Public Information - Belo Horizonte, October 29, 2020. Usinas Siderúrgicas de Minas Gerais SA - Usiminas (B3: USIM3, USIM5
and USIM6; OTC: USDMY and USNZY; Latibex: XUSIO and XUSI) today releases its third quarter 2020 results (3Q20). The Company's operating and financial information, except where otherwise stated, is presented based on consolidated figures in Brazilian Real, according to IFRS (International Financial Reporting Standards). The comparisons made in this release take into account the second quarter of 2020 (2Q20), unless stated otherwise.
RELEASE OF THE
3Q20 RESULTS
Highlights
- Steel sales volume of 934 thousand tons (+54% vs. 2Q20);
- Iron ore sales volume of 2.3 million tons (+21% vs. 2Q20);
- Net revenue of R$4.4 billion (+81% vs. 2Q20);
- Adjusted EBITDA of R$826 million (+331% vs. 2Q20);
- Cash of R$3.7 billion (+49% vs. 2Q20);
- Net Income of R$198 million (+R$593 million vs. 2Q20).
Operational and economic-financial performance | |||||||||
R$ million - Consolidated | Change | Change | |||||||
3Q20 | 2Q20 | 3Q19 | 3Q20/2Q20 | 3Q20/3Q19 | 9M20 | 9M19 | 9M20/9M19 | ||
Steel Sales Volume (000 t) | 934 | 608 | 1,033 | 54% | -10% | 2,590 | 3,095 | -16% | |
Iron Ore Sales Volume (000 t) | 2,293 | 1,902 | 2,453 | 21% | -7% | 6,408 | 6,121 | 5% | |
Net Revenue | 4,381 | 2,425 | 3,850 | 81% | 14% | 10,614 | 11,076 | -4% | |
COGS | (3,489) | (2,146) | (3,374) | 63% | 3% | (8,930) | (9,498) | -6% | |
Gross Profit (Loss) | 892 | 279 | 476 | 220% | 87% | 1,684 | 1,578 | 7% | |
Net Income (Loss) | 198 | (395) | (139) | - | - | (621) | 109 | - | |
EBITDA (Instruction CVM 527) | 820 | 208 | 453 | 294% | 81% | 1,567 | 1,497 | 5% | |
EBITDA Margin (Instruction CVM 527) | 19% | 9% | 12% | + 10 p.p. | + 7 p.p. | 15% | 14% | + 1 p.p. | |
Adjusted EBITDA | 826 | 192 | 441 | 331% | 87% | 1,587 | 1,505 | 5% | |
Adjusted EBITDA Margin | 19% | 8% | 11% | + 11 p.p. | + 7 p.p. | 15% | 14% | + 1 p.p. | |
Investments (CAPEX) | 179 | 193 | 140 | -7% | 28% | 554 | 334 | 66% | |
Cash and Cash Equivalents | 3,734 | 2,506 | 1,822 | 49% | 105% | 3,734 | 1,822 | 105% |
MARKET DATA│ 09/30/20 | INDEX | |||
B3: | USIM5 | R$10.03/share | • | Context |
USIM3 | R$10.24/share | • | Consolidated Results | |
• | Performance of the Business Units | |||
EUA/OTC: | USNZY | US$1.73/ADR | • | Others |
• | ESG | |||
LATIBEX: | XUSI | €1.67/share | • | Capital Markets |
XUSIO | €1.75/share | • | Balance Sheet, Income and Cash Flow Statements | |
3Q20 Results | 1 |
OPERATIONAL CONTEXT
Dissemination of the novel coronavirus (COVID-19)
Since 1st quarter 2020, Brazil and the world have been undergoing a serious health crisis with the pandemic triggered by the spread of the novel coronavirus (COVID-19), which has impacted economic activity and society in general. The Company, together with the São Francisco Xavier Foundation (FSFX), its social arm in the areas of health and education, has been implementing actions that primarily aim to protect its employees and business partners, as well as the communities where the Company operates, some actions of which are being implemented in partnership with public authorities.
During the nine-month period ended on 09/30/20, Management has adopted certain measures for Usiminas Companies, with the objective of minimizing the economic effects of the crisis. Among these measures, we highlight the concession of collective vacations, the adoption of teleworking (home-office) for employees in administrative departments, temporary suspension of employment contracts and reduction of working hours (the latter two measures in accordance with Provisional Measure No. 936/2020).
In 2nd quarter 2020, the Company's Board of Directors approved the temporary shutdown of Blast Furnaces 1 and 2 at the Ipatinga plant, starting on April 22 and 4, respectively, with the consequent interruption of Steel Shop 1 operations of this same plant, it also approved the temporary shutdown of the Cubatão plant's activities. These measures were aimed at adapting production to market demand, which had declined due to the retraction of national economic activity caused by the spread of COVID-19.
However, due to the expected recovery in demand levels in the consumer markets for flat steel, on 08/26/20 the Company restarted Blast Furnace 1 and resumed production at Steel Shop 1, both at the Ipatinga plant, as well as resuming rolling activities at the Cubatão plant.
The Company will continue to dedicate efforts to face this serious crisis.
Economic Outlook
In Brazil, the second half of the year started with indicators recovering in several sectors. In August, according to the Brazilian Institute of Geography and Statistics (IBGE), industrial activity grew for the 4th consecutive month, reversing part of the decline registered in March and April. Between January and August, the 8.6% contraction compared to the same period in 2019 was driven by the Durable Consumer Goods and Capital Goods segments, where production shrank 30% and 20%, respectively, compared to previous year. Among the main activities, vehicle production exerted the greatest negative influence on the formation of the industry average.
The Association of Auto Manufacturers (ANFAVEA) announced that 1.3 million units were produced by September 2020 and 601.4 thousand units in the third quarter, variations of -41% and -20%, respectively, compared to the same period in the previous year. The entity's expectation is that vehicle production this year will be 35% lower than in 2019. With the positive reaction of consumers and the supply chain adapting to the new health protocols, the scenario is promising for the production of vehicles, but the recovery will take place gradually.
The Industrial Business Confidence Index (ICEI) of the National Confederation of Industry (CNI) reached the historic low in April, at the height of the crisis. Since then the index has shown consecutive increases to the level of 61.8 points reached in October. The latest surveys showed an improvement in the assessment of current conditions and entrepreneurs expectations. The Steel Industry Confidence Indicator (ICIA) published by the Brazilian Steel Institute in September also captured a better perception of the current business environment and the next six months.
3Q20 Results | 2 |
Although the dynamism of economic activity is still far from the pre-crisis level, the good recent results are encouraging for the industrial segment. However, the risk of a second wave of infection persists, which could lead to new measures to control the spread of COVID-19. Another focal point, no less importantly, is linked to the country's fiscal framework, which may limit government support measures to more vulnerable families and companies and contain investments, making it more difficult to resume activity more consistently in the short term.
OPERATING AND ECONOMIC-FINANCIAL
PERFORMANCE
CONSOLIDATED RESULTS
Net Revenue
Net revenue in the 3Q20 was R$4.4 billion, 80.7% higher than in the 2Q20 (R$2.4 billion). This increase is mainly due to better results in the Steel, Mining and Steel Processing Units.
Net Revenue Breakdown
3Q20 | 2Q20 | 3Q19 | |
Domestic Market | 70% | 63% | 84% |
Exports | 30% | 37% | 16% |
Total | 100% | 100% | 100% |
9M20 9M19
71%83%
29%17%
100% 100%
For detailed information, see the Business Unit sections of this release.
Cost of Goods Sold - COGS
The cost of goods sold (COGS) in the 3Q20 totaled R$3.5 billion, an increase of 62.6% compared to the 2Q20 (R$2.1 billion) mainly associated with the higher sales volume in the period in the Steel, Mining and Steel Processing Units.
For detailed information, see the Business Unit sections of this release.
Gross profit
Gross profit was R$892 million in the 3Q20, 219.7% higher than in the 2Q20 (R$279 million). The gross margin is shown below:
Gross Margin | |||||
3Q20 | 2Q20 | 3Q19 | 9M20 | 9M19 | |
20.4% | 11.5% | 12.4% | 15.9% | 14.2% | |
3Q20 Results | 3 |
Operating Income (Expenses)
Selling expenses in the 3Q20 were R$96 million, 9.2% lower than in the previous quarter (2Q20: R$106 million). This variation results mainly from the recording of a provision for doubtful accounts of R$19 million in the 2Q20. This event did not recur in the 3Q20.
In the 3Q20, General and administrative expenses totaled R$98 million, stable compared to the previous quarter (2Q20: R$97 million).
Other net operating income (expenses) showed stability in the 3Q20, totaling a negative R$166 million (2Q20: negative R$164 million).
Thus, Net operating income (expenses) were a negative R$360 million in the 3Q20 (2Q20: negative R$367 million).
The Company's operating margin presented the following performance:
EBIT Margin | |||||
3Q20 | 2Q20 | 3Q19 | 9M20 | 9M19 | |
12.2% | -3.6% | 3.8% | 6.8% | 5.6% | |
Adjusted EBITDA
Adjusted EBITDA is calculated from net income (loss), reversing: (a) income tax and social contribution;
- financial result; (c) depreciation, amortization and depletion; (d) equity in the results of Jointly- controlled and Associate Companies; (e) impairment of assets; and including the proportional share of the EBITDA of 70% of Unigal and other Jointly-controlled companies.
EBITDA Breakdown
Consolidated (R$ thousand) | 3Q20 | 2Q20 | 3Q19 | 9M20 | 9M19 | ||
Net Income (Loss) | 198,082 | (395,061) | (138,980) | (620,959) | 108,544 | ||
Income Tax / Social Contribution | 205,597 | 71,568 | (106,514) | 134,037 | (11,461) | ||
Financial Result | 167,817 | 281,456 | 444,734 | 1,306,904 | 664,272 | ||
Depreciation, Amortization and depletion | 248,466 | 250,243 | 253,663 | 747,414 | 735,603 |
EBITDA - Instruction CVM - 527
Equity in the Results of Associate and Jointly- controlled subsidiaries
Jointly-controlled subsidiaries proportional
EBITDA
Impairment of Assets
Adjusted EBITDA
Adjusted EBITDA Margin
819,962 | 208,206 | 452,903 | 1,567,396 | 1,496,958 |
(40,031) | (45,494) | (58,258) | (100,872) | (132,628) |
39,298 | 28,927 | 46,524 | 113,285 | 140,233 |
6,751 | - | - | 6,751 | - |
825,980 | 191,639 | 441,169 | 1,586,560 | 1,504,563 |
18.9% | 7.9% | 11.5% | 14.9% | 13.6% |
Adjusted EBITDA reached R$826 million in the 3Q20, a 331.0% increase compared to the 2Q20 (R$192 million). This increase is mainly due to the better results in the Steel, Mining and Steel Processing Units in the quarter.
For detailed information, see the Business Unit sections of this release.
3Q20 Results | 4 |
Financial result
The financial result in the 3Q20 was a negative R$168 million, a 40.4% decrease compared to the 2Q20 (negative R$281 million), mainly due to lower exchange losses of R$72 million in the period.
Financial Result - Consolidated
R$ thousand | Change | |||||
3Q20 | 2Q20 | 3Q19 | 3Q20/2Q20 | 3Q20/3Q19 | ||
Net Currency Exchange Variation | (102,099) | (174,119) | (286,254) | -41% | -64% | |
Financial Income | 57,014 | 68,329 | 203,960 | -17% | -72% | |
Interest on Financial Asset and Monetary Effects | 12,096 | 24,413 | 26,424 | -50% | -54% | |
Monetary Effects on ICMS tax in the base calculation of PIS | 1,493 | 3,223 | 57,053 | -54% | -97% | |
and COFINS | ||||||
Monetary Effects on assets | 2,747 | 25,520 | 5,783 | -89% | -52% | |
Reversal of interest on contingencies | 8,312 | 4,683 | 14,542 | 77% | -43% | |
Monetary Effects on receivable from Eletrobrás | 5,686 | - | 75,380 | - | -92% | |
Other Financial Income | 26,680 | 10,490 | 24,778 | 154% | 8% | |
Financial Expenses | (122,732) | (175,666) | (362,440) | -30% | -66% | |
Interest and Monetary Effects over Financing and Taxes | (78,351) | (86,862) | (124,482) | -10% | -37% | |
Payable in Installments | ||||||
Swap Transactions Market Cap. | (349) | 1,443 | (4,992) | - | -93% | |
Monetary Effects on liabilities | (2,609) | (25,947) | (3,106) | -90% | -16% | |
Financing Commision and Others | (8,389) | (3,424) | (73,515) | 145% | -89% | |
Monetary Effects on contigencies | (13,212) | (33,430) | (114,365) | -60% | -88% | |
Other Financial Expenses | (19,822) | (27,446) | (41,980) | -28% | -53% | |
FINANCIAL RESULT | (167,817) | (281,456) | (444,734) | -40% | -62% | |
+ Appreciation / - Depreciation of Exchange | Rate | -3.0% | -5.3% | -8.7% | + 2.3 p.p. | + 5.7 p.p. |
(R$/US$) | ||||||
Change | ||
9M20 | 9M19 | 9M20/9M19 |
(1,050,876) | (280,588) | 275% |
183,097 | 361,571 | -49% |
53,678 | 70,671 | -24% |
9,111 | 64,374 | -86% |
35,243 | 17,829 | 98% |
22,559 | 54,007 | -58% |
5,686 | 75,380 | -92% |
56,820 | 79,310 | -28% |
(439,125) | (745,255) | -41% |
(254,911) | (368,831) | -31% |
1,532 | (2,191) | - |
(32,588) | (8,261) | 294% |
(21,831) | (84,093) | -74% |
(62,068) | (160,859) | -61% |
(69,259) | (121,020) | -43% |
(1,306,904) | (664,272) | 97% |
-39.9% | -7.5% | - 32.5 p.p. |
Equity in the Results
Equity in the results of associates and jointly-controlled companies totaled R$40 million in the 3Q20, compared to R$45 million in the previous quarter, mainly due to the lower performance presented by Codeme, partially offset by the better result at Unigal.
Net Profit (Loss)
In 3Q20, the Company recorded net income of R$198 million (2Q20: loss of R$395 million).
Working capital
In the 3Q20, working capital totaled R$3.1 billion, 25.9% less compared to the 2Q20 (R$4.1 billion). The main changes in working capital are related to the economic recovery. They are presented below:
- Increase in the balance of Suppliers by R$555 million, linked to the greater acquisition of slabs and raw materials to supply the resumption of production levels, increase in Accounts receivable of R$572 million and a reduction in Inventories by R$366 million, associated with the resumption of demand for steel products;
- Reduction in Other assets due to the receipt of R$306 million related to the Compulsory Loan from Eletrobras (seenoteEletrobras Compulsory Loan).
3Q20 Results | 5 |
Investments (CAPEX)
CAPEX in the 3Q20 totaled R$179 million, 7.3% lower compared to the 2Q20 (R$193 million). The investments were mainly applied in sustaining CAPEX, safety and environment, with 70.6% at the Steel Unit, 26.6% at the Mining Unit, 2.1% at the Steel Processing Unit and 0.7% at the Capital Goods Unit.
Financial Indebtedness
On 09/30/20, the Gross consolidated debt was R$6.3 billion, stable compared to the position on 06/30/20 (R$6.2 billion). In this quarter, devaluation of the Real against the Dollar by 3.0% and the provision for charges was partially offset by the amortization of debt interest in the amount of R$173 million.
Net consolidated debt on 9/30/20 was R$2.5 billion, 32.0% lower than on 06/30/20 (R$3.7 billion). Such variation results mainly from the increase in the Cash and Cash Equivalents position by 49.0% in the period.
As for the debt composition by maturity, on 9/30/20 it was 1% short term and 99% long term, compared to 3% and 97%, respectively, on 6/30/20.
The Net debt/EBITDA ratio ended the 3Q20 at 1.2x (2Q20: 2.2x). The following table shows consolidated debt data:
Total Indebtedness by Index - Consolidated
R$ thousand | 30-Sep-20 | % | 30-Jun-20 | Change | 30-Sep-19 | Change | ||||
Short Term | Long Term | TOTAL | TOTAL | Set20/Jun20 | TOTAL | Set20/Set19 | ||||
Local Currency | 18,926 | 2,029,074 | 2,048,000 | 33% | 2,071,651 | -1% | 2,772,978 | -26% | ||
CDI | 7 | 1,984,392 | 1,984,399 | - | 2,008,142 | -1% | 2,734,776 | -27% | ||
Others | 18,919 | 44,682 | 63,601 | - | 63,509 | 0% | 38,202 | 66% | ||
Foreign Currency* | 52,871 | 4,162,929 | 4,215,800 | 67% | 4,152,046 | 2% | 3,081,776 | 37% | ||
Gross Debt | 71,797 | 6,192,003 | 6,263,800 | 100% | 6,223,697 | 1% | 5,854,754 | 7% | ||
Cash and Cash Equivalents | - | - | 3,734,302 | - | 2,506,214 | 49% | 1,822,413 | 105% | ||
Net Debt | - | - | 2,529,498 | - | 3,717,483 | -32% | 4,032,341 | -37% |
(*)100% of total foreign currency is US dollars denominated in the 3Q20
The graph below shows the cash position and the debt profile (principal only) in millions of Real on 09/30/20.
Duration: R$: | 43 months | 4,2312 | |||||
3,734 | |||||||
US$: 60 months | |||||||
359 | |||||||
4,231 | |||||||
3,375 | |||||||
7101 | 1 | 6591 | |||||
- | 660 | - | |||||
3 | 13 | 13 | - | ||||
710 | 660 | 659 | |||||
- | - | - | |||||
- | |||||||
Cash | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
Local Currency | Foreign Currency |
- Debentures
- Bonds
3Q20 Results | 6 |
PERFORMANCE OF BUSINESS UNITS
The transactions between the Company and its subsidiaries are calculated on market prices and conditions and the sales between Business Units are carried out as sales between independent parties.
Usiminas - Business Units | |||||||||||||
Mining | Steel | Steel Processing | Capital Goods | ||||||||||
Mineração Usiminas | Ipatinga Mill | Soluções Usiminas | Usiminas Mecânica | ||||||||||
Cubatão Mill | |||||||||||||
Unigal | |||||||||||||
Income Statement per Business Units - Non Audited - Quarterly | |||||||||||||
R$ million | Mining | Steel* | Steel | Capital Goods | Adjustment | Consolidated | |||||||
Processing | |||||||||||||
3Q20 | 2Q20 | 3Q20 | 2Q20 | 3Q20 | 2Q20 | 3Q20 | 2Q20 | 3Q20 | 2Q20 | 3Q20 | 2Q20 | ||
Net Revenue | 1,118.1 | 745.9 | 3,042.5 | 1,881.8 | 1,065.7 | 498.1 | 30.8 | 42.9 | (875.9) | (744.0) | 4,381.2 | 2,424.7 | |
Domestic Market | 227.7 | 147.4 | 2,630.7 | 1,591.8 | 1,064.9 | 497.0 | 30.8 | 42.9 | (875.9) | (744.0) | 3,078.1 | 1,535.1 | |
Exports | 890.5 | 598.6 | 411.8 | 290.0 | 0.8 | 1.1 | - | - | - | - | 1,303.1 | 889.6 | |
COGS | (424.6) | (326.3) | (2,863.4) | (1,966.8) | (989.0) | (487.8) | (71.8) | (79.4) | 859.5 | 714.5 | (3,489.3) | (2,145.7) | |
Gross Profit (Loss) | 693.6 | 419.7 | 179.1 | (85.0) | 76.7 | 10.3 | (41.1) | (36.6) | (16.4) | (29.4) | 891.9 | 279.0 | |
Operating Income (Expenses) | (84.3) | (74.9) | (236.9) | (232.7) | (23.2) | (28.3) | (17.3) | (30.8) | 1.3 | 0.2 | (360.4) | (366.5) | |
Selling | (51.4) | (43.3) | (29.2) | (46.2) | (10.8) | (11.6) | (3.6) | (3.6) | (1.2) | (1.2) | (96.2) | (105.9) | |
General and Administrative | (6.8) | (6.8) | (77.3) | (76.6) | (12.2) | (11.6) | (6.1) | (5.6) | 4.2 | 3.7 | (98.2) | (96.8) | |
Other Operating Income | (26.2) | (24.8) | (130.4) | (109.9) | (0.1) | (5.1) | (7.6) | (21.6) | (1.7) | (2.4) | (166.0) | (163.7) | |
(expenses), Net | |||||||||||||
EBIT | 609.2 | 344.8 | (57.8) | (317.7) | 53.5 | (18.0) | (58.4) | (67.4) | (15.1) | (29.3) | 531.5 | (87.5) | |
Depreciation and amortization | 35.2 | 35.7 | 214.4 | 215.6 | 7.1 | 7.1 | - | - | (8.3) | (8.2) | 248.5 | 250.2 | |
Equity in the results of investees | 19.5 | 17.7 | 259.5 | 92.6 | - | - | (0.0) | (0.0) | (239.0) | (64.8) | 40.0 | 45.5 | |
EBITDA (Instruction CVM 527) | 664.0 | 398.1 | 416.1 | (9.4) | 60.6 | (10.8) | (58.4) | (67.4) | (262.3) | (102.3) | 820.0 | 208.2 | |
EBITDA Margin | 59.4% | 53.4% | 13.7% | -0.5% | 5.7% -2.2%-189.9% | -157.1% | 30.0% | 13.8% | 18.7% | 8.6% | |||
Adjusted EBITDA | 644.5 | 380.5 | 156.6 | (102.1) | 60.6 | (10.8) | (51.6) | (67.4) | 15.9 | (8.6) | 826.0 | 191.6 | |
Adj.EBITDA Margin | 57.6% | 51.0% | 5.1% | -5.4% | 5.7% | -2.2%-167.8% | -157.1% | -1.8% | 1.2% | 18.9% | 7.9% | ||
*Consolidated 70% of Unigal | |||||||||||||
Income Statement per Business Units - Non Audited - Nine Months Ended | |||||||||||||
R$ million | Mining | Steel* | Steel Processing | Capital Goods | Adjustment | Consolidated | |||||||
9M20 | 9M19 | 9M20 | 9M19 | 9M20 | 9M19 | 9M20 | 9M19 | 9M20 | 9M19 | 9M20 | 9M19 | ||
Net Revenue | 2,445.5 | 1,414.2 | 8,172.8 | 9,659.5 | 2,465.2 | 2,794.0 | 188.4 | 286.2 | (2,658.2) | (3,078.0) | 10,613.8 | 11,075.8 | |
Domestic Market | 524.7 | 489.8 | 7,060.2 | 8,720.5 | 2,463.1 | 2,793.7 | 188.4 | 286.2 | (2,658.2) | (3,078.0) | 7,578.1 | 9,212.2 | |
Exports | 1,920.9 | 924.3 | 1,112.6 | 939.0 | 2.2 | 0.3 | - | - | - | - | 3,035.7 | 1,863.6 | |
COGS | (1,086.2) | (773.7) | (7,789.1) | (8,749.3) | (2,329.5) | (2,656.0) | (270.3) | (257.6) | 2,545.0 | 2,939.0 | (8,930.1) | (9,497.5) | |
Gross Profit (Loss) | 1,359.4 | 640.4 | 383.7 | 910.2 | 135.7 | 138.0 | (81.9) | 28.6 | (113.2) | (139.0) | 1,683.7 | 1,578.3 | |
Operating Income (Expenses) | (227.1) | (203.9) | (602.8) | (637.2) | (82.8) | (73.6) | (54.2) | (34.9) | 2.2 | 0.0 | (964.6) | (949.6) | |
Selling | (138.1) | (79.4) | (114.9) | (84.8) | (35.4) | (34.9) | (9.9) | (9.8) | (3.7) | (3.3) | (302.0) | (212.1) | |
General and Administrative | (19.3) | (18.8) | (241.3) | (237.8) | (37.6) | (43.4) | (17.8) | (19.4) | 11.5 | 11.0 | (304.4) | (308.5) | |
Other Operating Income (expenses), | (69.8) | (105.8) | (246.6) | (314.5) | (9.8) | 4.7 | (26.5) | (5.8) | (5.6) | (7.6) | (358.2) | (429.0) | |
Net | |||||||||||||
EBIT | 1,132.2 | 436.5 | (219.1) | 273.1 | 53.0 | 64.4 | (136.1) | (6.3) | (110.9) | (138.9) | 719.1 | 628.7 | |
Depreciation and amortization | 106.7 | 94.5 | 644.0 | 644.8 | 21.4 | 21.9 | - | - | (24.7) | (25.7) | 747.4 | 735.6 | |
Equity in the results of investees | 28.7 | 54.5 | 464.9 | 251.1 | - | - | (0.1) | (0.0) | (392.7) | (172.9) | 100.9 | 132.6 | |
EBITDA (Instruction CVM 527) | 1,267.7 | 585.6 | 889.9 | 1,168.9 | 74.3 | 86.3 | (136.1) | (6.4) | (528.4) | (337.5) | 1,567.4 | 1,497.0 | |
EBITDA Margin | 51.8% | 41.4% | 10.9% | 12.1% | 3.0% | 3.1% | -72.3% | -2.2% | 19.9% | 11.0% | 14.8% | 13.5% | |
Adjusted EBITDA | 1,239.0 | 531.1 | 425.0 | 917.9 | 74.3 | 86.3 | (129.3) | (6.3) | (22.4) | (24.4) | 1,586.6 | 1,504.6 | |
Adj.EBITDA Margin | 50.7% | 37.6% | 5.2% | 9.5% | 3.0% | 3.1% | -68.7% | -2.2% | 0.8% | 0.8% | 14.9% | 13.6% | |
*Consolidated 70% of Unigal |
3Q20 Results | 7 |
MINING
In the 3Q20, the average reference price for iron ore of 62% Fe was US$118.21/t, 26.8% higher compared to the previous quarter (2Q20: US$93.30/t).
The adoption of stimulus packages in China, especially for new investments in infrastructure, generated positive impacts on the Chinese economy in the third quarter. Chinese steelmakers set a new monthly record for crude steel production in August, reaching 94.8 Mt, a volume 8.4% higher than the same period last year. In the year through August, crude steel production in China increased by 3.7% compared to 2019, totaling 688.9 Mt, reaching an annual pace of over 1 billion tons (source: National Bureau of Statistics of China and WSA).
In this scenario of strong recovery in Chinese demand, the drop in Australian iron ore exports - due to scheduled maintenance at the ports after the end of its fiscal year - led to a limited supply of ore in the market and, consequently, higher prices throughout the quarter.
The spread between the price of 65% Fe ore and 62% Fe was traded at $10.68/t in the 3Q20, a 28.9% drop from the $15.02/t average in the 2Q20. With the reduction in the supply of 62% Fe ore, there was a strong appreciation of this index, which also caused the spread to fall significantly compared to the previous quarter.
The value of ocean freight, on the other hand, accumulated an increase of 49.8% over the 3Q20 compared to the 2Q20. The average rate for Capesize vessels for the route between Tubarão and Qingdao was negotiated at US$17.86/t against US$11.92/t in the 2Q20, driven by the strong resumption of Brazilian export volumes and the impact of congestion in ports and availability of ships.
Operating and Sales Performance - Mining
In the 3Q20, production volume was 2.3 million tons, an increase of 15.1% compared to the 2Q20 (2.0 million tons), mainly due to the higher operational performance and the resumption of production levels, after a scheduled stop, occurred in the previous quarter, at one of the beneficiation plants.
Sales volume was 2.3 million tons in the 3Q20, 20.6% higher than in the 2Q20 (1.9 million tons). This increase reflects the higher demand for iron ore in foreign and domestic markets and the higher sales volumes.
The production and sales volumes are shown below:
Iron Ore | |||||
Change | |||||
Thousand tons | 3Q20 | 2Q20 | 3Q19 | 3Q20/2Q20 | 3Q20/3Q19 |
Production | 2,319 | 2,015 | 2,260 | 15% | 3% |
Total Sales | 2,293 | 1,902 | 2,453 | 21% | -7% |
Exports | 1,558 | 1,346 | 1,373 | 16% | 13% |
Domestic Market - Usiminas | 538 | 432 | 480 | 24% | 12% |
Domestic Market - Third Parties | 197 | 124 | 600 | 59% | -67% |
Change | ||
9M20 | 9M19 | 9M20/9M19 |
6,493 | 5,345 | 21% |
6,408 | 6,121 | 5% |
4,340 | 2,924 | 48% |
1,574 | 1,641 | -4% |
494 | 1,556 | -68% |
In the 3Q20, distribution by commercial condition was 89% of exports in the CFR (Cost and freight) modality and 11% FOB (Free On Board), compared to 79% and 21% in the 2Q20, respectively.
3Q20 Results | 8 |
Comments on the Business Unit Results - Mining
Net Revenue reached R$1.1 billion in the 3Q20, a 49.9% increase compared to the 2Q20 (R$746 million). This increase is mainly due to the increase in the iron ore price, higher sales volume and the appreciation of the Dollar against the Real in the quarter.
Cash cost of production per ton was R$66.7/t in the 3Q20 against R$74.4/t in the 2Q20. Excluding expenses with temporarily inactive beneficiation plants, cash cost was R$64.7/t in the 3Q20 (R$72.3/t in the 2Q20). This reduction mainly reflects greater dilution of fixed costs, associated with the higher volume produced, and the lower use of leased areas.
Cost of goods sold - COGS in the 3Q20 was R$425 million, 30.1% higher than in the previous quarter (2Q20: R$326 million), due to the sales volume increase in the period and higher international freight prices. In unit terms, COGS/t in the 3Q20 was R$185.0/t, a 7.9% increase in relation to the 2Q20 (R$171.4/t), mainly due to the increase in international freight prices, the greater participation of the CFR modality (89%) in export sales and higher costs linked to the dollar.
Adjusted EBITDA reached R$644 million in the 3Q20, with Mineração Usiminas reaching a new historic high in EBITDA in a quarter, representing a 69.4% increase compared to the 2Q20 (R$380 million). Adjusted EBITDA margin reached 57.6% in the 3Q20 (2Q20: 51.0%).
Investments (CAPEX)
CAPEX totaled R$48 million in the 3Q20, compared to R$50 million recorded in the 2Q20. The main investments were made in safety and sustaining CAPEX (with emphasis on the tailings disposal project "Dry Stacking").
STEEL
According to data from Brazilian Steel Institute, the Brazilian steel market absorbed the strong downturn in economic activity resulting from the implementation of measures to combat the COVID-19 pandemic. The positive result of the 1st quarter of 2020 was followed by a drop of 33% in flat and long steel products apparent consumption the 2nd quarter. In the period between January and August, consumption dropped 7.3% and the Institute projects a 4.7% drop at the year's end.
National consumption of flat rolled products reached 7.4 million tons between January and August, down 10.9% compared to the same period of the previous year. Even after four months of recovery, domestic sales of these products fell 11.0% year over year. Mills exported 1,1 million tons of finished flat products, 16.6% less than last year, while imports, down 9.8%, represented 11.7% of the year's apparent consumption.
According to the National Institute of Steel Distributors (INDA), in August, sales of flat steel in the distribution network increased for the fourth consecutive month. In the comparison of the first eight months of this year with the same period of the previous year, sales decreased by 1%, a result considerably better than that seen at the end of the 1st semester, when the decline was 10%. Inventories were at 763 thousand tons in August, with a turnover equivalent to 2.0 months of sales, based on the volume of the month. The projection for September is that sales of members will maintain the upward trend that started in May.
Production - Ipatinga and Cubatão plants
Crude steel production at the Ipatinga plant was 696 thousand tons in the 3Q20, 30.6% higher than in the 2Q20 (533 thousand tons) due to the return of equipment associated to the recovery of demand for steel products. The production of rolled products at the Ipatinga and Cubatão plants totaled 801 thousand tons in the 3Q20 (2Q20: 676 thousand tons), an 18.5% increase.
3Q20 Results | 9 |
In the 3Q20, 240 thousand tons of slabs acquired were processed (2Q20: 116 thousand tons).
Production of Crude and Rolled Steel
Change | ||||||
Thousand tons | 3Q20 | 2Q20 | 3Q19 | 3Q20/2Q20 | 3Q20/3Q19 | |
Total Crude Steel | 696 | 533 | 834 | 31% | -17% | |
Total Rolled Steel | 801 | 676 | 1,043 | 18% | -23% |
Change | ||
9M20 | 9M19 | 9M20/9M19 |
2,000 | 2,467 | -19% |
2,552 | 3,120 | -18% |
Sales
In the 3Q20, total sales reached 934 thousand tons of steel, a 53.6% increase in relation to the 2Q20 (608 thousand tons), due to the resumption of demand for steel products, reflecting the recovery of the economy. In the domestic market, sales were 801 thousand tons in the 3Q20, a 58.2% increase compared to the 2Q20 (506 thousand tons). Sales to the foreign market in the 3Q20 were 133 thousand tons, 30.8% higher than in the 2Q20 (102 thousand tons). Sales volume was 86% for the domestic market and 14% for exports.
The evolution of sales is shown in the graph below:
The main export destinations:
Others | Others | |||
4% | 10% | |||
Argentina | Europe | Asia | ||
16% | ||||
34% | 6% | |||
2Q20 | USA | 3Q20 | Europe | |
52% | ||||
USA | 7% | |
23% | Argentina | |
Asia | ||
25% | ||
23% | ||
3Q20 Results | 10 |
Comments on the Results of the Business Unit - Steelmaking
In the 3Q20, Net revenue of the Steel Unit was R$3.0 billion, increasing 61.7% in relation to 2Q20 (R$1.9 billion) mainly due to the higher sales volume, mix of products sold and higher prices.
Cash cost per ton was R$2,445/t in the 3Q20, 5.7% lower than in the 2Q20 (R$2,594/t). Among the main variations in cost per ton in the period, we highlight: (a) lower costs with coal, coke and energy, (b) greater dilution of fixed costs, partially offset by (c) higher cost with purchased slabs, due to the greater participation of this input in the production mix due to the resumption of activities at the Cubatão Plant and (d) higher iron ore cost in the period.
Cost of products sold - COGS was R$2.9 billion in the 3Q20, 45.6% higher than in the 2Q20 (R$2.0 billion), given the higher volume of steel sold in the period. COGS per ton was R$3,066/t in the 3Q20, a 5.2% decrease compared to the 2Q20 (R$3,235/t), mainly due to the lower unit production cost in the period.
Selling expenses totaled R$29 million in the 3Q20, down 36.9% compared to the 2Q20 (R$46 million). This variation results mainly from the recording of a provision for doubtful accounts in the 2Q20 in the amount of R$19 million. This event was non-recurrent in the 3Q20.
In the 3Q20, General and administrative expenses totaled R$77 million, in line with the result presented in the 2Q20 (R$77 million).
Other net operating income (expenses) were a negative R$130 million in the 3Q20, an
18.7% increase compared to the 2Q20 (negative R$110 million), mainly due to:
- Increase of R$27 million with Idle capacity, mainly due to the shutdown of equipment occurred in the 2Q20 (Stoppage of the Blast Furnaces 1 and 2 and the Steel Shop 1 of Ipatinga Plant, and stoppage of the Cubatão plant's activities). It is worth mentioning that these were events of temporary nature, and that in August 2020, the activities of the Blast Furnace 1, the Steel Shop 1 and the Cubatão plant were resumed. In the 3Q20, these expenses totaled R$111 million, compared to R$84 million in the 2Q20.
Thus, Adjusted EBITDA reached a positive R$157 million in the 3Q20, compared to a negative R$102 million in the previous quarter. The Adjusted EBITDA margin was positive by 5.1% in the 3Q20, compared to the negative margin of 5.4% in the 2Q20.
Investments (CAPEX)
CAPEX totaled R$126 million in 3Q20, a 9.5% decrease compared to the 2Q20 (R$139 million). Investments were mainly applied in sustaining CAPEX, safety and environment.
3Q20 Results | 11 |
STEEL PROCESSING
Usiminas Solutions - SU
Soluções em Aço Usiminas operates in the distribution market, steel transformation services and integrated logistics, offering its customers high value-added products. It currently has a processing capacity of around 1.7 million tons of steel per year in its own industrial units in operation, in addition to serving customers throughout the national territory.
Sales of the Distribution, Services/JIT and Tubes business units accounted for 34.9%, 58.1% and 7.0%, respectively, of the volume sold in the 3Q20.
Comments on Business Unit Results - Steel Transformation
Net revenue in the 3Q20 totaled R$1.1 billion, a 113.9% increase compared to the 2Q20 (R$498 million), due to higher sales volume by 90.3% and recovery of margins, caused by the resumption of demand in the period.
In the 3Q20, the Cost of goods sold was R$989 million, a 102.8% increase over the 2Q20 (R$488 million), mainly due to higher sales volume in the period. COGS/t was R$3,387/t in the 3Q20, a 7.8% increase compared to the 2Q20 (R$3,179/t), due to higher raw material costs in the period.
Net operating income (expenses) were a negative R$23 million in the 3Q20, a decrease of R$5 million compared to the 2Q20 (negative R$28 million).
Adjusted EBITDA in the 3Q20 was a positive R$61 million (2Q20: negative R$11 million), with Soluções Usiminas reaching its historic maximum EBITDA in one quarter. Adjusted EBITDA margin was 5.7% positive in the 3Q20 (2Q20: 2.2% negative).
CAPITAL GOODS
Usiminas Mecânica SA
Usiminas Mecânica operates in the segment of Metal Structures, Naval and Offshore, Oil and Gas, Industrial Equipment, Industrial Assemblies, Foundry and Railway Wagons.
Currently, the Company is going through a process of restructuring its activities, directing its efforts towards providing services to Usiminas companies and focusing on the Industrial Assembly sector.
The Company maintains its commitment to all clients that have projects in progress, which will be completed and delivered as agreed.
Comments on the Business Unit Results - Capital Goods
In the 3Q20, Net revenue was R$31 million, 28.3% lower than in the 2Q20 (R$43 million), reflecting the Company's strategy of restructuring the activities developed by the subsidiary Usiminas Mecânica SA. With the implementation of the restructuring, Usiminas Mecânica will maintain only activities related to the provision of services to Usiminas and its subsidiaries, except for the completion of external projects underway at the time.
The Capital Goods unit presented Gross loss of R$41 million in the 3Q20 (2Q20: gross loss of R$37 million).
Adjusted EBITDA 3Q20 was negative by R$52 million (2Q20: negative R$67 million).
3Q20 Results | 12 |
OTHER
Compulsory loan - Eletrobras
The Company is an active party in the process with a view to receiving the full amount collected by Usiminas, in its Cubatão and Ipatinga operations to Eletrobras as a compulsory loan, in accordance with the criteria of the prevailing law at the time of payment of the loan.
The lawsuit related to the Cubatão subsidiary, in which the Company seeks the amount of R$877 million, was declared final. On 09/01/20, the Company received from Eletrobras the undisputed monetary restatement amounting to R$312 million. The Company continues to plead in court the amount of R$574 million still not recognized, which it believes is due by Eletrobras.
The lawsuit related to the Ipatinga branch, in which the Company requested the amount of R$1.4 billion, was declared final. On 10/16/19, the Company received from Eletrobras the undisputed monetary restatement amounting to R$751 million. The Company continues to plead in court the amount of R$772 million, not recognized, which it believes is due by Eletrobras.
EGS - ENVIRONMENT, SOCIAL RESPONSIBILITY AND CORPORATE GOVERNANCE
Environmental monitoring | ODS |
Usiminas is the first steelmaker and one of the first Brazilian companies to install an innovative system for monitoring atmospheric emissions.
The equipment is part of the new model of environmental monitoring at the Ipatinga Plant, which started to be integrated through the creation of the Environmental Monitoring Center, on 09/15/20.
Thus, the Company starts to inspect atmospheric emissions and to monitor air quality and sedimentable particles in the same room.
Diversity and Inclusion | ODS |
The Usiminas Diversity and Inclusion Program was recognized by the World Steel Association as one of the 5 highlights in the Excellence in Sustainability category.
The Steelie Awards is the World Steel Association award that recognizes steelmakers worldwide for their contribution to the steel industry during the year, in several categories.
Innovation | ODS |
Usiminas was recognized, by the 100 Open Startups, as one of the companies that most promote open innovation in Brazil. The company is also in the ranking of the most innovative companies in the use of IT, an award offered by It Mídia in partnership with PWC.
3Q20 Results | 13 |
Safety | ODS |
To make the work of off-road truck operators even safer, Mineração Usiminas has implemented a Fatigue Detection System. Through a device installed in safety glasses, the stages of operator fatigue are checked.
Visual and audible alerts are emitted from the measurement results inside the truck and at the Monitoring Center.
Integrity Program | ODS |
In September, a team of 34 employees was selected to disseminate the culture of integrity at Usiminas. They will be a reference in their areas and will contribute to training, actions and engagement campaigns, meeting quarterly with the Integrity team. In addition, the Company held the Integrity Week, which included trainings, virtual live sessions and actions to promote Usiminas policies and codes, strengthening the culture that "doing the right thing always works."
For more details on Usiminas' sustainability actions, visit our Annual Sustainability Report.
Health and safety actions to face COVID-19
Since the beginning of the COVID-19 pandemic, in March 2020, Usiminas has been adjusting its operations to combat the spread effects of the novel coronavirus.
To face the pandemic and its consequences, the Company, through the São Francisco Xavier Foundation (FSFX), its social arm in the areas of health and education, has adopted several actions focused on our people, combined with the sustainability and continuity of its business. Below are some of the measures adopted:
- Following the recommendations of public authorities, employees, with compatible activities, as well as pregnant women, people with chronic diseases or those over 60 years of age are working from home office. For the teams that continue to work in the plants, a series of specific measures were adopted, such as temperature measurement at the entrance of the facilities, intensification of hygiene measures, adaptation of transport and restaurants at the workplace, for example.
- Donation of more than 170 thousand protective masks to employees, family members and communities and provision of disinfection services in public spaces with high circulation of people in Ipatinga and Cubatão.
- As a control measure, the Company implemented "Fala aí Saúde", a form aimed at the physical and emotional health of its employees and family members.
- Acquisition, through FSFX, of new ventilators, installation of an entire floor dedicated to COVID-19 patients at Márcio Cunha de Ipatinga Hospital, acquisition of new ICU beds and diverse equipment.
- Donation of 40 tons of food to socially vulnerable communities.
- Donation in cash and supplies to the Manoel Gonçalves de Sousa Moreira Casa de Caridade, through Mineração Usiminas.
- Usiminas has partnered with Senai to carry out the maintenance and repair of ventilators and 3D printers, which will be used by several hospitals in the country in the treatment of COVID-19 patients.
Usiminas, through FSFX, has already invested approximately R$27 million in initiatives to defeat COVID-19.
3Q20 Results | 14 |
CAPITAL MARKETS
Usiminas Performance Summary - B3 (USIM5)
3Q20 | 2Q20 | 3Q19 | 3Q20/2Q20 | 3Q20/3Q19 | |
Number of Deals | 1,281,569 | 1,311,492 | 805,392 | -2% | 59% |
Daily Average | 19,716 | 21,153 | 12,990 | -7% | 52% |
Traded - thousand shares | 1,377,760 | 1,254,902 | 699,247 | 10% | 97% |
Daily Average | 21,196 | 20,240 | 11,278 | 5% | 88% |
Financial Volume - R$ million | 12,725 | 10,573 | 6,156 | 20% | 107% |
Daily Average | 196 | 171 | 99 | 15% | 97% |
Maximum | 11.64 | 11.53 | 10.41 | 1% | 12% |
Minimum | 7.41 | 3.78 | 7.70 | 96% | -4% |
Closing | 10.03 | 4.92 | 8.94 | 104% | 12% |
Market Capitalization - R$ million | 12,568 | 6,165 | 11,203 | 104% | 12% |
Performance on the B3
Usiminas' common shares (USIM3) and preferred shares (USIM5) closed the 3Q20 quoted at R$10.24 and R$10.03, respectively. In the 3Q20, USIM3 and USIM5 appreciated 26.6% and 38.0%, respectively. In the same period, the Ibovespa depreciated 0.5%.
Foreign Stock Markets
OTC - New York
Usiminas has American Depositary Receipts (ADRs) traded on the over-the-counter market: USDMY is backed by common shares and USNZY, by preferred shares. On 09/30/20, USNZY ADRs, which have higher liquidity, were quoted at US$1.73, presenting an appreciation of 32.1% in the quarter.
Latibex - Madrid
Usiminas' shares are traded on the LATIBEX - the Madrid Stock Exchange: XUSI as preferred shares and XUSIO as common shares. On 09/30/20, XUSI closed quoted at €1.67, appreciating 40,3% in the quarter. XUSIO shares closed quoted at €1.75, presenting appreciation of 40.0% in the quarter.
3Q20 Results | 15 |
For further information:
INVESTOR RELATIONS DEPARTMENT
Leonardo Karam Rosa | leonardo.rosa@usiminas.com | 55 31 3499-8550 |
Danielle Ap. Maia | danielle.aparecida@usiminas.com | 55 31 3499-8148 |
Felipe Gabriel Pinheiro Rodrigues | f.gabriel@usiminas.com | 55 31 3499-8710 |
Press: please contact us by e-mail press@usiminas.com
Visit the siteInvestor Relations
or access on your mobile: m.usiminas.com/ri
3Q20 Conference Call Results - Date 10/29/2020
In Portuguese - Simultaneous Translation into English
Brasília time: at 11:00 a.m. | New York time: at 10:00 a.m. |
Dial-in Numbers: | Dial-in Numbers: |
Brazil: (+55 11) 3181-8565 / 4210 1803 | USA: +1 844 204 8942 |
Audio replay available at +55 (11) 3193 1012 | |
Pincode for replay: 4462273# - Portuguese | Pincode for replay: 4726229# - English |
Audio of the conference call will be transmitted live via Internet
See the slide presentation on our website: www.usiminas.com/ri
Statements contained in this release regarding business prospects, projections of operating and financial results and references to the Company's growth potential are mere forecasts, based on Management's expectations regarding its future performance. These expectations are highly dependent on market behavior, the economic situation in Brazil, the industry and international markets, therefore subject to change.
3Q20 Results | 16 |
APPENDIX
Balance Sheet - Assets - Consolidated | IFRS - R$ thousand | |||
Assets | 30-Sep-20 | 30-Jun-20 | 30-Sep-19 |
Current Assets | 10,391,300 | 9,437,248 | 9,752,525 |
Cash and Cash Equivalents | 3,734,302 | 2,506,214 | 1,822,413 |
Trade Accounts Receivable | 2,420,397 | 1,848,288 | 1,828,747 |
Taxes Recoverable | 518,548 | 684,922 | 928,499 |
Inventories | 3,580,494 | 3,945,562 | 4,240,414 |
Advances to suppliers | 2,863 | 1,777 | 7,136 |
Financial Instruments | 1,396 | 1,386 | 742 |
Accounts Receiv - Eletrobras | 0 | 305,848 | 751,404 |
Other Securities Receivables | 133,300 | 143,251 | 173,170 |
Non-Current Assets | 17,476,067 | 17,415,642 | 17,261,207 | |
Long-Term Receivable | 4,290,262 | 4,195,841 | 3,939,233 | |
Deferred Taxes | 3,064,609 | 3,038,934 | 2,923,766 | |
Deposits at Law | 548,298 | 562,216 | 535,375 | |
Accounts Receiv. Affiliated Companies | - | - | 1,574 | |
Taxes Recoverable | 173,788 | 154,997 | 124,199 | |
Financial Instruments | 7,069 | 7,429 | 6,475 | |
Accounts Receiv - Gasometer | 223,640 | 193,886 | 81,560 | |
Others | 272,858 | 238,379 | 266,284 | |
Equity Investments | 1,133,876 | 1,096,651 | 1,222,453 | |
Investment Property | 100,827 | 100,827 | - | |
Property, Plant and Equipment | 11,224,774 | 11,298,978 | 11,403,455 | |
Intangible | 726,328 | 723,345 | 696,066 | |
Total Assets | 27,867,367 | 26,852,890 | 27,013,732 | |
Balance Sheet - Liabilities and Shareholders' Equity - Consolidated | IFRS - R$ thousand | ||||
Liabilitiesand Shareholders' Equity | 30-Sep-20 | 30-Jun-20 | 30-Sep-19 | |
Current Liabilities | 3,690,047 | 3,002,048 | 3,385,283 | |
Loans and Financing and Taxes Payable in Installments | 71,797 | 158,156 | 280,089 | |
Suppliers, Subcontractors and Freight | 1,633,137 | 1,078,259 | 1,493,648 | |
Wages and Social Charges | 262,164 | 256,837 | 249,717 | |
Taxes and Taxes Payables | 392,854 | 199,386 | 112,297 | |
Accounts Payable Forfaiting | 927,184 | 939,679 | 915,783 | |
Dividends Payable | 8,630 | 8,630 | 395 | |
Customers Advances | 115,692 | 59,533 | 100,251 | |
Financial Instruments | 26,950 | 49,860 | - | |
Others | 251,639 | 251,708 | 233,103 | |
Long-Term Liabilities | 8,760,686 | 8,631,718 | 7,867,171 | |
Loans and Financing and Taxes Payable in Installments | 6,192,003 | 6,065,541 | 5,574,665 | |
Actuarial Liability | 1,287,642 | 1,266,115 | 1,018,698 | |
Provision for Legal Liabilities | 729,813 | 746,427 | 785,616 | |
Environmental Protection Provision | 241,442 | 237,968 | 223,359 | |
Others | 309,786 | 315,667 | 264,833 | |
Shareholders'Equity | 15,416,634 | 15,219,124 | 15,761,278 | |
Capital | 13,200,295 | 13,200,295 | 13,200,295 | |
Reserves & Revenues from Fiscal Year | 428,937 | 371,954 | 1,036,005 | |
Non-controlling shareholders participation | 1,787,402 | 1,646,875 | 1,524,978 | |
Total Liabilities and Shareholders' Equity | 27,867,367 | 26,852,890 | 27,013,732 |
3Q20 Results | 17 |
APPENDIX
Income Statement - Consolidated | IFRS
R$ thousand | 3Q20 | 2Q20 | 3Q19 | 3Q20/2Q20 | 3Q20/3Q19 |
Net Revenues | 4,381,212 | 2,424,715 | 3,849,794 | 81% | 14% |
Domestic Market | 3,078,104 | 1,535,098 | 3,216,047 | 101% | -4% |
Exports | 1,303,108 | 889,617 | 633,747 | 46% | 106% |
COGS | (3,489,321) | (2,145,734) | (3,373,955) | 63% | 3% |
Gross Profit | 891,891 | 278,981 | 475,839 | 220% | 87% |
Gross Margin | 20.4% | 11.5% | 12.4% | + 8.9 p.p. | + 8.0 p.p. |
Operating Income (Expenses) | (360,426) | (366,513) | (334,857) | -2% | 8% |
Selling Expenses | (96,196) | (105,947) | (73,789) | -9% | 30% |
Provision for Doubtful Accounts | (4,656) | (21,461) | 9,328 | -78% | - |
Other Selling Expenses | (91,540) | (84,486) | (83,117) | 8% | 10% |
General and Administrative | (98,233) | (96,837) | (97,924) | 1% | 0% |
Other Operating Income (expenses) | (165,997) | (163,729) | (163,144) | 1% | 2% |
Credit of tax - Inclusion of ICMS in the base calculation of PIS and | 2,392 | 3,064 | 78,335 | -22% | -97% |
COFINS | |||||
Idleness expenses (includes depreciation) | (116,679) | (91,518) | (80,651) | 27% | 45% |
Legal charges | (6,556) | (5,603) | (2,873) | 17% | 128% |
Program Reintegra | 13,128 | 262 | 239 | 4911% | 5393% |
Provision for tax credit (ICMS) | (11,978) | (12,850) | (5,697) | -7% | 110% |
Provision for onerous contracts | 4,506 | (16,306) | - | - | - |
Provision for contingencies | (2,776) | (24,378) | (131,709) | -89% | -98% |
Recovery of insurance claims expenses | 29,596 | 44,737 | 15,011 | -34% | 97% |
Result of the non-operating asset sale/write-off | 2,519 | 6,233 | (4) | -60% | - |
Result of the sale of the surplus electric energy | (3,154) | (7,501) | 22,134 | -58% | - |
Other Operating Income (Expenses), Net | (76,995) | (59,869) | (57,929) | 29% | 33% |
EBIT | 531,465 | (87,531) | 140,982 | - | 277% |
EBIT Margin | 12.1% | -3.6% | 3.7% | + 15.7 p.p. | + 8.5 p.p. |
Financial Result | (167,817) | (281,456) | (444,734) | -40% | -62% |
Financial Income | 57,014 | 68,329 | 203,960 | -17% | -72% |
Financial Expenses | (122,732) | (175,666) | (362,440) | -30% | -66% |
Net foreing exchange gain and losses | (102,099) | (174,119) | (286,254) | -41% | -64% |
Equity in the results of investees | 40,031 | 45,494 | 58,258 | -12% | -31% |
Operating Profit (Loss) | 403,679 | (323,493) | (245,494) | - | - |
Income Tax / Social Contribution | (205,597) | (71,568) | 106,514 | 187% | - |
Net Income (Loss) | 198,082 | (395,061) | (138,980) | - | - |
Net Margin | 4.5% | -16.3% | -3.5% | + 20.8 p.p. | + 8.0 p.p. |
Attributable: | |||||
Shareholders | 57,118 | (466,882) | (183,909) | - | - |
Minority Shareholders | 140,964 | 71,821 | 44,929 | 96% | 214% |
EBITDA (Instruction CVM 527) | 819,962 | 208,206 | 452,903 | 294% | 81% |
EBITDA Margin (Instruction CVM 527) | 18.7% | 8.6% | 11.8% | + 10.1 p.p. | + 6.9 p.p. |
Adjusted EBITDA - Jointly-controlled subsidiaries proportional | 825,980 | 191,639 | 441,169 | 331% | 87% |
EBITDA | |||||
Adjusted EBITDA Margin | 18.9% | 7.9% | 11.5% | + 10.9 p.p. | + 7.4 p.p. |
Depreciation and Amortization | 248,466 | 250,243 | 253,663 | -1% | -2% |
3Q20 Results | 18 |
APPENDIX
Income Statement - Consolidated | IFRS | |||
R$ thousand | 9M20 | 9M19 | 9M20/9M19 |
Net Revenues | 10,613,782 | 11,075,828 | -4% |
Domestic Market | 7,578,111 | 9,212,198 | -18% |
Exports | 3,035,671 | 1,863,630 | 63% |
COGS | (8,930,057) | (9,497,534) | -6% |
Gross Profit | 1,683,725 | 1,578,294 | 7% |
Gross Margin | 15.9% | 14.2% | + 1.6 p.p. |
Operating Income (Expenses) | (964,615) | (949,567) | 2% |
Selling Expenses | (301,950) | (212,149) | 42% |
Provision for Doubtful Accounts | (27,943) | 6,521 | - |
Other Selling Expenses | (274,007) | (218,670) | 25% |
General and Administrative | (304,447) | (308,464) | -1% |
Other Operating Income (Expenses) | (358,218) | (428,954) | -16% |
Credit of tax - Inclusion of ICMS in the base calculation of PIS and COFINS | 9,569 | 78,335 | 6% |
Idleness expenses (includes depreciation) | (266,762) | (250,749) | -88% |
Legal charges | (16,091) | (10,013) | 61% |
Program Reintegra | 13,703 | 883 | 89% |
Provision of tax credits (ICSM) | (33,868) | (15,146) | 0% |
Provision for onerous contracts | (11,800) | - | 124% |
Provision for contingencies | 25,237 | (192,266) | - |
Recovery of insurance claims expenses | 98,432 | 51,962 | - |
Result of the non operating asset sale/write-off | 9,620 | 6,100 | 58% |
Result of the sale of the surplus electric energy | (10,468) | 31,651 | - |
Other Operating Income (Expenses), Net | (175,790) | (129,711) | 36% |
EBIT | 719,110 | 628,727 | 14% |
EBIT Margin | 6.8% | 5.7% | + 1.1 p.p. |
Financial Result | (1,306,904) | (664,272) | 97% |
Financial Income | 183,097 | 361,571 | -49% |
Financial Expenses | (439,125) | (745,255) | -41% |
Net foreing exchange gain and losses | (1,050,876) | (280,588) | 275% |
Equity in the results of investees | 100,872 | 132,628 | -24% |
Operating Profit (Loss) | (486,922) | 97,083 | - |
Income Tax / Social Contribution | (134,037) | 11,461 | - |
Net Income (Loss) | (620,959) | 108,544 | - |
Net Margin | -5.9% | 1.0% | - 6.8 p.p. |
Attributable: | |||
Shareholders | (886,331) | (5,801) | 15179% |
Minority Shareholders | 265,372 | 114,345 | 132% |
EBITDA (Instruction CVM 527) | 1,567,396 | 1,496,958 | 5% |
EBITDA Margin (Instruction CVM 527) | 14.8% | 13.5% | + 1.3 p.p. |
Adjusted EBITDA - Jointly-controlled subsidiaries proportional EBITDA | 1,586,560 | 1,504,563 | 5% |
Adjusted EBITDA Margin | 14.9% | 13.6% | + 1.4 p.p. |
Depreciation and Amortization | 747,414 | 735,603 | 2% |
3Q20 Results | 19 |
APPENDIX
Cash Flow - Consolidated | IFRS | ||||||||
Cash Flow - Consolidated | IFRS | 3Q20 | 2Q20 | 3Q19 | |||||
Operating Activities Cash Flow | ||||||||
Net Income (Loss) in the Period | 198,082 | (395,061) | (138,980) | |||||
Financial Expenses and Monetary Var. / Net Exchge Var. | 116,782 | 234,991 | 261,365 | |||||
Interest Expenses | 73,321 | 88,540 | 120,595 | |||||
Depreciation and Amortization | 248,466 | 250,243 | 253,663 | |||||
Losses/(gains) on Sale of Property, Plant and Equipment | (2,519) | (6,233) | 4 | |||||
Equity in the Results of Subsidiaries/Associated Companies | (40,031) | (45,494) | (58,258) | |||||
Impairment of Assets | 6,751 | - | - | |||||
Difered Income Tax and Social Contribution | (24,917) | (45,913) | (160,197) | |||||
Constitution (reversal) of Provisions | 387,217 | 183,131 | 155,630 | |||||
Actuarial Gains and losses | 21,527 | 21,535 | 21,452 | |||||
Total | 984,679 | 285,739 | 455,274 | |||||
(Increase)/Decrease of Assets | ||||||||
Accounts Receivables Customer | (642,386) | 508,472 | 71,221 | |||||
Inventories | 372,292 | (199,142) | (79,158) | |||||
Recovery of Taxes | (21,754) | (67,996) | (53,526) | |||||
Judicial Deposits | 9,178 | (1,319) | (7,626) | |||||
Accounts Receiv. Eletrobras | 311,534 | - | - | |||||
Accounts Receiv. Affiliated Companies | - | - | 303 | |||||
Others | (32,384) | (23,080) | (23,911) | |||||
Total | (3,520) | 216,935 | (92,697) | |||||
Increase /(Decrease) of Liabilities | ||||||||
Suppliers, Contractors and Freights | 554,878 | (432,704) | 327,598 | |||||
Customers Advances | 56,159 | (8,371) | 43,080 | |||||
Tax Payable | 198,965 | 93,625 | 138,141 | |||||
Securities Payable Forfaiting | (12,495) | 223,348 | 3,518 | |||||
Actuarial Liability Payments | - | (11,030) | (4,599) | |||||
Others | (17,103) | 64,598 | (63,178) | |||||
Total | 780,404 | (70,534) | 444,560 | |||||
Cash Generated from Operating Activities | 1,761,563 | 432,140 | 807,137 | |||||
Interest Paid | (172,893) | (4,694) | (93,484) | |||||
Income Tax and Social Contribution | (51,616) | (49,227) | (33,469) | |||||
Net Cash Generated from Operating Activities | 1,537,054 | 378,219 | 680,184 | |||||
Investments activities cash flow | ||||||||
Marketable Securities | (482,767) | (256,521) | (170,059) | |||||
Fixed Asset Acquisition | (173,407) | (188,135) | (135,534) | |||||
Fixed Asset Sale Receipt | 4,551 | 18,916 | 1,432 | |||||
Dividends Received | 2,819 | 1,909 | 1,266 | |||||
Purchase of Intangible Assets | (5,439) | (4,738) | (4,518) | |||||
- | - | - | ||||||
Net Cash Employed on Investments Activities | (654,243) | (428,569) | (307,413) | |||||
Financial Activities Cash Flow | ||||||||
Inflow of Loans, Financing and Debentures | - | - | 2,811,557 | |||||
Payment of Loans, Financ. & Debent. | (1,074) | (6,651) | (2,744,344) | |||||
Swap Operations Liquidations | (143,720) | (9,309) | (5,863) | |||||
Dividends and Interest on Capital | - | (59,418) | (31,965) | |||||
Net Cash Generated from (Employed on) Financial Activities | (144,794) | (75,378) | 29,385 | |||||
Exchange Variation on Cash and Cash Equivalents | 7,304 | 1,955 | 5,086 | |||||
Net Increase (Decrease) of Cash and Cash Equivalents | 745,321 | (123,773) | 407,242 | |||||
Cash and Cash Equivalents at the Beginning of the Period | 1,678,753 | 1,802,526 | 499,611 | |||||
Cash and Cash Equivalents at the End of The Period | 2,424,074 | 1,678,753 | 906,853 | |||||
RECONCILIATION WITH BALANCE SHEET | - | - | - | |||||
Cash and Cash Equivalents at the Beginning of the Period | 1,678,753 | 1,802,526 | 499,611 | |||||
Marketable Securities at the Beginning of the Period | 827,461 | 570,940 | 745,501 | |||||
Cash and Cash Equivalents at the Beginning of the Period | 2,506,214 | 2,373,466 | 1,245,112 | |||||
Net | Increase (Decrease) of Cash and Cash Equivalentes | 745,321 | (123,773) | 407,242 | ||||
Net | Increase (Decrease) of Marketable Securities | 482,767 | 256,521 | 170,059 | ||||
Cash and Cash Equivalents at the End of the Period | 2,424,074 | 1,678,753 | 906,853 | |||||
Marketable Securities at the End of the Period | 1,310,228 | 827,461 | 915,560 | |||||
Cash and Cash Equivalents at the End of the Period | 3,734,302 | 2,506,214 | 1,822,413 |
3Q20 Results | 20 |
APPENDIX
Cash Flow - Consolidated | IFRS | |||
R$ thousand | 9M20 | 9M19 | |
Operating Activities Cash Flow | |||
Net Income (Loss) in the Period | (620,959) | 108,544 | |
Financial Expenses and Monetary Var. / Net Exchge Var. | 1,225,262 | 318,162 | |
Interest Expenses | 244,078 | 296,539 | |
Depreciation and Amortization | 747,414 | 735,603 | |
Losses/(gains) on sale of property, plant and equipment | (9,620) | (6,100) | |
Equity in the Results of Subsidiaries/Associated Companies | (100,872) | (132,628) | |
Impairment of Assets | 6,751 | - | |
Difered Income Tax and Social Contribution | (279,616) | (146,169) | |
Constitution (reversal) of Provisions | 580,386 | 290,601 | |
Actuarial Gains and losses | 64,582 | 64,356 | |
Total | 1,857,406 | 1,528,908 | |
Increase/Decrease of Assets | |||
Accounts Receivables Customer | (455,238) | 12,249 | |
Inventories | 234,923 | (326,292) | |
Recovery of Taxes | (128,731) | (159,326) | |
Judicial Deposits | (10,533) | (48,251) | |
Accounts Receiv. Eletrobras | 311,534 | - | |
Accounts Receiv. Affiliated Companies | 1,651 | 768 | |
Others | (149,096) | (133,803) | |
Total | (195,490) | (654,655) | |
Increase /(Decrease) of Liabilities | |||
Suppliers, contractors and freights | 114,867 | 359,885 | |
Amounts Owed to Affiliated Companies | (14,184) | (12,416) | |
Customers Advances | 57,935 | 36,767 | |
Tax Payable | 417,592 | 322,285 | |
Securities Payable Forfaiting | 313,381 | (50,144) | |
Actuarial Liability payments | (16,772) | (115,942) | |
Actuarial Liability Received - PB1 | 393,933 | - | |
Others | 76,772 | (19,182) | |
Total | 1,343,524 | 521,253 | |
Cash Generated from Operating Activities | 3,005,440 | 1,395,506 | |
Interest Paid | (330,146) | (340,147) | |
Income Tax and Social Contribution | (142,703) | (76,468) | |
Net Cash Generated from Operating Activities | 2,532,591 | 978,891 | |
Investments activities cash flow | |||
Marketable Securities | (642,053) | (329,001) | |
Capital increase in subsidiary | - | (9) | |
Fixed asset acquisition | (537,363) | (315,890) | |
Fixed asset sale receipt | 24,348 | 9,238 | |
Dividends Received | 6,821 | 4,268 | |
Purchase of Intangible Assets | (16,822) | (13,144) | |
Net Cash Employed on Investments Activities | (1,165,069) | (644,538) | |
Financial Activities Cash Flow | |||
Inflow of Loans, Financing and Debentures | - | 2,811,557 | |
Payment of Loans, Financ. & Debent. | (11,116) | (3,121,130) | |
Swap Operations Liquidations | (153,029) | (5,507) | |
Dividends and Interest on Capital | (59,423) | (222,882) | |
Net Cash Generated from (Employed on) Financial Activities | (223,568) | (537,962) | |
Exchange Variation on Cash and Cash Equivalents | 27,154 | 3,672 | |
Net Increase (Decrease) of Cash and Cash Equivalents | 1,171,108 | (199,937) | |
Cash and Cash Equivalents at the Beginning of the Period | 1,252,966 | 1,106,790 | |
Cash and Cash Equivalents at the End of The Period | 2,424,074 | 906,853 | |
RECONCILIATION WITH BALANCE SHEET | |||
Cash and cash equivalents at the beginning of the period | 1,252,966 | 1,106,790 | |
Marketable securities at the beginning of the period | 668,175 | 586,559 | |
Cash and cash equivalents at the beginning of the period | 1,921,141 | 1,693,349 | |
Net | increase (decrease) of cash and cash equivalentes | 1,171,108 | (199,937) |
Net | increase (decrease) of marketable securities | 642,053 | 329,001 |
Cash and cash equivalents at the end of the period | 2,424,074 | 906,853 | |
Marketable securities at the end of the period | 1,310,228 | 915,560 | |
Cash and cash equivalents at the end of the period | 3,734,302 | 1,822,413 |
3Q20 Results | 21 |
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USIMINAS - Usinas Siderúrgicas de Minas Gerais SA published this content on 29 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2020 14:09:09 UTC