The longs leader of the Americas, Sao Paulo, Brazil-based Gerdau S.A., announced Thursday that while year-over-year net income fell 29 percent to R$409 million (US$252 million) in Q1 2011, overall sales improved, especially in North America where "the trend up is the most significant."
North American steel production dominated Gerdau's steel output in Q1, accounting for 37 percent of Gerdau's total crude steel production and 40 percent of long steel output. Shipments in North America also experienced a more significant gain than in Gerdau's domestic market, and in other Latin American nations. Gerdau shipments in Brazil rose 11 percent year-on-year while falling 6 percent from Q4 2010. Q1 2011 shipments from Gerdau's North American division however swelled 22 percent over Q1 2010, and increased 14 percent from the previous quarter. In the North American sector, "the recovery in shipments was fueled by stronger demand observed in the region, especially from clients in the manufacturing and energy industries," said Gerdau in its quarterly financial release.