Usiminas announced this Friday (10) a loss for the fourth quarter, reversing the positive results obtained a year earlier and in the three immediately preceding months, with declines in sales of steel and iron ore and recognition of impairment of R$ 1.7 billion related to the value of its assets.
The company, which is preparing to start a major overhaul of the largest blast furnace at its plant in Ipatinga (MG), had a net loss of R$839 million in the fourth quarter, reversing a profit of R$2.49 billion obtained a year earlier. . Steel sales fell 9% and iron ore fell 8%.
As a result, net revenue decreased by 5% in the annual comparison, to R$ 7.66 billion.
The company stated that it forecasts an investment of BRL 3.2 billion in 2023, up 46.5% over 2022, driven by billionaire costs with the renovation of equipment in Ipatinga.
The company has already been building stocks of steel slabs purchased from third parties for some months to deal with the blast furnace shutdown of several months for rebuilding.
Cash generation measured by Usiminas’ adjusted earnings before interest, taxes, depreciation and amortization in the fourth quarter was R$579 million, down 76% over the performance of a year earlier. The margin increased from 31% to 8% in the period.
Analysts expected Ebitda of BRL 481.5 million for Usiminas in the period, with revenue of BRL 7.33 billion, according to data from Refinitiv.
The expectation for the final line of the balance sheet was a loss of R$ 22.8 million.
Source: CNN Brasil
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
2.jpg "Byung-chul Han is the most posted thinker of Gen Z (even if his thought is anti-social)")
