Brazilian steelmaker Companhia Siderurgica Nacional (CSN) saw its net profit in Q1 surge to BRL 1.5 billion ($409.3 million) from BRL 118 million ($32.2 million) in the same quarter of the year prior, the company said, while releasing its quarterly results.
CSN’s income was much higher when compared to peers Gerdau and flat steelmaker Usiminas, which saw their profits reach BRL 451 million ($123 million) and BRL 157 million ($42.8 million), respectively, in Q1. The combined results of the three steelmakers indicate an improved scenario for the local steel sector.
Much of CSN’s increased net profit was attributed to the gains on the company’s Usiminas shares, which were measured at fair value in the quarter thanks to a new accounting standard.
CSN said net revenues in Q1 rose 15 percent, year-on-year, to BRL 5.06 billion ($1.3 billion) due to steel price hikes it applied to its consumers.
Steel sales volumes in the first quarter of the year grew 7 percent, year-on-year, to 1.2 million mt.
The steelmaker’s gross profit in Q1 was BRL 1.3 billion ($376.6 million), 5 percent up, year-on-year, while adjusted EBITDA totaled BRL 1.2 billion ($338.4 million), 7 percent down, year-on-year.
USD = BRL 3.66 (May 15)