NEW YORK Gerdau
SAs North American business operations reported a sharp
drop in second-quarter earnings compared with the same period
last year as shipments waned due to import competition as well
as the installation of new management software early this
The North American
operations gross profit totaled 187 million reais ($81.8
million) for the three months ended June 30, down 46.7 percent
from 351 million reais a year earlier. North American profit
margins dropped to 6 percent from 11 percent in the same
comparison as steel shipments fell 2.5 percent to 1.55 million
tonnes from 1.59 million tonnes, the company said.
"In the North America
(business operations), the reduction in shipments reflected the
installation of a new management software throughout 2012 and
early in 2013 and the higher imports in the period," Gerdau
U.S. rebar imports
climbed some months earlier this year (
amm.com, May 2), and Gerdau delayed many of its
shipments earlier this year due to the software installation
amm.com, May 14).
Gerdaus overall net income for the quarter fell 27
percent and shipments fell 3 percent (
amm.com, Aug. 2).