Brazil's Gerdau Q2 profit jumps 70%, meets estimates
GGB•Gerdau reports higher second-quarter profit and EBITDA
SAO PAULO, Aug. 4 (Reuters) - Brazilian steelmaker Gerdau GGBR4.SA on Tuesday reported a 69.7% jump in adjusted second-quarter net profit from a year earlier, with quarterly results helped by stronger pricing, a more favorable sales mix and operational efficiency gains.
- Adjusted net profit stood at 1.5 billion reais ($292 million), matching the average estimate of analysts polled by LSEG.
- Adjusted EBITDA increased 33.9% from a year earlier to 3.4 billion reais ($664 million), topping the LSEG consensus estimate of 3.2 billion reais ($624 million).
- Net revenue rose 2% year-on-year to 17.9 billion reais ($3.49 billion).
- Steel shipments increased 3% from a year earlier to 2.9 million metric tons.
- North America remained Gerdau's main earnings driver, supported by strong demand from renewable energy, data center and manufacturing customers, as well as productivity gains and high capacity utilization rates.
- The company said it maintained solid cash generation during the quarter, investing 1 billion reais ($195 million) in capital expenditures, approving dividends of 0.23 real per share and continuing its share buyback program.
($1 = 5.1242 reais)
