ArcelorMittal Brasil reports net profit for 2013

ArcelorMittal Brasil, Brazilian subsidiary of global steelmaker ArcelorMittal, has announced its financial results for 2013, indicating that the surplus of global steel production capacity is over 570 million mt, which still presents risks in the flow of international trade in steel. The main impact of the overcapacity is reduced steel prices in the international market for Brazilian exports. In 2013, the country's total export volume declined 17.5 percent year on year and raw materials costs remained relatively high when compared to the depressed steel prices.
 
In 2013, ArcelorMittal Brasil reported a net profit of R$380 million ($167.2 million), while the company's sales revenues amounted to R$16.6 billion ($7.33 billion), increasing by six percent compared to 2012. In the given period, ArcelorMittal Brasil's EBITDA reached R$3.4 billion ($1.5 billion), 41 percent higher than in 2012, mainly driven by recovery in the flat steel market, and the growth rate maintained in major consumer markets of long steel. The EBITDA margin stood at 20 percent, up five percentage points compared to the previous year.
 
The company's sales volume in 2013 reached 8 million mt, mostly for the domestic market, remaining stable compared to the previous year. In the flat steel segment of ArcelorMittal Brasil, annual crude steel production increased from 4.39 million mt to 4.43 million mt. The sales volume of flat steel products decreased by one percent to 4.21 million mt year on year.