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Gerdau net sales decreased 3%, sales in U.S. up 12%

Staff writer ▼ | May 6, 2016
In the first three months of 2016, Gerdau, one of the largest suppliers of special steel in the world, posted net sales of R$10.1 billion, a reduction of 3% from the same period last year.
Steel industry   Gerdau sold 3.9 million tonnes of steel goods
In the period from January to March, the highlights were the company's strong presence in the U.S. market, where net sales grew 12%, and the 72% growth in exports from Brazil, which partially offset the lower shipments to Brazil's domestic market.

In the first quarter, Gerdau sold 3.9 million tonnes of steel goods, or 7% less than in the prior-year period. Steel production came to 4.2 million tonnes, declining 4%, which supported the optimization of inventories.

As a result, consolidated operating cash generation (EBITDA) came to R$930 million, down 16% from the first quarter of 2015, reflecting the weaker performance of the long and special steel operations in Brazil.

However, compared to the fourth quarter of 2015, consolidated EBITDA advanced 2%, led by the growth of 33% in the Brazil Division (excludes the special steel mills) and of 15% in the Special Steel Division (includes the mills producing special steel in Brazil, the United States, Spain and India).

Compared to the first quarter of 2015, the highlights were the EBITDA growth of 40% in the North America Division (includes the long steel mills in the United States, Canada and Mexico) and of 44% in the South America Division (excludes Brazil).

Consolidated net income was R$14 million, decreasing 95% from 1Q15, reflecting the lower operating income. Nevertheless, net income in the quarter increased in relation to the fourth quarter of 2015, when Gerdau posted an adjusted net loss of R$41 million, excluding nonrecurring items.