Sao Paulo, Brazil-based Gerdau S.A. announced Thursday that net income amounted to R$409 million (US$252 million) in Q1 2011, as shipments reached 4.7 million metric tons-up 16 percent year-on-year and the highest level since 2008. Q1 2011's net income was still 29 percent from Q1 2010 and edged 3 percent below net income in Q4 2010.
Still, Gerdau sees a trend toward improvement in terms of demand in Q2, and is preparing for the launch of its flat-rolled steelmaking operations. The movement toward incorporating the production of flat steel products-first hot rolled strip and then heavy plate-will help Gerdau diversify its activities and grow its financial margin said Gerdau executives during Thursday's conference call.
When asked about the future of import market share in the Brazilian market, Gerdau stressed the importance of keeping import activity low-as it is currently-and CEO Andre Gerdau Johannpeter expects that the low import levels will continue because of the difference between international and domestic prices in Brazil, but did note that the company will keep a close eye on imports nonetheless.