Brazilian steel and iron ore producer Usiminas posted a net profit of BRL 36 million ($7.03 million) for Q1 2024, 93 percent less than in Q1 2023.
Under the same comparative basis, net sales revenues declined by 14 percent to BRL 6.223 billion, the production costs declined by 9 percent to BRL 5.823 billion and the gross profit declined by 55 percent to BRL 399 million.
With operational expenses reduced by 22 percent to BRL 268 million, the operational profit declined by 76 percent to BRL 131 million.
In volume, the sales of steel products increased by 1 percent to 1.042 million mt while iron ore sales increased by 4 percent to 1.962 million mt.
The company ascribed the reduced profit to lower steel products and iron ore average prices. In the case of steel products, exports to Argentina have declined sharply, reducing the sale of highly priced products, chiefly heavy plates destined to the production of gas pipelines.
The company unveiled positive perspectives for the second quarter of 2024, due to the reduced production costs and increased operational performance associated to the revamping of its largest blast furnace, coupled with increased demand from the automotive, domestic appliances, and oil and gas sectors.
For its iron ore mining activities, the company expects for the second quarter a stable volume of demand and sales.