Gerdau sees profit decline 15 percent in Q2

Gerdau sees profit decline 15 percent in Q2

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Brazilian integrated steelmaker Gerdau saw its net profit in Q2 decline 15 percent, year-on-year, to BRL 315 million ($59.4 million), the company said on Wednesday.

Gerdau attributed the decreased net profit in Q2 to a weaker gross profit, which totaled BRL 718 million ($135.4 million) in Q2, 44 percent down, year-on-year. The company said net revenues in Q2 fell 14 percent, year-on-year, to BRL 8.74 billion ($1.6 billion).

Crude steel output in Q2 diminished 29 percent, year-on-year, to 2.43 million mt, due to Covid-19 and as a result of halts in output. Gerdau said steel sales volumes in Q2 dropped 20 percent, year-on-year, to 2.36 million mt.

The Brazilian steelmaker reported an adjusted EBITDA of BRL 1.31 billion ($248.6 million), 16.2 percent down, year-on-year. EBITDA margin in Q2 slightly fell to 15.1 percent, from 15.5 percent in Q2 2019.

USD = BRL 5.30 (August 5)

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