Votorantim’s long steel arm, Votorantim Siderurgia, posted declining revenues in Q2, the company said in an earnings report.
According to the industrial group, revenues at its long arm business fell 11 percent in Q2, year-on-year, to BRL 927 million ($291.83 million), mainly because of a drop in volumes at all its operations in Brazil, the company explained, adding the decrease also reflected the bearish economic scenario in the country.
“The unfavorable economic scenario in Brazil remained throughout the quarter, negatively affecting prices, which reached their lowest level in recent months,” the company noted.
Votorantim said that despite the negative scenario in Brazil, its Argentinian business achieved “higher margins and higher [Argentinian pesos] ARS prices.” However, prices in BRL were lower when compared to Q2 2015.
Votorantim Siderurgia said adjusted EBITDA in Q2 was BRL 102 million, 19 percent down, year-on-year. EBITDA margin in the same period diminished to 11 percent from 12 percent in Q2 2015.
Votorantim Industrial, the holding company that owns Votorantim Siderurgia, posted a BRL 318 million net profit in Q2, 47 percent down, year-on-year, while revenues in the same period totaled BRL 7.5 billion, 4 percent down, year-on-year.
1 USD = BRL 3.17 (August 15)