Usiminas Reports Q2 Result
Usiminas ended the second quarter of the year with a 125% increase in net income. The total amount between April and June was R$ 171 million, compared to a net profit of R$ 76 million in the previous quarter. In the same period, the Company's consolidated Adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) reached R$ 576 million, an increase of 18% compared to the first quarter of the year, when Adjusted Ebitda was R$ 488 million. The increase is mainly associated to higher steel sales volumes and higher iron ore and steel prices.
In the second quarter, Usiminas total steel sales reached 1.1 million tons, 4% up, over the first three months of the year. A total amount of 949 thousand tons was traded in the domestic market (7.2% increase compared to 1Q19) and 110 thousand tons in the foreign market (7.5% reduction when compared to 1Q19). According to information released by “Brazil Steel Institute”, apparent consumption of flat steel products in the country reached 6.2 million tons in the first six months of 2019, 1.4% up over the same period last year.
Usiminas CEO, Mr Sergio Leite, points out that, the company has been concentrating all its efforts to continue presenting solid results, as recent indicators of economic activity in the country are below expectations. He added that “Economic recovery remains slow. Central Bank's Economic Activity Index, “IBC-Br”, indicated a 0.06% drop in the first four months of the year and Focus Bulletin shows that after falling 19 consecutive times, the country's GDP projection is currently below 1%”.
Mr Leite emphasizes that, even in this scenario, Usiminas has reached a production of rolled products at Ipatinga and Cubatão plants of 1.1 million tonnes, 4% up, over the first quarter. He said that “Our goal is to surpass results, regardless the difficulties and complexity of the economic scenario.”
In terms of investments, the company ended the second quarter with an increase of 19% compared to the previous quarter. Usiminas Capex in the period reached R$ 105 million with investments directed mainly to sustaining Capex, safety and environment.
Source : Strategic Research Institute