Brazil’s steelmaker Companhia Siderurgica Nacional (CSN) reverted a BRL 19 million net profit and posted a BRL 614.5 million net loss in Q2 this year, the company said on Thursday while announcing its quarterly results.
Reflecting the challenging scenario the nation’s steel industry has been facing, CSN posted weaker year-on-year figures in Q2 in most financial indicators. The company’s net revenue in the period declined 9.1 percent, year-on-year, to BRL 3.6 billion. Following the same downtrend, CSN’s gross profit in Q2 reached BRL 840 million, a bit more than half the BRL 1.3 billion gross profit registered a year ago.
Cost of goods sold in Q2 rose 3.6 percent, year-on-year, to BRL 2.8 billion.
As most Brazilian mills are turning attention to the export market due to the devaluation of the BRL, CSN increased its revenue from the export market from BRL 1.5 billion last year to BRL 1.7 billion in Q2. The domestic market’s revenue fell by 21.8 percent, year-on-year, to BRL 1.9 billion this quarter.
CSN said adjusted EBITDA in Q2 reached BRL 801 million, 39 percent lower when compared to Q2 last year, while EBITDA margin declined to 20 percent from 30 percent the year prior.
The company’s net debt in Q2 rose to BRL 20.7 billion from BRL 16.9 billion a year ago.
1 US$ = BRL 3.51 (August 13)