Gerdau has lower net income in the 3rd quarter with cost pressure

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Brazilian steelmaker Gerdau said on Wednesday (9) that its adjusted net profit fell by about a third in the third quarter compared to the same period last year, with lower steel prices globally and rising input costs.

The company’s adjusted net income was R$3.02 billion, down 33.7% year-on-year, although practically in line with market projections. Analysts consulted by Refinitiv had expected a net profit of R$2.97 billion in the period.

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Rivals such as Usiminas and CSN had already reported weaker quarterly results, leading analysts to highlight the pressure of rising costs on Brazilian steelmakers’ results in the quarter.

Gerdau said its steel sales fell 10% to 2.93 million tonnes in the period, while net revenue stood at R$21.15 billion, almost stable year-on-year and in line with analysts’ estimates.

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Despite ongoing cost pressures, Gerdau classified the results as “solid” and highlighted a strong basis for comparison due to the volumes seen in the same period of 2021.

Gerdau also said that the lower international prices weighed on its adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, which fell 23.6% in 12 months, to R$ 5.37 billion.

Source: CNN Brasil

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