Brazil's Companhia Siderurgica Nacional (CSN) reported Wednesday a sharp increase in third quarter net profit, aided by the sale of 40 percent of its stake in iron ore unit Namisa and a stronger currency in the quarter.
CSN's net income in Q3 2009 totaled 1.15 billion reais (US$659 million), compared to a profit of 39.7 million reais in the same quarter of 2008.
During the quarter, the steelmaker (Brazil's third-largest) registered a 835 million reai gain from the sale of 40 percent of its Namisa iron ore mining unit to a group of South Korean and Japanese companies.
The company also cited decreased tax costs, other cost-cutting measures undertaken during the quarter, and currency factors as reasons for its strongly improved Q3 2009 performance. The firm also said it expects steel demand to improve it will start producing long steel at the beginning of 2011, at a plant built alongside its Volta Redonda steel mill. The plant was originally scheduled to start up in 2009.