Gerdau SAs net profit declined nearly 27 percent
year on year in the second quarter of 2013, reflecting a
reduction in operating income over the three-month period.
Net income totaled 401
million reais ($175.4 million) during the quarter, down from
549 million reais in the same 2012 period, the Brazilian
steelmaker said Aug. 1. However, compared with the first
quarter of 2013 net income more than doubled from 160 million
reais, mainly due to improved operating performance.
Gerdau reported stable
sales, at 9.88 billion reais ($4.32 billion), compared with a
year earlier despite a 3-percent decrease in steel shipments.
The drop was mainly due to a 47.4-percent year-on-year drop in
Brazilian exports to 262,000 tonnes, which were partially
redirected to the domestic market, particularly semifinished
goods, Gerdau said.
Local sales in Brazil,
in turn, increased by 6.2 percent to 1.5 million tonnes in the
Sales in Latin America
increased 6 percent year on year to 726,000 tonnes, and those
in the special steel business by 4.8 percent to 766,000 tonnes
during the quarter.
Gerdau reiterated its
goal of investing 8.5 billion reais ($3.7 billion) in its steel
and iron ore businesses between 2013 and 2017.
But considering the
large volume of investments made in 2012 and uncertainty about
the global economic market, "Gerdau remains more selective in
evaluating its future investments," it added.
A version of this
article was first published in AMM sister publication Steel