Brazilian steelmaker Usiminas has confidence in the country’s anti-dumping measures, expecting a sequential reduction in imports of the metal in the fourth quarter, executives said on Friday.
The company remains “attentive and concerned” about an increase in imports from China, Chief Executive Marcelo Chara said in an earnings call.
Usiminas reported a third-quarter net loss of 3.5 billion reais ($647.68 million) after taking a more than 2 billion real impairment loss from the revaluation of its steelmaking assets. Without that, it would have posted a net profit of 108 million reais, compared with 185 million a year earlier, it said.
Iron ore sales grew 9% by volume to 2.5 million metric tons, while steel sales fell 2% to 1.1 million tons in the quarter.
The company said it expects lower steel sales volumes in the fourth quarter, due to the typical seasonality of the period, while prices should be stable.
Executives said they expect positive cash flow in the next quarter and are confident about further cost reductions.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were 434 million reais in the quarter, up 2% from a year earlier but below the 458.7 million reais expected in an LSEG poll.
Analysts at BTG Pactual said the results were largely in line with expectations, but noted a “very challenging environment” for the steel division.
Usiminas’ Sao Paulo-traded shares pared earlier losses of more than 8% to stand about 1% lower in midday trading, underperforming Brazil’s benchmark Bovespa index, which was up 0.3%.
Source: Reuters
