Brazilian integrated steelmaker Gerdau said it expects to increase margins following the company’s recent divestments in the US, two company executives told analysts in an earnings call this week.
Gerdau declined to provide specifics of which margins—profit, revenue or EBITDA—would see an increase for the company following the asset sales.
“Independently of any speculation that there might be regarding the US 232 Section we aren’t comfortable with the margins we have in the (US) operation,” said CEO Gustavo Werneck.
“We have, within the past last few months, taken actions to increase those margins, independently of the probe. Our decision to divest rebar in the next few months aimed to reduce the company’s leverage and increase our margins (overall),” he added.
Gerdau said the company has reached a final phase of its divestment program. However, it said the US and Brazil continue to be two of the company’s priority markets.
Gerdau’s CFO Harley Scardoelli said the company may sell “punctual” assets, following BRL 6.3 billion in asset sales so far.