The Brazilian Gerdau group posted a consolidated net profit of BRL 866.98 million ($152.4 million) for Q2 2024, against BRL 2.142 billion achieved in Q2 2023. Net sales declined by 9.0 percent to BRL 16.615 billion, the gross profit declined by 33.3 percent to BRL 2.186 billion, and the EBITDA declined by 34.2 percent to BRL 2.392 billion.
In volume, the production of crude steel declined by 5.3 percent to 2.916 million mt, while sales of steel products increased by 7.5 percent to 2.712 million mt.
In terms of business divisions of the group, considering Q2 2024, Brazil was responsible for 36.2 percent of the group’s net sales and 19.8 percent of its EBITDA, while North America had respectively 38.8 percent and 51.8 percent, South America had 8.3 percent and 8.4 percent, and the specialty steels business division had 16.7 percent and 20.0 percent.
According to the company, the steel industry continues to face oversupply in the global market causing an increase in the flow of exports and imports, as well as pressuring international prices while global economic growth remains stable.
The company added that in Brazil, the high penetration of imported products continues to affect domestic shipment volumes, as the quota system implemented by the government did not have a significant impact on the domestic steel market in Q2 2024.
Gerdau mentioned data from the Brazilian steel institute (IABr), stating that the country’s steel imports increased 23.9 percent in the first half of 2024 compared to the same period in 2023, while the apparent consumption of steel was limited to a 6.0 percent increase in the same period.
USD = BRL 5.69 (August 01)
