Companhia Siderurgica Nacional net income in the first quarter 2012 was ZAR 92.6 million (USD 52.3 million) versus ZAR 615.7 million (USD 370.9 million) in the year ago quarter. Fall in net income was attributable to lower gross profits due to rise in cost of goods sold.

The company generated net revenues of ZAR 3,896 million (USD 2,201 million) in the first quarter 2012, registering a growth of 3% year over year and sequential decline of 7% due to fall in iron ore sales volume and prices

Crude steel production in the quarter was 1.20 million tonnes and rolled steel was 1.11 million tonnes, up 6% and 8% year over year, respectively. Steel sales volume inched up 9% sequentially to 1.3 million tonnes, of which domestic sales accounted for 79.0%, overseas subsidiaries 19% and direct exports around 2%.

Iron ore sales were down 17% sequentially to 6.7 million tons. Of total sales, domestic market accounted for 3.0% and exports about 97.0%.

During the first quarter 2012, cost of goods sold went up 23.3% year over year to ZAR 2,752.6 million (USD 1,555.1 million), leading to a fall in gross margin to 29% from 41% in the year-ago quarter.

Adjusted EBITDA in the quarter dipped 27% to ZAR 1,113 million (USD 628.8 million) with a margin of 29% compared with 40% in the year ago quarter. Net financial results increased 21.2% year over year to an expense of ZAR 628.2 million (USD354.9 million).

Source - community.nasdaq.com

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