CST announces Reals 590 million net profit

CST announces Reals 590 million net profit

Brazilian Companhia Siderurgica de Tubarao (CST) announced its net profit as Reals 590 million (approx. $193 million) in the first six months of 2003 against Reals 172 million losses in the same period last year. Through this result, CST's average slab price has shown an upward trend. The company posted its average slab price as $238 per ton for the second quarter of 2003 and $229 per ton for first quarter against $161 per ton in the first half of 2002. CST estimates an average of $230-240 per ton in the second half of 2003. CST's net sales reached to Reals 1.9 billion with an increase of 87% while gross profit and EBITDA reached to Reals 679 million with a 625% increase and to Reals 749 million with a 275% increase respectively. Currency gains improved the company's financial operations to Reals 57 million in the first half of 2003 when compared Reals 265 million loss in the same period last year. In the first six months of 2003, the slab production remained at 2.4 million tons while hot rolled production increased to 462'000 tons. Slab sales decreased to 964'000 tons, by 26% due to converting output to hot rolled production. The Asian region accounted for 46% of CST's exports while North America with 43% and Europe and Middle East with 11%. The exports of hot rolled coils reached to 44'000 tons in the first six months of 2003 while Vega do Sul accounted for 5% of CST's hot rolled coils output.