Cia. Siderurgica Nacional SA (SID:US), the third-largest Brazilian steelmaker, dropped to the lowest in almost eight years after posting a first-quarter profit that missed analysts’ estimates.
CSN, as the company is known, fell 0.5 percent to 6.68 reais at 2:18 p.m. in Sao Paulo after falling as much as 3.1 percent. A close at this level would be the lowest since July 11, 2005. The stock traded at 1.1 percent of its three-month daily average volume.
CSN said yesterday that net income for controlling shareholders dropped 75 percent to 27.3 million reais ($13.5 million) from $110.7 million a year earlier, missing a 168.5 million reais average estimate that excludes some items of eight analysts in a Bloomberg survey. Profit at the Sao Paulo-based company was affected by a worse-than-expected operational performance in its mining unit, Citigroup Inc. analysts Alexander Hacking and Thiago Ojea said.
“The main weakness was iron-ore sales,” the analysts said in a research note today. “Concerns include high debt, investment priorities and limited visibility on corporate strategy.”
(CSN is scheduled to hold a conference call with investors today at 2 p.m. New York time.)
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