GGB' 2Q Up on Y/Y comp. - Analyst Blog
03 Agosto 2012 - 1:00PM
Zacks
Brazilian steel producer,
Gerdau S.A. (GGB) reported its financial results
for the second quarter of 2012 on August 2, 2012. The company’s net
income increased 9% year over year to R$549 million (US$280.1
million). The bottom-line results were largely impacted by higher
cost of sales that offset revenue improvement reported in the
quarter.
Revenue
Net revenue in the quarter jumped
10.7% year over year to R$9,975 million (US$5,089.3 million).
As for the net revenue, Brazilian
business accounted for about 37.3% and registered a 4% increase
over the year-ago quarter. North American revenue increased 18% and
contributed 31.9% to net revenue while Latin American revenue
represented 12.8% of net revenue and spiked 33% over the year-ago
period. Revenue from Specialty Steel grew 2% year over year and
accounted for about 20.8% of net revenue.
Crude steel production in the
quarter declined 2% year over year to 5,046 million tons,
especially due to disruption in Brazilian production with units
being largely affected by heavy rainfall. Shipments were also down
2% year over year to 4,778 million tons; with business weal in all
business operations. However, Latin American business showed
strength in the quarter.
Margins
Gross margin in the quarter went
down by 130 basis points to settle at 14.3%, as higher revenue
growth was offset by a 12.4% increase in cost of sales. Selling
expenses, as a percentage of revenue, were at 1.50%; down compared
with 1.74% in the year-ago quarter. General and administrative
expenses dipped 9 basis points year over year to 4.88%.
EBITDA at R$1,244 million (US$634.7
million) was down 5% year over year with a margin of 12% in the
quarter. Operating margin was 7.9% versus 9.7% in the year-ago
quarter.
Balance Sheet
Exiting the second quarter, Gerdau
had cash and cash equivalents of approximately R$1,664.1 million
(US$800.0 million), reflecting a sequential increase of 22.5%.
Long-term debt increased 3.9% to R$11,296.6 million (US$5,431.1
million).
Cash Flow
Net cash flow from operating
activities in the second quarter 2012 was R$1,046.5 million
(US$533.9 million) as against cash outflow of R$874.1 million
(US$549.7 million) in the year-ago quarter. Capital spending more
than doubled in the quarter to reach R$850.1 million (US$433.7
million).
Gerdau S.A., one of the foremost
steel producers in Brazil, plans to spend roughly R$10.3 billion
for the period from 2012 to 2016. The company faces stiff
competition from its peers like Companhia Siderurgica
Nacional (SID), Arcelor Mittal (MT) and
Usinas Sider (USNZY.PK).
GERDAU SA ADR (GGB): Free Stock Analysis Report
ARCELOR MITTAL (MT): Free Stock Analysis Report
CIA SIDERUR-ADR (SID): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Lug 2023 a Lug 2024