SÃO PAULO 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 same comparison.
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 First.