Late Monday, Brazil's second largest steelmaker, Usinas Siderurgicas de Minas Gerais SA (Usiminas) reported a net loss of R101.7 million (US$49.8 million), compared to a profit of R111.6 million in Q2 2011. Q2'a net loss follows a R70.8 million loss in Q1. Usiminas has reported a financial loss in three of the past six consecutive quarters.
But despite Q2's loss, net sales improved by 6.6 percent in the period, but the cost of goods sold surged 18 percent. "In the export market there was an increase in reais, due to the dollar appreciation, and stable prices on the domestic market," Usiminas executives said following the earnings release.