Usiminas finally swings to profit

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Thursday, April 20, 2017

Brazilian steelmaker Usiminas reported a net profit of 108mn reais (US$34.4mn) for Q1 after posting losses for 10 consecutive quarters.

The figure compares with a net loss of 151mn reais in 1Q16, Usiminas said in an earnings release.

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Adjusted Ebitda rose to 533mn reais from 51.6mn reais in 1Q16, the company's best result in 11 quarters. The adjusted Ebitda margin increased to 22.7% from 2.5%.

Net revenue rose to 2.35bn reais from 2.04bn reais, the company said.

Crude steel production fell 7.18% year-on-year to 737,000t. Steel sales volume increased to 930,000t from 903,000t, Usiminas said.

The company's mining arm, Mineração Usiminas, produced 681,000t of iron ore in 1Q17, compared with 701,000t a year earlier. Iron ore sales decreased to 643,000t from 974,000t.

Usiminas' consolidated gross debt at the end of the first quarter was 6.88bn reais, down 1% when compared with the previous quarter, and down 7% year-on-year, the steelmaker said.

Debt by maturity composition was 8.9% in the short term and 91.1% in the long term.