(Updates with iron-ore sales, crude steel volumes in third paragraph.)
Oct. 27 (Bloomberg) -- Cia. Siderurgica Nacional SA, the third-largest Brazilian steelmaker by output, said third-quarter profit rose 52 percent, beating analysts’ estimates, after record iron-ore sales more than offset a fall in steel revenues.
Net income jumped to 1.12 billion reais ($665 million) from 737.4 million reais in the year-earlier period, the Sao Paulo- based company said today in a regulatory filing. CSN, as the steelmaker is known, was expected to post profit of 577.1 million reais on an adjusted basis, the average of 10 analyst estimates compiled by Bloomberg.
Revenue rose 7.3 percent to 4.24 billion reais boosted by the company’s mining unit, which accounted for 59 percent of Ebidta, or earnings before interest, taxes, depreciation and amortization. Iron-ore sales volumes increased 13 percent to a record 7.97 million metric tons while crude-steel sales dropped 1 percent to 1.18 million metric tons. Revenues for the steel business fell 7.7 percent in the quarter.
CSN, which since 1946 operates Brazil’s first integrated flat-steel plant, the Presidente Vargas mill, is relying on its iron-ore unit to make up for lower margins in its steel business. The outlook for Brazilian steelmakers may remain “challenging” over the next several months as declining global prices, a slowdown in domestic demand and currency fluctuations weigh on earnings, Barclays Plc. analysts led by Leonardo Correa in Sao Paulo, said in a note to clients yesterday.
CSN rose 7.9 percent to close at 16.40 reais in Sao Paulo trading today, its biggest gain since Aug. 11. The stock has dropped about 39 percent since the beginning of the year, more than doubling the 14 percent decline for Brazil’s benchmark Bovespa Index.
The earnings report, which is based on international financial reporting standards, was released after the close of regular trading in Brazil.
(CSN will host two conference calls with investors tomorrow in Portuguese and English at 8 a.m. and 10 a.m. New York time.)
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