Usiminas reported Real 325m loss despite 615m Q4 profit

Usiminas reported Real 325m loss despite 615m Q4 profit

Brazilian flats producer Usiminas released its results for 2002 and announced a Real 325million ($91 million) consolidated net loss with a 233% decrease from a net profit of Real 245million recorded previous year, including the associated company Cosipa's results. Total sales showed an increase when compared to 6.6 million tonnes in 2001 and reached to 7.7 million tonnes. As domestic sales maintained its level at 5.4 million tonnes, the main reason for such an increase in total sales is exports, with Cosipa's significant contribution, that grew by %97.9 to 2.3 million tonnes. Together with increased sales and the recovery of international steel product prices as well as favorable exchange rate of dollar, company's net revenues increased by %36 for 2002 to Real 6.6 billion. Company stated that, although they recorded a net profit of Real 615 million in the last quarter of 2002, 52% devaluation of Real on company's debt in US $ played a very important role in consolidated net loss for year 2002. Besides, Usiminas said that in 2003, upon completion of investments in the mills and expansion plans for production capacity, they are planning to use their cash flow to reduce debts.