Gerdau S.A. Back with a Bang – Analyst Blog
Source: http://www.zacks.com/stock/news/26945/Gerdau+S.A.+Back+with+a+Bang+-+Analyst+BlogPosted on Thursday, November 5th, 2009 | In Investing Lessons, Stocks to Watch
Today, Gerdau S.A. (GGB) announced consolidated results for the third quarter of 2009. The company did not provide comparable year-on-year figures in a securities filing.
Sales reached 3.9 million tons in the quarter, 15% higher than in the second quarter of 2009, reflecting the recovery in the main sectors that consume the company’s products.
Net Revenue reached R$6.8 billion in the 3rd quarter of 2009, 6% higher than in the previous quarter.
Third quarter EBITDA reached R$1.4 billion, more than double the amount in the 2nd quarter of 2009. The EBITDA margin increased to 20.2% in the 3rd quarter of 2009 from 9.3% in the 2nd quarter.
Net Income was R$655 million in the quarter, compared to a net loss of R$329 million in the previous quarter, reflecting the recovery in the company’s operating margins in the period. However, it was 54% lower than the previous year.
Investments in fixed assets totaled R$232 million. Gross debt was R$16.1 billion, a reduction of R$2.8 billion compared to June of 2009, due to amortizations and the foreign exchange variation in the period.
The company approved a payment of R$106.5 million in dividends, in the form of interest on capital, for Gerdau S.A. shareholders and R$ 67.1 million for Metalurgica Gerdau S.A. shareholders, based on the results of the first nine months of 2009.
Steel stocks provide one more interesting contrast between Brazil and America. American steel-related stocks like U.S. Steel (X), Steel Dynamics (STLD), Commercial Metals (CMC) and Cliffs Natural Resources (CLF) have already corrected 10-25% from recent 2009 highs. Brazilian steel-related stocks like Companhia Vale do Rio Doce (VALE) and GGB remains just below 12-month highs.
We expect the Brazilian economy to outperform the U.S. for many years to come.
Read the full analyst report on “GGB”
Read the full analyst report on “X”
Read the full analyst report on “STLD”
Read the full analyst report on “CLF”
Read the full analyst report on “VALE”
Read the full analyst report on “CMC”
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