Brazilian flats steelmaker Usiminas went from a net profit of BRL 76 million ($13.6 million) in Q1 2019 to post a net loss of BRL 424 million ($76.1 million) in Q1 2020.
Usiminas attributed the loss to a currency impairment of BRL 775 million ($139.2 million) due the weakening of the Brazilian Real (BRL) over the US dollar (USD).
Despite the Covid-19 pandemic, which forced the company to halt steel production and a blast furnace at its Ipatinga mill in early April, Usiminas said net revenues in Q1 rose 8 percent, year-on-year, to BRL 3.80 billion ($685.5 million).
Steel sales volumes in Q1 grew 4 percent, year-on-year, to 1.04 million mt. Iron ore sales volumes in Q1 improved 17 percent, year-on-year, to 2.21 million mt.
EBITDA in Q1 was BRL 569 million ($102.1 million), 17 percent up, year-on-year. Adjusted EBITDA margin slightly rose to 15 percent in Q1 this year, from 14 percent in Q1 2019.
USD = BRL 5.57 (May 22)