Brazilian steelmaker ArcelorMittal Brasil, a subsidiary of global steelmaker ArcelorMittal, saw operating profit decline in Q1 to $89 million, from $291 million reported in the same quarter of the year prior, the company said while releasing its quarterly results.
According to the company, EBITDA in Brazil dropped 61.5 percent in Q1, year-on-year, and 19.8 percent, quarter-on-quarter.
As for the decline in the quarter-on-quarter analysis, the steelmaker said it was due to “lower average steel selling prices—primarily long steel products, which declined 9.2 percent—lower steel shipment volumes as well as tubular operations in Venezuela impacted by currency devaluation.”
Sales diminished 40.7 percent in Q1, year-on-year, to $1.2 billion, and 40 percent, quarter-on-quarter.
Crude steel output in Brazil was 2.6 million mt, 7.2 percent down, year-on-year, while steel shipments totaled 2.4 million mt in the same quarter, 8.7 percent lower when compared to the same quarter of the previous year.
ArcelorMittal said it expects apparent steel consumption in Brazil to decline further by between 10 to 12 percent in 2016 “as the economy remains mired in recession.”