Gerdau is expected to increase its net profit

Gerdau is expected to increase its net profit

Recent market news reports that, Brazilian mill Gerdau is expected to achieve 70% increase for its fourth quarter net profit, depending on the economic recovery and development of its outside divisions. Based on the forecast of the analysts, Gerdau is to report net profit of Reals 330 million ($115.8 million) in the fourth quarter of 2003, against Reals 196 million ($68.8 million) recorded in the same period of previous year. Also this amount is more than Reals 245 million ($86 million) recorded in the third quarter. Moreover, the company is expected to achieve a net revenue of Reals 3.7 billion (1.3 billion) in the aforementioned period against Reals 2.6 billion ($911 million) recorded in the corresponding period of previous year. Apart from these improved results, Gerdau has plans to expand its mills. As reported by SteelOrbis back in early December, Gerdau Açominas had awarded SMS to install a new wire rod mill in Minas Gerais with an annual capacity of 550'000 tons. Very recently, the new rolling mill has produced its first coils of wire rod. The new mill is currently undergoing trial operations however the products to be exported are scheduled to be ready during the first quarter of 2004.