Specifically, in the first few days of trading in Sao Paulo, Gerdau shares have rebounded by 7.19% to 19.52 Brazilian reals (US$ 3.37) per share.
Brazilian steelmaker Gerdau has climbed more than 7% on the stock market this Wednesday despite having announced that it has reduced its net profit for the first nine months of the year by 40.9% compared to the same period in 2023, recording profits of 3.62 billion Brazilian reals (US$ 626 million).
Specifically, in the first few days of trading in Sao Paulo, Gerdau shares have rebounded by 7.19% to 19.52 Brazilian reals (US$ 3.37) per share.
In this period, sales fell by 7.4% year-on-year to R$50.2 billion (US$8.68 billion). Costs associated with sales fell by 3.3% to R$43.02 billion (US$7.44 billion).
By market, Ternium's revenue fell by 7.1% year-on-year in Brazil, which represents 38.4% of its total turnover. Revenue also fell in North America (-6.1% year-on-year) and South America (-15.5%).
Adjusted gross operating profit (EBITDA) fell 26.3% compared to the first three quarters of the previous year, to R$8.453 billion (US$1.462 billion), with an adjusted EBITDA margin of 16.8%, which is 4.3 percentage points lower year-on-year.
Operating income was 6.492 billion Brazilian reals (US$ 1.123 billion), a 32.1% decrease compared to the first nine months of the previous year.
In the third quarter, Gerdau has reduced its net profit by 10%, to 1.432 billion reais (US$ 247 million), with a turnover of 17.378 billion reais (US$ 3.006 billion), 1.8% more than in the previous year.
Investment reached 1.5 billion reais (US$ 259 million), of which 589 million reais (US$ 101 million) were allocated to maintenance and 920 million reais (US$ 159 million) to competitiveness. The total investment figure up to September has already reached 3.8 billion reais (US$ 657 million).
The company remains focused on advancing the main projects related to its investment plan announced for the current year, totaling R$6 billion (US$1.037 billion).
"The results obtained in the third quarter of 2024 already reflect the efforts to adjust our operations in Brazil in pursuit of greater competitiveness and operational efficiency, as well as strong discipline in cost management in all our business divisions," said Gerdau's CFO, Rafael Japur.
