SÃO PAULO Gerdau
SAs crude steel output and steel sales fell slightly last
year due to a slowdown in emerging economies, the eurozone
crisis and U.S. fiscal uncertainties.
Crude steel output fell 3.6
percent year on year in 2012 to 18.9 million tonnes, while
shipments slipped just shy of 3 percent to 18.6 million tonnes
vs. 2011, the Porto Alegre, Brazil-based company said Feb. 21
with the release of its earnings results.
Full-year production and
shipments fell in three of the companys main
divisionsBrazil, North America and special
steelwith only the Latin America business logging an
The Brazilian operations
shipments fell 4.6 percent for the year ended Dec. 31, 2012, to
7.3 million tonnes, excluding special steel. Domestic Brazilian
sales rose 4.7 percent to 5.3 million tonnes while exports slid
22.9 percent to 1.98 million tonnes.
Sales to the domestic Brazilian
market increased 5 percent to 5.3 million tonnes, and shipments
to other Latin American countries rose 2 percent to 2.7 million
tonnes. Shipments to North America fell slightly to 6.5 million
The special steel
businesscomprising operations in Brazil, Spain, the
United States and Indiasaw the largest decrease in
shipments, which fell 10.4 percent to 2.7 million tonnes on the
back of poorer results in the Brazilian and European
Net income for the year slipped
to nearly 1.5 billion reais ($759.9 million), down 28.7 percent
from almost 2.1 billion reais in 2011, on revenue that jumped
7.3 percent to 37.98 billion reais ($19.24 billion) from 35.41
billion reais in 2011. Net sales per tonne shipped increased in
all business operations, offset by higher raw materials costs,
the steelmaker said.
Earnings before interest, taxes,
depreciation and amortization (Ebitda) fell 10.2 percent year
on year to almost 4.18 billion reais ($2.12 billion) in 2012
from 4.65 billion reais a year earlier.
"Throughout 2012, besides the
reflections of the global economic environment on the
performance of the company, we experienced an increase in costs
of important raw materials, notably scrap and freight, which
(affected) the profitability of the sector as a whole," chief
executive officer André Gerdau Johannpeter said.
A version of this article
was first published in AMM sister publication Steel