SAO PAULO, Feb 23 (Reuters) – Brazilian steelmaker Gerdau on Monday reported a 0.5% increase in its fourth-quarter adjusted net profit when compared to a year earlier, as its booming North American operations were offset by challenges in the Brazilian market. BY THE NUMBERS * Gerdau’s adjusted net profit rose to 670 million reais($129.59 million) […]
Business
Brazil’s Gerdau posts flat Q4 net profit increase as key markets diverge
Audio By Carbonatix
SAO PAULO, Feb 23 (Reuters) – Brazilian steelmaker Gerdau on Monday reported a 0.5% increase in its fourth-quarter adjusted net profit when compared to a year earlier, as its booming North American operations were offset by challenges in the Brazilian market.
BY THE NUMBERS
* Gerdau’s adjusted net profit rose to 670 million reais($129.59 million) in the October-December quarter. * Its adjusted earnings before interest, taxes, depreciationand amortization (EBITDA) came in at 2.37 billion reais, down0.7% and mostly in line with the 2.41 billion reais expected byanalysts in an LSEG poll. * Total revenue in the quarter came in at 16.97 billionreais, up 0.9% from a year earlier and above analysts’projection of 16.63 billion reais.
“OPPOSITE DYNAMICS”
* Gerdau noted the quarterly results were impacted by”opposite dynamics” in its two largest markets – Brazil andNorth America, respectively. * Gross profit in North America jumped 172% year-on-year inthe fourth quarter to 1.56 billion reais, with resilient demandand manageable costs boosting its business. * In Brazil, gross profit tumbled 87.2% to 161 million reaiswhen compared to the same period a year earlier. * Gerdau mentioned seasonality effects and the pressure ofsteel imports to explain the numbers in its domestic market.
($1 = 5.1703 reais)
(Reporting by Fernando Cardoso, Editing by Iñigo Alexander)