Brazilian Gerdau group posted a consolidated net profit of BRL 4.29 billion ($824 million) for the second quarter of 2022, against BRL 2.94 billion achieved in the previous quarter.
Net sales increased by 13 percent to BRL 22.968 billion and the EBITDA increased by 14.8 percent to BRL 6.680 billion. According to the company, the increased EBITDA reflects the current stage of demand and prices in the steel industry, with prices for their turn reflecting higher production costs.
By volume, production of crude steel increased by 0.7 percent to 3.43 million mt, while sales of steel products increased by 6.2 percent to 3.25 million mt.
The higher volume of sales “attests the resilience of the construction and industrial sectors and the gradual recovery of the automotive sector,” the company said in a press release.
In terms of business divisions of the group, during Q2 Brazil was responsible for 45.3 percent of the group’s net sales and 32.3 percent of its EBITDA, while North America had respectively 33.2 percent and 42.6 percent, South America had 8.6 percent and 11.1 percent and the specialty steels business division had 12.9 percent and 14.8 percent.
Gerdau added that the highlight of the second quarter was the larger contribution by the North American business division, supported by the stronger metals spread in the US.
USD = BRL 5.28 (August 3)