Brazilian steelmaker Gerdau saw a 17pc increase in its crude steel production of to 3.2mn mt in Q3 2020, from 2.7mn mt in Q3 2019, owing to higher outputs from its domestic as well as North and South American plants.
The company, in its Q3 earnings results dated Oct 28, noted that steel sales in the third quarter also increased by 4pc to 3.18mn mt from 3.05mn mt in Q3 2019, due to the higher demand in South America, apart from the domestic market. The company’s net sales rose by 23pc in value to BRL12.2bn ($2.1bn) in Q3 2020, from BRL9.9bn in Q3 2019.
The company’s adjusted EBITDA rose by 46pc in Q3 2020 to BRL2.1bn, from BRL1.4bn in Q3 2019. Net profits jumped to BRL795mn ($138.2mn) in the quarter, from BRL289mn in Q3 2019.
Domestic production rose 44pc to 1.55mn mt in Q3 2020, from 1.07mn mt in the prior year period. Domestic sales, including exports, climbed 7pc to 1.51mn mt in Q3 2020, from 1.41mn mt in Q3 2019.
Gerdau North America’s crude steel output increased by 6pc to 1.15mn mt in Q3 2020, from 1.08mn mt in Q3 2019. This division’s shipments remained flat in Q3 at 1.08mn mt. In Q3, South American production saw an 11pc uptick to 170,00mt from 153,000mt in Q3 2019 while steel shipments rose by 8pc to 300,000mt in Q3 2020, from 279,000mt in the same quarter last year.
However, the company’s crude steel production from its special steel division saw a reduction of 22pc to 323,000mt in Q3 2020, from 415,000mt in Q3 2019 while steel shipments fell by 12pc to 338,000mt in Q3 2020, from 386,000mt in Q3 2019.
($1 = BRL5.76)