Brazilian integrated steelmaker Gerdau saw its net profit surge to BRL 791 million ($212.1 million) in Q3 this year, from BRL 145 million ($38.9 million) in the same quarter of the year prior, the company said on Wednesday while releasing its quarterly results.
Net revenues in Q3 rose 35.5 percent, year-on-year, to BRL 12.8 billion ($3.4 billion), due to increased net revenues per ton at all its businesses, and thanks to higher international steel prices.
Gross margin in Q3 improved to 14.5 percent, from 10.3 percent in Q3 2017. The company’s adjusted EBITDA in Q3 was BRL 2.01 billion ($538.9 million), 72.6 percent up, year-on-year. Adjusted EBITDA margin rose to 15.7 percent in Q3, from 12.3 percent in Q3 2017.
The company's crude steel output in Q3 dropped 2.3 percent, year-on-year, to 3.9 million mt, while steel sales volumes in the same period declined 4.6 percent, year-on-year, to 3.6 million mt.
Gerdau attributed the decreased crude steel production and sales volumes in Q3 to a weaker output and sales at its Brazilian business, as a result of planned maintenances at blast furnace No. 2 of its Ouro Branco mill in Minas Gerais state, and also due to the exclusion of its Chilean business from July 2018.
USD = BRL 3.73 (November 7)