Brazilian steelmaker Votorantim saw revenues decline 6 percent in Q1, year-on-year, to BRL 898 million ($249.9 million), the company said on Wednesday while releasing its quarterly results.
The company attributed the diminished revenues to lower volumes and prices at its Brazilian operations, as a result of a “steady decline in the construction and infrastructure sectors along with increased competition in the construction and distribution segments.”
Adjusted EBITDA at Votorantim’s long steel arm was BRL 56 million in Q1, 36.3 percent down, year-on-year, while EBITDA margin fell to 6.2 percent in Q1 from 9.2 percent in the same quarter of the previous year.
Despite seeing lower revenues and EBITDA figures at its Brazilian operations, Votorantim saw the two indicators rise in Argentina and Colombia.
In Argentina the rise was mainly due to higher prices, as a result of the devaluation of the ARS over the USD, while in Colombia the increase was due to increased sales volumes and higher prices, as a consequence of the antidumping measures taken against China.
Votorantim Industrial, the holding company that manages Votorantim’s long steel operations, posted a BRL 144 million net profit in Q1, 111.7 percent up, year-on-year.
1 USD = BRL 3.59 (June 1)