Siderúrgica Venezolana SIVENSA SA reported consolidated earnings results for the second quarter and six months ended March 31, 2014. For the quarter, the company's operating income was VEF 6.07 million compared to a loss of VEF 41.94 million in the same quarter of 2013. The positive variation of VEF 48.01 million is mainly due to the decrease in general and administrative expenses in Bs. 35.20 million and to the increase in "Other operating income, net" in VEF 12.82 million the latter mainly due to the commercialization of products aimed at the industrial sector as well as consulting revenue. Loss before taxes was VEF 22.45 million compared to a loss of VEF 181.32 million in the same period last year. The decrease in the loss of VEF 158.87 million is mainly explained by the positive variation of income from operations for the quarter mentioned in the previous paragraph, and the decrease of VEF 111.48 million net loss on exchange due to the exchange differences resulted primarily from fluctuations of the bolivar against the dollar when translating into foreign currency the balances of Sivensa and its subsidiaries as of March 31, 2014 and 2013, applying the exchange rates according to the exchange rate agreements No. 14, No.22 and No.27. Net loss from continuing operations was VEF 22.40 million compared to a loss of VEF 184.54 million in the same quarter last fiscal year. The decrease in the loss of VEF 162.14 million during the quarter is mainly due to the decrease in pre-tax loss. Net loss attributable to the company's shareholders was VEF 22.41 million compared to VEF 187.98 million recorded in the same quarter last year. This positive variation of VEF 165.57 million is mainly explained because is mainly due to the decrease in loss before tax reported during the quarter compared to the same quarter of 2013. The net loss for the quarter attributable to the shareholders of the company includes the results from continuing and discontinued operations of Sivensa and its subsidiaries, mainly after the participation of the 31.46% of the minority shareholders of IBH in the net results of the subsidiary for the quarters ended March 31, 2014 and 2013. In those quarters, this participation was a gain of VEF 0.003 million and a loss of VEF 1.98 million, respectively. Net loss attributable to the company's shareholders from continuing operations was VEF 22.41 million compared to VEF 182.98 million recorded in the same quarter last year. Return over assets was a negative of 0.18% compared to negative return over assets of 1.88% reported a year ago. Return over equity was a negative of 0.28% compared to negative return over equity of 2.79% reported a year ago.

For the six months, the company reported operating loss of VEF 5.6 million compared to VEF 57.09 million reported a year ago. Loss before income tax was VEF 50.14 million compared to VEF 234.85 million reported a year ago. Net loss from continued operations was VEF 50.08 million compared to VEF 238.09 million reported a year ago. Net loss attributable to the company's shareholders was VEF 48.16 million compared to VEF 132.41 million recorded in the same quarter last year. Net loss attributable to the company's shareholders from continuing operations was VEF 48.16 million compared to VEF 233.86 million recorded in the same quarter last year.