October 14, 2008

Gerdau Q1 revenue up by 23.8% YoY

Brazilian steelmaker Gerdau announced that its first quarter profit fell by 7.5% as costs from recent acquisitions and a strong local currency outweighed a sharp increase in sales.

Highlights
1. Crude steel production grows 25.1% in Q1 as compared to the same period in 2007, totaling 5.1 million tonnes.

2. Gross revenue reaches BRR 10.0 billion in the period from January to March this year, up by 23.8% higher than the same period in 2007.

3. Exports from Brazil generate revenues of USD 362.9 million, totaling 616,900 tonnes.

4. Net profit reaches BRR 1.1 billion in the quarter, with net margin of 12.2%.

5. EBITDA reaches BRR 2 billion until March this year, up by 30.4% higher than the value achieved in the same period in 2007.

6. Metalurgica Gerdau SA and Gerdau S.A. conclude capital increase of approximately BRR 1.5 billion and BRR 2.9 billion, respectively

7. Acquisitions announced and closed this year represent investments of USD 2.3 billion and business expansion abroad.