The Brazilian Gerdau group posted a consolidated net profit of BRL 2.052 billion ($402 million) for the first quarter of 2024, against BRL 3.215 billion ($629.2 million) achieved in the previous quarter.
Net sales declined by 14.1percent to BRL 18.210 billion ($2.57 billion), the gross profit declined by 33.3 percent to BRL 2.419 billion ($474.4 million) and the EBITDA declined by 35.9 percent to BRL 2.752 billion ($539 million).
In volume, the production of crude steel declined by 11.7 percent to 1.367 million mt, while sales of steel products increased by 2.4 percent to 1.300 million mt.
In terms of business divisions of the group, considering the first quarter of the current year, Brazil was responsible for 38.6 percent of the group’s net sales and 20.6 percent of its EBITDA, while North America had respectively 38.5 percent and 54.3 percent, South America had 15.7 percent and 15.2 percent and the specialty steels business division had 7.2 percent and 9.9 percent.
According to the company, the first quarter was still marked by the challenges posed by surplus steel imports in the Brazilian market, adding that the recent measures announced by the government to curb excess imports should be celebrated, although the challenges have not yet been solved.
“We continue to monitor the entry of imported steel and to dialog with government bodies, seeking a balance between the national industry and the global dynamics of the steel trade”, the company said.
USD = BRL 5.10 (May 6)