Gerdau posted positive results for the first half of 2003

Gerdau posted positive results for the first half of 2003

Brazilian longs producer Gerdau Group reported a consolidated net profit of Real 552 million (around $186 million) for the first half of 2003. Despite 9% decrease in domestic sales, the reason behind 86% increase seen in profit over same period last year is that exports mainly to South America, Europe and Africa from Brazil showed a significant increase of 78%. Total sales in the first six months grew up to 5.9 million mts and the 43% increase in total sales in the first half of the year is attributed to merger with Co-Steel increasing operations in North America and improvement of production capacity at Brazilian mill Acominas which helped Gerdau's operations in Brazil to sell 3.1 million mts of total sales effected. It is also reported that all Canadian mills at Cambridge and Whitby in Ontario and Selkirk in Manitoba conducted by Gerdau's subsidiary Gerdau Ameristeel will be put into periodic maintenance process this quarter each to last for almost two weeks. Currently mills at Cambridge and Selkirk are under maintenance. However maintenance at Whitby is scheduled to take place towards the end of the quarter.