales			15,459,258				5,677,213				8,075,253								29,211,724
Gross profit (loss)			4,201,631				(127,847	)			2,583,806								6,657,590
Administrative expenses			(1,117,817	)			(240,726	)			(660,785	)							(2,019,328	)
Other income (expenses), net			52,656				505,946				(11,854	)							546,748
Interest income			107,605				222				0								107,827
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

Information on products:

		Year ended December 31,
		2021				2020				2019
Light structural		$	2,600,484			$	1,529,216			$	1,396,632
Structural			5,342,228				3,677,441				3,304,178
Bars			4,456,151				2,061,053				2,220,264
Rebar			19,625,066				14,081,399				12,370,490
Flat rebar			3,376,554				1,851,960				1,833,576
Hot rolled bars			11,413,275				7,548,939				8,226,613
Cold drawn bars			3,213,061				2,139,938				3,102,544
Others			5,593,537				2,979,368				1,716,904
		$	55,620,356			$	35,869,314			$	34,171,201

Information about geographical areas:

		Year ended December 31,
		2021				2020				2019
Mexico		$	28,060,405			$	18,122,828			$	17,873,633
USA			9,050,696				6,555,642				7,544,078
Brazil			17,548,823				10,608,151				8,500,592
Canada			441,856				311,761				175,686
Latin America			513,524				253,096				60,672
Other (Europe and Asia)			5,052				17,836				16,540
		$	55,620,356			$	35,869,314			$	34,171,201

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.