Oversea Prices Lead Brazil’s Usiminas to Top US$ 1 Bi in Net Income

    Usinas Siderúrgicas de Minas Gerais S/A announced February 25 its fourth quarter 2004  and fiscal year 2004 results. Steel product sales reached 2.17 million tons in 4Q04 and totaled 8.06 million tons in 2004.

    Growth of 5% in the year was made possible by increasing production at the Usiminas System’s two plants, which operated with stability at full capacity. Consolidated net revenues totaled R$ 3.8 billion in 4Q04 and reached R$ 12.2 billion in the year, a 41% increase in relation to 2003.


    The rise in average international prices, followed by a gradual alignment of domestic prices and growth in higher value-added products were the main determinants in revenue growth.


    Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reached R$ 1.8 billion in 4Q04, an increase of 138%. In the year, EBITDA surpassed R$ 5.6 billion, growing 83%.


    Cash generation in the fiscal year synthesized favorable conditions in the steel industry and the operational efficiency of the Usiminas System.


    Debt


    The rate of debt reduction surpassed initial goals fixed by the company. Strong cash generation made it possible to amortize US$ 621 million in the year. Consolidated gross debt fell 29% and went from R$ 7.6 billion in 2003 to R$ 5.4 billion at the end of 2004.


    Debt maturities were extended: long-term loans and financing went from 63% in 2003 to 74% in 2004. The solid financial situation achieved is reflected by the consolidated net debt/EBITDA ratio, which went from 2.2X at the end of 2003 to 0.6X in December 2004.


    Net Income


    Consolidated net income reached R$ 1.1 billion in 4Q04, a growth of 214% and, at the end of the fiscal year, reached the all-time high of R$ 3.02 billion, an increase of 131% in relation to 2003.


    Outlook


    With the present favorable industry conditions persisting, solid operational cash generation achieved in the last quarters should continue.


    Funds obtained will be directed toward the System’s investment program, which is entering a new phase and will proceed to add value to its products. Priorities in the Company also include shareholder remuneration and continued debt reduction.


    No substantial international price reductions are foreseen in the medium term in function of the heated demand in the main markets and of the raw material cost increases foreseen for 2005.


    The Usiminas System’s goal for the year is to maintain its steel product sales at the 8-million ton level, continuing its policy of giving priority to the domestic market by earmarking 75% of total production to local customers.


    Usinas Siderúrgicas de Minas Gerais S.A.
    www.usiminas.com.br


    PRNewswire

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazil: Talking to Dom Tomás, the Bishop of the Landless

    They call occupations by the landless "violent," but what about the violence of hunger, ...

    Lula honored by Brazilian Arabs

    Lula’s Going to Iran So Iraq’s Story Won’t Repeat There, He Says

    Luiz Inácio Lula da Silva, president of Brazil, said that he will visit Iran ...

    Oil industry in Brazil

    Brazil Creates Registry for Oil-Sector Small Companies

    A national registry in Brazil is going to select products and services suppliers to ...

    Political Reform Will Not End Corruption in Brazil

    The political reform under consideration in the Brazilian Chamber of Deputies will not be ...

    The Confession

    Why insist on playing with fire, which is precisely what this government and its ...

    Brazilians Vote in Lula But Call His Administration Second Most Corrupt

    Brazilian President Luiz Inácio Lula da Silva administration is the second most corrupt in ...

    Brazil’s PSDB Chief Resigns Charging Government of Corruption

    Brazilian Senator Eduardo Azeredo (PSDB, state of Minas Gerais) announced, Tuesday, October 25, on ...

    Road destroyed in Rio by waters

    First Minas, Now Brazil Floods Spread to Rio and São Paulo

    Rosinha Garotinho, the mayor of the town of Campos de Goytacazes, in the state ...

    Led by Mineral Extraction, Brazilian Industry Is Pulling Economy Up

    Industry was one of the main bases of growth for the Brazilian Gross Domestic ...

    Brazil Sees Cape Verde as Warehouse for Its Products

    In addition to the various cooperation agreements signed on January 14 with Cape Verde, ...