Brazil's second largest steelmaker Usinas Siderurgicas de Minas Gerais SA (Usiminas) has posted a net loss for the first quarter of 2009, its first since 2002.
Accordingly, the company registered a net loss of Reais 111.9 million ($53 million) in the first quarter of 2009, compared with a net income of Reais 712.9 million a year earlier, while its net sales fell by 25 percent to Reais 2.67 billion.
The company said in its statement, "These first quarter results confirm our initial expectations that 2009 will certainly be a difficult year and points toward a slower recovery of the steel sector than originally predicted."
"Global steel consumption may decline by 15 percent this year while mills produce at only two-thirds capacity," Usiminas added.
Usiminas also said that its results were hurt by non-recurring costs of about Reais 500 million related to idle capacity, selling highly-priced imported steel, which it ordered in the third quarter of 2008, and from its stake in Ternium SA, which was unprofitable in the period.
Meanwhile, Brazil's third largest steelmaker Cia Siderurgica Nacional SA (CSN) announced that its profit decreased by 52 percent in the first quarter of 2009, since it cut output to match lower demand amid the global economic slump.
Accordingly, the company's net income dropped to Reais 369 million ($174 million) from Reais 767 million in the year-ago period, while its net sales fell by 19 percent to Reais 2.44 billion, compared to the corresponding period of the previous year.