CSA, a Brazilian steelmaker owned by ThyssenKrupp, reported a negative EBIT of EUR 19 million in the second quarter (Q2) of the 2015 fiscal year, reverting a positive EBIT of EUR 155 million a year ago, the company said.
Adjusted EBIT continued negative, but was reduced to EUR 20 million in Q2 from EUR 27 million, year-on-year. Sales reached EUR 453 million, 15.3 percent down, year-on-year, from EUR 535 million.
CSA’s slab production declined to 900,000 mt in Q2 mt from 987,000 mt, while slab sales volumes also were lower. According to the company, it went from 1 million mt in Q2 2014 to 967 in Q2 this year.
“Weaker orders reflect temporary production constraints (converter repair/downtime in fiscal Q1, poor raw material quality and planned maintenance in fiscal Q2) as well as mounting price pressure,” the company said.
In a call with investors, ThyssenKrupp’s chief financial officer Guido Kerkhoff said the company “has had some issues with the blast furnace.”
“They are over now, but that was indeed not positive on the production level overall. True, as sales in the Brazilian markets improved, but given the current environment of the Brazilian economy, we would like to see more of that,” he said.