NEW YORK Gerdau SAs
global first-quarter sales remained flat year on year at about
9.2 billion reais ($4.6 billion) even as the companys
North American operations excluding Mexico and its specialty
steel operations recorded a decline due to a severe winter and
Net sales for the São
Paulo-based companys North American operations excluding
Mexico and specialty steels dropped 7 percent in the first
quarter to 2.93 billion reais ($1.46 billion) compared with
3.14 billion reais in the year-ago period, the company reported
The lower sales came as
Gerdaus North American segment saw steel production fall
22 percent year on year to 1.47 million tons as a harsh winter
tightened demand, the company said.
"In the North America (business
operations), production was reduced to adapt to the level of
inventories and the weaker demand caused by the more severe
winter in the first quarter of 2013 compared to the first
quarter of 2012," the company said.
Gross profits for the North American division totaled 171
million reais ($85.2 million) in the first quarter, a
49-percent drop from profits in the same quarter of 2012.