- | The use of direct cost methodology to calculate the inventories, while under IFRS is at full cost, including absorption of production overheads and depreciation. |
- | The use of costs based on previously internally defined cost estimates, while, under IFRS, costs are calculated at historical cost (with the FIFO method). |
- | Other timing and non-significant differences. |
Year ended December 31, 2017 | |||||||||||
Steel | Mining | Inter- segment eliminations | Total | ||||||||
IFRS | |||||||||||
Net sales | 9,700,260 | 271,477 | (271,441 | ) | 9,700,296 | ||||||
Cost of sales | (7,465,751 | ) | (212,860 | ) | 275,586 | (7,403,025 | ) | ||||
Gross profit | 2,234,509 | 58,617 | 4,145 | 2,297,271 | |||||||
Selling, general and administrative expenses | (811,487 | ) | (12,760 | ) | — | (824,247 | ) | ||||
Other operating income, net | (17,011 | ) | 771 | — | (16,240 | ) | |||||
Operating income - IFRS | 1,406,011 | 46,628 | 4,145 | 1,456,784 | |||||||
Management view | |||||||||||
Net sales | 9,700,260 | 287,152 | (287,116 | ) | 9,700,296 | ||||||
Operating income | 1,065,605 | 66,694 | (1,291 | ) | 1,131,008 | ||||||
Reconciliation items: | |||||||||||
Differences in Cost of sales | 325,776 | ||||||||||
Operating income - IFRS | 1,456,784 | ||||||||||
Financial income (expense), net | (165,090 | ) | |||||||||
Equity in (losses) earnings of non-consolidated companies | 68,115 | ||||||||||
Income before income tax expense - IFRS | 1,359,809 | ||||||||||
Depreciation and amortization - IFRS | (424,529 | ) | (49,770 | ) | — | (474,299 | ) |
Year ended December 31, 2016 | |||||||||||
Steel | Mining | Inter- segment eliminations | Total | ||||||||
IFRS | |||||||||||
Net sales | 7,221,751 | 204,894 | (202,670 | ) | 7,223,975 | ||||||
Cost of sales | (5,391,038 | ) | (192,038 | ) | 198,686 | (5,384,390 | ) | ||||
Gross profit | 1,830,713 | 12,856 | (3,984 | ) | 1,839,585 | ||||||
Selling, general and administrative expenses | (677,007 | ) | (10,935 | ) | — | (687,942 | ) | ||||
Other operating income, net | (9,543 | ) | (382 | ) | — | (9,925 | ) | ||||
Operating income - IFRS | 1,144,163 | 1,539 | (3,984 | ) | 1,141,718 | ||||||
Management view | |||||||||||
Net sales | 7,221,751 | 208,230 | (206,006 | ) | 7,223,975 | ||||||
Operating income | 936,164 | 3,871 | 269 | 940,303 | |||||||
Reconciliation items: | |||||||||||
Differences in Cost of sales | 201,415 | ||||||||||
Operating income - IFRS | 1,141,718 | ||||||||||
Financial income (expense), net | (37,885 | ) | |||||||||
Equity in (losses) earnings of non-consolidated companies | 14,624 | ||||||||||
Income before income tax expense - IFRS | 1,118,457 | ||||||||||
Depreciation and amortization - IFRS | (361,685 | ) | (45,205 | ) | — | (406,890 | ) |
Year ended December 31, 2015 | |||||||||||
Steel | Mining | Inter- segment eliminations | Total | ||||||||
IFRS | |||||||||||
Net sales | 7,875,161 | 203,105 | (200,817 | ) | 7,877,449 | ||||||
Cost of sales | (6,456,584 | ) | (214,651 | ) | 193,963 | (6,477,272 | ) | ||||
Gross profit | 1,418,577 | (11,546 | ) | (6,854 | ) | 1,400,177 | |||||
Selling, general and administrative expenses | (757,078 | ) | (13,214 | ) | — | (770,292 | ) | ||||
Other operating income, net | 9,151 | 303 | — | 9,454 | |||||||
Operating income - IFRS | 670,650 | (24,457 | ) | (6,854 | ) | 639,339 | |||||
Management view | |||||||||||
Net sales | 7,875,161 | 216,095 | (213,807 | ) | 7,877,449 | ||||||
Operating income | 1,012,282 | (3,490 | ) | (640 | ) | 1,008,152 | |||||
Reconciliation items: | |||||||||||
Differences in Cost of sales | (368,813 | ) | |||||||||
Operating income - IFRS | 639,339 | ||||||||||
Financial income (expense), net | (99,430 | ) | |||||||||
Equity in (losses) earnings of non-consolidated companies | (272,810 | ) | |||||||||
Income before income tax expense - IFRS | 267,099 | ||||||||||
Depreciation and amortization - IFRS | (384,380 | ) | (49,408 | ) | — | (433,788 | ) |
Year ended December 31, 2017 | |||||||||||
Mexico | Southern region | Other markets (2) | Total | ||||||||
Net sales | 5,629,267 | 2,316,444 | 1,754,585 | 9,700,296 | |||||||
Non-current assets (1) | 4,042,914 | 643,411 | 1,756,007 | 6,442,332 |
Year ended December 31, 2016 | |||||||||||
Mexico | Southern region | Other markets | Total | ||||||||
Net sales | 4,491,761 | 1,867,622 | 864,592 | 7,223,975 | |||||||
Non-current assets (1) | 4,108,539 | 634,048 | 235,947 | 4,978,534 |
Year ended December 31, 2015 | |||||||||||
Mexico | Southern region | Other markets | Total | ||||||||
Net sales | 4,395,273 | 2,572,723 | 909,453 | 7,877,449 | |||||||
Non-current assets (1) | 4,166,148 | 682,705 | 246,919 | 5,095,772 |
Year ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Semi-finished (1) | 123,752 | 19,878 | 88,264 | |||||
Slabs | 715,513 | — | — | |||||
Hot rolled (2) | 3,366,697 | 2,763,403 | 3,049,433 | |||||
Cold rolled | 1,321,663 | 1,110,671 | 1,176,019 | |||||
Coated (3) | 3,391,328 | 2,900,009 | 3,004,700 | |||||
Roll-formed and tubular (4) | 472,253 | 413,991 | 509,034 | |||||
Other products (5) | 309,090 | 16,023 | 49,999 | |||||
TOTAL SALES | 9,700,296 | 7,223,975 | 7,877,449 |
(1) | Semi-finished includes billets and round bars. |
(2) | Hot rolled includes hot rolled flat products, merchant bars, reinforcing bars, stirrups and rods. |
(3) | Coated includes tin plate and galvanized products. |
(4) | Roll-formed and tubular includes tubes, beams, insulated panels, roofing and cladding, roof tiles, steel decks and pre-engineered metal building systems. |
(5) | Other products include mainly sales of energy and pig iron. |