The Brazilian steel and iron ore producer, Usiminas, posted a net loss of BRL 100 million ($17.7 million) for Q2 2024, against a net profit of $287 million for Q2 2023.
On a comparative basis, net sales revenues declined by 8 percent to BRL 6.350 billion, the production costs declined by 4 percent to BRL 6.021 billion, and the gross profit declined by 44 percent to BRL 328 million.
With operational expenses of BRL 355 million, the company incurred an operational loss of BRL 27.6 million, against an operational profit of BRL 130.4 million in Q2 2024.
In volume, the sales of steel products increased by 7 percent to 1.042 million mt while iron ore sales declined by 16 percent to 2.015 million mt.
The company ascribes the net loss to a negative financial result, BRL 196 million, reflecting losses chiefly associated with the devaluation of the BRL, against a financial profit of BRL 205 million in Q2 2023.
According to the company, there are expectations for an improved result of steel business in the fourth quarter, coupled with a stable result of its iron ore business.
USD = BRL 5.66 (26 July 2024)