Quarter sexual factors and heavy rains weather led to Brazil steel enterprise first quarter earnings decreased ability, including Gail way and Brazil national black metallurgy company net profit compared to the same period, annulus comparing all appear decreases, and the meters gilardino kenaz, the company has turned surplus for losses, the company for equity structure change extra financial cost is low, is one of the reasons for its earnings.
Gail way
North America needs support earnings
In the first quarter this year, Brazil Gail way group net profit for 397
million reais ($208 million), the same period last year 409 million reais fell 3%, in addition to high cost of raw materials, profitability by Brazil and the influence of domestic to industrialization, and at the same time, MiNaSiJiLaSiZhou heavy rains have also affected the way of Gail production and transportation. Iron ore, coal and scrap steel prices drive cost rise, lead to the group hair from the same period last year profit margins of 14% to 12%. Quarter net sales income for Gail way 9.2 billion reais, up 10%, this is due to the steel prices higher.
Quarter, Gail way crude steel production increased 4% year-on-year to 4.94 million t, mainly attributable to North America to steel manufacturing, energy demand to rise, the crude steel production in
North America in the first quarter grew 7% to 1.9 million t, accounts for about 38% of the group crude steel production; FaHuoLiang for 4.72 million t, basic and the same period last year unchanged. Points area to see, Brazil department FaHuoLiang steel reduce, the main reason is the decline of exports, seasonal factors and Brazil in logistics problems so as to influence the rainy season to supply of raw material and product transportation. North American department FaHuoLiang increased, and to reach since September 2008 since the financial crisis of the highest quarterly level. Special steel department FaHuoLiang decreased, the reason is Brazil decline in demand for steel, at the same time because the European economic recession, from the region's orders fell.
Five years of $5.5 billion investment plan
Despite the global economic growth remains uncertain, but still in the way to continue to push forward the Gail 2012-2016 in global investment 10.3 billion reais ($5.5 billion) plan.
Gail way investment of the year to the first quarter 691 million reais ($364 million), of which about us $254 million allocated to Brazil department, one of the important projects including Brazil Acominasga steel mills will in the end of 2012 or early 2013 start of the material production business flat.
In addition, Gail way of investment plan covered Brazil and the United States special bar capacity (SBQ) to further improve the, Rio DE janeiro Cosigua factory capacity expansion and finish rolling line, sintering India's new construction.
A new caster and a SBQ testing lines will be installed in the two American steel mills, a total investment of 130 million reais ($70 million), including $21.6 million for installation in Monroe, Michigan factory lines, $50 million to Minnesota for Sao Paulo steel mill change caster, make special steel rod can increase the annual capacity of 100000 t to 550000 t.
In addition, Gail way will also invest 192 million reais ($100 million) to enhance the Columbia steel rolling crude steel production capacity and capability, the purpose of which is to meet local needs growth, by 2015 the crude steel rolling and output will reach 950000 t respectively and 1.1 million t.
At the same time, investment to achieve self-sufficiency of iron ore project are also going on. Gail way plans to invest 838 million reais ($436 million), by 2014 iron ore yields nearly doubled, from the current about 6.5 million t increased to 11.5 million t, aims to reduce the cost and benefit from the raw material prices. Now Gail way iron ore estimate about 2.9 billion t reserves, and is still in potential partners and will help develop iron ore in talks.
M kenaz, gilardino
A loss in the first quarter
2012 quarter, m kenaz gilardino was (Usiminas) net losses of 37 million reais, from the fourth quarter of last year and the same period last year profit of 77 million reais respectively and 16 million reais for full turn deficit, the main reason is the exchange and financial cost increase net losses; EBITDA (income taxes, depreciation and amortisation profits before) 190 million reais, annulus year-on-year, decrease by 13% and 44% respectively; Net sales income is 2.886 billion reais, annulus comparing growth of 3%, the main reason is flat steel and iron ore sales growth; EBITDA rate from the fourth quarter of last year, 7.7% to 6.6%, and net sales income growth can't cover the cost up; Crude steel production of 1.67 million t, annulus comparing growth of 11% year-on-year decline 6%; Steel FaHuoLiang 1.51 million t, which accounted for 82% of the domestic market, export 18%, and exports increased by 31% month-on-month, which benefit from the new shareholder, nyon steel company, in the overseas market impact; Iron ore production for 1.85 million t, annulus year-on-year, up by 11% and 19% respectively.
M kenaz, girardi said that by seasonal factors influence, the first quarter of this year performance in the whole of the weak performance. But net sales income and in the first quarter of FaHuoLiang month-on-month growth also on certain level shows the operation environment more stable, at the same time as the implementation of the methods to improve the authors, m kenaz gilardino 'competitiveness will get promoted.
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