Brazilian steelmaker Gerdau reported a BRL 267 million net profit in the first quarter of the year, 39.3 percent down year-on-year, the company said Wednesday. The decrease in net profit in Q1 was attributed to a “lower operational result and to a higher negative financial result” in the period.
Gerdau’s net revenue declined 1 percent to BRL 10.4 billion from BRL 10.5 billion a year ago, with selling, general and administrative expenses reaching BRL 660 million, down 6.6 percent from BRL 707 in the same period.
The company’s EBITDA fell 8.9 percent year-on-year, to BRL 1 billion from BRL 1.1 billion. Gerdau’s EBITDA, gross margins decreased to 10.4 and 10.6 percent, respectively.
Gerdau said crude steel production in Q1 was stable at 4.3 million mt, while steel sales declined 5.6 percent to 4,1 million mt, year-on-year.
Iron ore sales in Q1 reached 1.5 million mt from 2 million in the same period of 2014.