Brazilian steelmaker Usiminas posted a BRL 117 million net loss in the fourth quarter of 2014, as a result of a low steel demand in Brazil and lower iron ore prices, the company said on Wednesday after delaying its results for a couple days.
“[The] industry has faced a difficult scenario with low investments, weak consumption, strong imports and high inventories,” it said in a statement.
Steel and iron ore sales volumes fell by 11 and 6 percent, respectively, to 1.2 million mt and 1.16 million, Usiminas said.
All Usiminas sales, both domestically and globally, decreased at significant rates. Heavy plates, hot rolled (HRC), cold rolled (CRC), galvanized, processed products and slabs sales fell in Q4, year-on-year.
“Net revenue in the Steel Unit was BRL 2.5 billion in the Q4 8.2 percent lower than that of the 3Q14, mainly due to the sales volume decrease, partially offset by the higher average price of exports in 13.0 percent as a result of the better product mix, with lower sales of slabs, and the foreign exchange devaluation of the Real against the Dollar, on average, by 11.8 percent in the period,” the company commented.
“The average sales price in the domestic market remained stable comparing both quarters.”
According to Usiminas, “the retraction in the domestic market and lower exports, mainly affected by the crisis in Argentina, one of the main purchasers of Brazilian manufactured goods, contributed to the fall in the industrial production in 2014”.
According to Usiminas, its net revenue in Q4 2014 decreased 11 percent to BRL 2.5 billion from BRL 2.9 billion a year ago.
Usiminas adjusted EBITDA in Q4 was BRL 301.8 million, 15 percent lower than the BRL 514.1 million registered a year ago.
According to Usiminas, the result in the adjusted EBTIDA is “in accordance with the decrease in the Brazilian steel demand and with the drop of iron ore prices in the international market.”