Brazilian long steel producer Votorantim Siderurgia said net revenues in Q2 remained stable with zero growth, the company said this week while releasing its quarterly results.
According to Votorantim Siderurgia, net revenues in Q2 reached BRL 396 million ($124.7 million), the same as in Q2 2016.
The company attributed the stable revenues to increased prices and sales volumes in Argentina, which were offset by lower prices and sales volumes in Colombia.
“Results from operations in Argentina were positively affected by higher prices related to the country's inflation and increase in sales volume,” the company said in a statement.
Cost of products sold in Q2 increased 5 percent, year-on-year, to BRL 332 million ($104.7 million).
Adjusted EBITDA in Q2 dropped 27 percent, year-on-year, to BRL 49 million ($15.4 million), while EBITDA margin fell to 12 percent in Q2 this year from 17 percent in the same quarter of the year prior.
Votorantim Siderurgia said results from its operations in Brazil were classified as “available for sale” and have not been included in the company’s financial statements since December 2016. Votorantim Siderurgia and ArcelorMittal Brazil unveiled plans to merge their long steel operations in Brazil; however, the matter is still under analysis of Brazil’s anti-trust authority, Cade.
Votorantim Industrial, the holding that owns Votorantim Siderurgia as well as other businesses, including zinc, saw its net profit in Q2 rise 74 percent, year-on-year, to BRL 554 million ($174.4 million).