Votorantim Siderurgia, the long steel arm of Brazil-based holding company Votorantim Industrial, saw its net revenues decline 14 percent in Q1, year-on-year, the company said on Thursday. Net revenues in Q1 totaled BRL 363 million ($110.5 million), down from BRL 420 million ($127.8 million) in the same quarter of the year prior.
The company attributed the decline in revenues mainly to a 25 percent depreciation in the Argentinian peso (ARS) over the Brazilian real (BRL) and to decreased sales in Colombia, which are a result of diminished demand in the local domestic market due to infrastructure projects delays.
Votorantim Siderurgia said the company’s net revenues in Q1 did not include data from Brazil, as it entered into an agreement with ArcelorMittal Brazil in February to merge their domestic long steel operations.
The company’s adjusted EBITDA in Q1 was BRL 44 million ($13.4 million), 46 percent down, year-on-year. EBITDA margin declined to 12 percent in Q1 from 19 percent in Q1 2016.
The long steel business accounted for 6 percent Votorantim Industrial’s total revenues in Q1 this year. Votorantim Industrial went from a BRL 144 million ($43.7 million) net profit in Q1 2016 to a BRL 546 million ($166 million) net loss in Q1 this year.
USD = BRL 3.28 (May 25)