SAO PAULO, Nov 9 (Reuters) – Brazilian steelmaker Gerdau SA (GGBR4.SA) on Wednesday reported that its quarterly adjusted web revenue fell by a few third on a yearly foundation, as decrease world metal costs and rising enter prices take their toll on the business.
The underside line reached 3.02 billion reais ($587.09 million), down 33.7% from a yr earlier although roughly consistent with forecasts, as analysts polled by Refinitiv had anticipated a web revenue of two.97 billion reais within the interval.
Friends reminiscent of Usiminas(USIM5.SA) and Companhia Siderurgica Nacional(CSNA3.SA) had already reported weaker quarterly outcomes, main analysts to spotlight how rising prices had been set to strain steelmakers ends in Brazil within the three months to September.
Gerdau stated in a securities submitting that its metal gross sales dropped 10% to 2.93 million tonnes within the interval, whereas web revenues got here in almost steady year-on-year at 21.15 billion reais, additionally matching analyst forecasts.
Regardless of the continuing value pressures, Gerdau dubbed the outcomes as “strong,” noting there was a more durable comparability base attributable to robust volumes seen a yr in the past.
It additionally talked about that decrease worldwide costs weighed on its adjusted EBITDA, or earnings earlier than curiosity, taxes, depreciation and amortization, which dropped 23.6% to five.37 billion reais.
($1 = 5.1440 reais)
Reporting by Gabriel Araujo; Modifying by Steven Grattan
: .
