Usiminas reports second quarter earnings

Usiminas reports second quarter earnings

Brazilian steelmaker Usinas Siderurgicas de Minas Gerais S.A. (Usiminas) announced second quarter 2005 net revenues increased 27 percent due in large to cost savings measures implemented by the company. Net sales were $1.8 billion for the second quarter 2005, a decrease from the $2 billion seen for the same period in 2004. Year-to-date net sales were reported as $3.6 billion, a 7 percent decrease from same period in 2004. Net income for the second quarter was reported as $810 million compared to $528 million for the second quarter 2004. Year-to-date 2005 net income was $1.8 billion while year-to-date 2004 net income was $887 million. Rinaldo Campos Soares, CEO, said, “"The global steel industry is undergoing a moment of adjustment after the expressive results achieved as of the second half of 2004. The continuous efforts made for cost savings and maximization of opportunities are key elements.” He went on to comment on Usiminas outlook, “we face an environment of great challenges in a period marked by market retraction as a result of the country's weaker economic activity and by excessive inventory levels in some industrial segments, especially in distribution,” later adding, “We continue firmly determined to achieve increasingly better results.” Usiminas ranks among the largest Brazilian steel producers. It is the leader Company of Usiminas System, one of the world's 20 biggest steel groups, whose affiliated companies are involved not only in the steel business, but also in business areas in which steel plays a strategic role.