Improvements in domestic and international markets, exchange rate and management's efforts leverage Gerdau's performance in quarter
Net sales: R$ 12.8 billion (+35%)
EBITDA: R$ 2 billion (+73%)
Adjusted net income: R$ 1 billion (6x higher) Focus on priorities:
- Higher profitability and competitiveness
3Q18 Highlights
- Best quarterly EBITDA of last 10 years
- Double-digit margin in North America long steel operation
- Austerity in CAPEX
- SG&A expenses fall to lowest level ever
- Growth in positive free cash flow
- Indebtedness
- Net debt/EBITDA: 2.2x in 3Q18, not yet considering conclusion of sale of U.S. rebar units
Announcement of sale of operation in India Conclusion of sale of rebar units in United States Incorporation of new company Juntos Somos +
Brazil
- Positive outlook for economic growth in 2019
- Recovery of industrial sector, gradual increase in real estate launches, investments in oil & gas and launch of urban mobility works
- Pressure from raw material and input costs should continue in 2019
International market
- Prices in 2019 should stay at current levels, but trade tensions remain a point of concern
Positive outlook for 2019
North America
- Good economic performance expected to continue in 2019
- Low unemployment
- Section 232 continuity
- High utilization rate
- Infrastructure investments
Special Steel (Brazil & United States)
- Brazil: auto industry post moderate growth
- United States: favorable outlook for auto, oil & gas industries and construction equipments
South America (except Brazil)
- Positive outlook for regional economy, led by Peru.
CAPEX 3Q18
By business operation
Investments in 3Q18 reach R$ 319 million
Brazil
North America
South America
Special Steel
Financial Results
Gerdau S.A. Consolidated - IFRS
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Gerdau SA published this content on 07 November 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 07 November 2018 15:42:04 UTC