SAO PAULO (Reuters) – Brazilian steelmaker Gerdau SA on Wednesday reported that its quarterly adjusted net profit fell by about a third on a yearly basis, as lower global steel prices and rising input costs take their toll on the industry.
The bottom line reached 3.02 billion reais ($587.09 million), down 33.7% from a year earlier though roughly in line with forecasts, as analysts polled by Refinitiv had expected a net income of 2.97 billion reais in the period.
Peers such as Usiminas and Companhia Siderurgica Nacional had already reported weaker quarterly results, leading analysts to highlight how rising costs were set to pressure steelmakers results in Brazil in the three months to September.
Gerdau said in a securities filing that its steel sales dropped 10% to 2.93 million tonnes in the period, while net revenues came in nearly stable year-on-year at 21.15 billion reais, also matching analyst forecasts.
Despite the ongoing cost pressures, Gerdau dubbed the results as “solid,” noting there was a tougher comparison base due to strong volumes seen a year ago.
It also mentioned that lower international prices weighed on its adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, which dropped 23.6% to 5.37 billion reais.
($1 = 5.1440 reais)
(Reporting by Gabriel Araujo; Editing by Steven Grattan)
