Brazil's CSN swings to Q3 loss as iron ore prices, freight costs bite
SID•CSN reported a third-quarter net loss of 1.25 billion reais, versus a 76 million-real profit a year earlier. Adjusted EBITDA fell 43.5% to 1.88 billion reais, below analysts’ 2.1 billion-real forecast, while net debt rose 6.6% to 44.92 billion reais.
1. Quarterly results
Lower iron ore prices and higher freight costs weighed on CSN’s mining unit, while seasonal factors in external steel operations and higher cement production costs also affected results. Net revenue fell 11.1% to 10.49 billion reais, compared with analysts’ forecast of 10.6 billion reais.
2. Debt and divestment
CSN’s leverage ratio rose to 4.23 at the end of September from 3.49 a year earlier. The company is pursuing a divestment plan to lower debt and earlier this week announced the sale of its cement unit to China's Huaxin in a $2.3 billion deal. Its mining unit, CSN Mineracao, separately reported a 356 million-real loss, compared with a 696 million-real profit a year earlier.
