The third-largest Brazilian steelmaker, Companhia Siderurgica Nacional, or CSN, achieved a Q2 net income of 335 million Brazilian reals (US$182 million), down 68 percent from the year-ago period, though down only nine percent from Q1, the firm reported Thursday.
CSN attributed the 68 percent fall in Q2 net income to decreased output and sales resulting from the international financial crisis.
The firm reported second quarter net sales of BRL2.49 billion, which is down 30 percent from BRL3.55 billion in Q2 of last year and up slightly from BRL2.44 in the first quarter of 2009. Net sales dropped as a result of decreased orders from carmarkers and builders in March which led the company to halt its Blast Furnace 2 that same month for maintenance. Operations resumed in June.
CSN did report some improvements over last year -- steel product sales volume in Q2 totaled 947,000 mt, up an impressive 47 percent from the first qurter. Furthermore, its iron or sales volume totaled 9.4 million mt in the first half of 2009, up 22 percent on the first six months of 2008.
CSN said that although the steel sector scenario remains unpredictable, a gradual sales recovery is expected in the coming months as a result of government measures. Second-half export prospects have also improved, said the firm, thanks to reduced inventories and the gradual recovery international prices.
According to the IBS (Brazilian Steel Institute) crude steel production in Brazil totaled 5.6 million mt in the second quarter, or 12 percent more than the 5.0 million requarded in the previous quarter, but still down 37 percent from last year. With the reactivation of blast furnaces that were switched off in the first half, steel production figures are expected to register further increases in the coming months.