Brazilian steelmaker Gerdau reverted the BRL 1.95 billion ($606.4 million) net loss it reported in Q3 2015 and posted a BRL 95 million ($29.5 million) net profit in Q3 this year, the company announced on Wednesday in a release of its quarterly results.
Net revenues in Q3 this year was BRL 8.6 billion, 27.1 percent down, year-on-year. Gerdau attributed the diminished revenues to lower sales volumes and weaker prices per mt.
Despite the decreased net revenues in Q3, Gerdau managed to diminish its cost of sales by 28.6 percent in Q3, year-on-year, to BRL 7.6 billion.
Gerdau’s crude steel output in Q3 declined 7.3 percent, year-on-year, to 3.8 million mt, while steel sales volumes fell 21.4 percent, year-on-year, to 3.6 million mt. The decreased crude steel output was mainly due to a “readjustment” in inventories at its North American division as well as by the “alienation” of its units in Spain.
The company’s adjusted EBITDA in Q3 fell 7 percent, year-on-year, to BRL 1.2 billion, due to a weaker performance at Gerdau’s North American operations.
Gerdau’s gross margin in Q3 was 12 percent, up from a 10.2 percent margin reported in Q3 2015. The EBITDA margin in Q3 rose to 13.8 percent, from 10.8 percent in the same quarter of the year prior.