Draxton is its main division, generating 72% of the conglomerate’s sales. Thanks to the recovery of this business, Gis managed to register an increase in its operating flow of 3% to 36 million dollars. It is the first quarter in a year that this item has a positive performance. “Which consolidates the change in trend in the company’s profitability,” says GIS in his report.
From April to June, the conglomerate’s sales rose 21% to $303 million. While its net income fell 36% to 8 million dollars.
In the period, Draxton’s sales rose 23%. Casting and machining volumes increased 3% and 12%, respectively. In addition, the Ebitda remained almost in line with that registered last year (31 million dollars).
This performance can be considered positive given the increase in the cost of energy in Europe, where the company has plants, and the weakness of the automotive sector, due to logistical problems and shortage of semiconductors.
“There is still a complex economic environment with increases in energy prices and disruptions in supply chains, but the strategies we have adopted will allow us to continue improving the profitability of our operations,” said Manuel Rivera, CEO of GIS.
In June, the company announced the sale of Vitromex, its ceramic flooring and tile business, to Mohawk Industries for $293 million. The operation is subject to the approval of the competition authorities, but if it materializes, these resources “will strengthen the balance sheet to continue growing organically and explore options that strengthen Draxton’s position as a leading company in the industry,” said Rivera.