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 year.
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 said.
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).
Sao Paulo-based Gerdaus overall net income for the quarter fell 27 percent and shipments fell 3 percent (amm.com, Aug. 2).