Brazilian integrated steelmaker Gerdau said on Wednesday net profit in Q3 declined 63.5 percent, year-on-year, to BRL 289 million ($72.5 million).
Net revenues in Q3 fell 22.6 percent, year-on-year, to BRL 9.93 billion ($2.49 billion) due to lower steel sales volumes. Steel sales volumes in Q3 reached 3.05 million mt, 17.1 percent down, year-on-year. Crude steel output in Q3 was 2.73 million mt, 31.1 percent down, year-on-year.
Gerdau attributed the decreased crude steel production to the company’s disinvestments at its US businesses, weaker rebar production in the US, and maintenance at its No. 1 Ouro Branco blast furnace in Brazil.
Gerdau saw its gross profit in Q3 diminish 47.1 percent, year-on-year, to BRL 985 million ($247.2 million). The company’s gross margin dropped to 9.9 percent in Q3, from 14.5 percent in Q3 2018.
Adjusted EBITDA in Q3 was BRL 1.45 billion ($364.32 million), 27.6 percent down, year-on-year. Adjusted EBITDA margin in Q3 slightly declined to 14.7 percent, from 15.7 percent in the same quarter of the year prior.
USD = BRL 3.98 (October 30, 2019)