In a noteworthy financial turnaround, the Brazilian steel and iron ore producer CSN triumphed with a net profit of BRL 283 million ($58 million) for the second quarter of 2023, marking a stark contrast to the net loss of BRL 823 million in the previous quarter.However, under the same comparative basis, the company faced challenges, witnessing a 2.9% decline in net sales revenues to BRL 10.99 billion, a 31 percent drop in gross profit to BRL 2.24 billion, and a 29% decrease in EBITDA to BRL 2.26 billion.The reduced financial performance in Q2 can be chiefly attributed to lower steel and iron ore prices. Nevertheless, the company effectively recovered from the net loss incurred in Q1, as most factors contributing to the previous net loss had non-recurrent impacts, such as exchange rate and iron ore hedging, both of which rebounded in Q2, the company disclosed.On the sales front, domestic sales of steel products showed resilience, increasing by 10 percent to 739,000 metric tons, while steel exports experienced a slight decline of 14% to 312,000 metric tons.In contrast, domestic iron ore sales demonstrated substantial growth, surging by 51% to 1.006 million metric tons, and iron ore exports rose by 29% to 10.26 million metric tons.
In a noteworthy financial turnaround, the Brazilian steel and iron ore producer CSN triumphed with a net profit of BRL 283 million ($58 million) for the second quarter of 2023, marking a stark contrast to the net loss of BRL 823 million in the previous quarter.However, under the same comparative basis, the company faced challenges, witnessing a 2.9% decline in net sales revenues to BRL 10.99 billion, a 31 percent drop in gross profit to BRL 2.24 billion, and a 29% decrease in EBITDA to BRL 2.26 billion.The reduced financial performance in Q2 can be chiefly attributed to lower steel and iron ore prices. Nevertheless, the company effectively recovered from the net loss incurred in Q1, as most factors contributing to the previous net loss had non-recurrent impacts, such as exchange rate and iron ore hedging, both of which rebounded in Q2, the company disclosed.On the sales front, domestic sales of steel products showed resilience, increasing by 10 percent to 739,000 metric tons, while steel exports experienced a slight decline of 14% to 312,000 metric tons.In contrast, domestic iron ore sales demonstrated substantial growth, surging by 51% to 1.006 million metric tons, and iron ore exports rose by 29% to 10.26 million metric tons.
