Cia. Siderurgica Nacional SA (SID:US), the third-biggest Brazilian steelmaker, led gains in the country’s benchmark stock index after reporting better-than-expected profit.
Shares of the company known as CSN jumped 6.3 percent to 6.89 reais at 11:19 a.m. in Sao Paulo, heading to its highest close since July 29. The stock, which traded at 79 percent of its three-month daily average volume, was the best performer on Brazil’s Ibovespa index today.
CSN posted late yesterday second-quarter adjusted net income of 494.5 million reais ($214.8 million), beating the 97.2 million reais average adjusted net loss estimated in a Bloomberg survey. Increased margins in the company’s steel division boosted profit above expectation, Brasil Plural CCTVM analysts led by Renato Antunes said in a note to clients.
“Almost unscathed and significantly above consensus, CSN rode out second quarter with a positive performance in both steel and iron ore,” the analysts said yesterday. “The slight decrease of off balance-sheet tax liabilities is welcomed.”
(CSN is hosting a conference call with investors today that started at 10 a.m. New York time.)
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