NEW YORK Gerdau SAs North American business operations, excluding Mexico and special steel, recorded a 33.6-percent year-on-year drop in third-quarter gross profit to 148 million reais ($66.38 million).
Shipments by its North American operations fell 9 percent to just under 1.61 million tonnes in the third quarter from nearly 1.77 million tonnes a year earlier, which the company attributed to high imports as well as the installation of new management software over the past 12 months (amm.com, March 6).
The Porto Alegre, Brazil-based companys gross margins in its North America segment dropped to 4.3 percent in the third quarter from 6.5 percent a year ago due to lower prices and the temporary closure of a melt shop in Canada (amm.com, Aug. 6). Net sales rose 0.8 percent to more than 3.44 billion reais ($1.54 billion), offset by a 3.2-percent increase in cost of goods sold to nearly 3.3 billion reais ($1.48 billion). The increase in cost of goods sold mainly reflected changes in the exchange rate, Gerdau said.