Brazilian steel and iron ore producer reported a net loss of BRL 823 million ($165 million) for the first quarter of 2023, against a net profit of BRL 197 million in the previous quarter.
Under the same comparative basis, net sales revenues increased by 2 percent to BRL 11.32 billion, the gross profit declined by 1 percent to BRL 3.25 billion and EBITDA increased by 3 percent to BRL 3.20 billion.
In a press release, the company ascribed the negative result to non-recurrent impacts, such as iron ore hedging and exchange rate accounting hedge, adding that such factors had no cash impact. In the case of the iron ore hedging, the company mentioned that much of the loss will be recovered over the next quarter.
In volume, domestic sales of steel products declined by 13 percent to 644,000 mt, while steel exports increased by 45 percent to 389,000 mt.
Domestic iron ore sales declined by 36 percent to 666,000 mt, while iron ore exports declined by 9 percent to 7.95 million mt.
USD = BRL 4.99 (May 4)