Gerdau sees profit decline in Q2

Wednesday, 07 August 2019 23:56:54 (GMT+3)   |   Sao Paulo

Brazilian integrated steelmaker Gerdau saw its net profit in Q2 decline 46.5 percent, year-on-year, to BRL 373 million ($93.8 million), the company said on Wednesday while releasing its quarterly results. Net revenues in Q2 dropped 15.6 percent, year-on-year, to BRL 10.15 billion ($2.55 billion).

Steel sales volumes in Q2 reached 2.9 million mt, 22.5 percent down, year-on-year. Crude steel production in Q2 was 3.4 million mt, 14.1 percent down, year-on-year.

Gerdau attributed the decreased net revenues, steel sales volumes and crude steel output to disinvestments made in Chile, India and the US during 2018.

Gerdau said gross margin in Q2 was 12.5 percent, down from 13.7 percent in Q2 2018. Adjusted EBITDA in Q2 fell 10.5 percent, year-on-year, to BRL 1.57 billion ($395.4 million). Adjusted EBITDA margin in Q2 rose to 15.5 percent, from 14.6 percent in Q2 2018.

USD = BRL 3.97 (August 7)

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