Belo Horizonte, Brazil-based flat rolled steelmaker Usinas Siderurgicas de Minas Gerais SA (Usiminas) reported Wednesday that in Q4 2011, profits fell to R$77 million (US$43.7 million) compared to R$280 million a year ago. For the full 2011 year, Usiminas earned R$404 million, substantially below the R$1.58 billion in 2010.
Usiminas blamed raw material costs, economic softening and a lower output on the lower earnings. Q4 2011 was Usiminas' weakest of the last four quarters. Profits sank 50 percent compared to Q3 2011 and Q4 raw steel production fell 5 percent to 1.56 million mt compared to Q4 2010.
During Usiminas' Q4 conference call Wednesday, company executives said that Usiminas' R$14 billion (US$8 billion) investment program that began in 2007 is approaching completion. The project includes modernizing the steelmaker's coke batteries, acquisition of iron ore mines and installation of a new heavy plate mill. The heavy plate mill will specifically target Brazil's shipbuilding and infrastructure markets, and should be operational later this year.