Siderurgica Venezolana SA announced consolidated earnings results for the first quarter ended December 31, 2011. For the quarter, the company reported net sales of VEB 529,737,000 against VEB 405,332,000 for the same period a year ago. Operating income was VEB 39,398,000 against VEB 3,742,000 for the same period a year ago. This positive variation of VEB 35.6 million over the quarter October-December 2010, is mainly due to: (i) an increase in gross income due to the increase on sales on the quarter ended on 31 December 2011, (ii) a positive variation in the item other income (expense), net due to the loss in fixed assets sale registered during the quarter ended on December 31, 2010 and the increase of commercial product sales revenues net of IBH during the quarter ended on December 31, 2011 and, (iii) the reduction of overhead and administration expenses in the quarter October-December 2011 compared to same period of 2010. Income before tax and minority interests in subsidiaries was VEB 20,434,000 against loss before tax and minority interests in subsidiaries of VEB 61,858,000 for the same period a year ago. The positive variation of VEB 82.2 million is primarily due to: (i) the increase in operating income, the favorable variations of VEB 39.9 million for the item exchange gain, net mainly because there was no net exchange loss for the quarter October-December 2011, the decrease of VEB 5.3 million under monetary loss for the effect of inflation on the net monetary position held by Sivensa and its subsidiaries for the quarters ended December 31, 2011 and 2010. Net income was VEB 4,064,000 against net loss of VEB 25,002,000 for the same period a year ago. The positive variation of VEB 29.1 million is due primarily to increased operating income obtained during the first quarter of fiscal year 2012, compared to the result obtained in the same quarter of previous fiscal year.