Brazil's Usiminas first-quarter profit falls 93%
Adds more details in paragraphs 3-6
SAO PAULO, April 23 (Reuters) -Brazilian steelmaker Usiminas USIM5.SA reported on Tuesday a 93% decline in its first-quarter net profit, despite the slight uptick in steel and iron ore sales.
The company posted profit of 36 million reais ($6.97 million)for the first three months of 2024, compared with 544 million reais a year earlier.
Usiminas sold 1.04 million metric tons of steel in the period, or 1% above the figure reported a year earlier, with the automotive sector leading the purchases, the company said, adding that it expects sales to be flat in the second quarter.
Sales of iron ore products grew 4% year-on-year to 1.96 million tons. Significant volatility in the price of iron ore negatively affected the pricing of Usiminas' exports, which accounted for 64% of total sales of the commodity, it said.
"In the quarter there were greater sales of products with discounts based on quality, also affecting the average value," the firm said.
Its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 47% to 416 million reais, but still landed above the estimate of analysts polled by LSEG of 387 million reais.
($1 = 5.1658 reais)
Reporting by Peter Frontini; Editing by Steven Grattan
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
