Q3 2024 Usinas Siderurgicas de Minas Gerais SA USIMINAS Earnings Call Transcript
Key Points
- Usinas Siderurgicas de Minas Gerais SA (USNZY) achieved a 54% increase in production volume compared to the last quarter, marking the highest production level since 2010.
- The company reported the best EBITDA since Q1 of 2023, reversing losses from the previous quarter due to operational efficiency and cost reduction.
- Steel sales increased by 10% in the domestic market, driven by resilient demand in sectors such as domestic appliances and the automobile industry.
- The company successfully issued debentures worth 1.8 billion BRL, demonstrating strong investor confidence and extending its debt profile.
- Usinas Siderurgicas de Minas Gerais SA (USNZY) reduced its net debt and financial leverage, ending the quarter with 5.9 billion BRL in cash.
- The company faces challenges from high levels of imports and unfair competition, particularly from Chinese steel products.
- Despite improvements, the drop in iron ore prices significantly affected the company's margins.
- The Brazilian steel market is pressured by a surplus of steel from China, impacting domestic demand.
- There is a need for adjustments in Brazil's quota systems to address the growing import levels, which are 15% higher than the previous year.
- The company is dealing with the impact of high interest rates on the Brazilian economy, which could affect future growth projections.
To those who want to follow us in English. A free translation of the webcast presentation is available on the interpretation of the presentation is available on the website. We also have the Interpreter providing simultaneous translation. Please select the preferred Audience. (Operator Instructions).
Today, we have CEO Marcelo Chara, the VP of Finance and investor relations Thiago Rodriguez and VP of sales Miguel Homes to begin. Marcelo will share some initial remarks followed by Thiao who will present the results after we address the questions submitted in the Q&A sessions.
Now I hand it over to Marcelo. You have the floor.
Good morning and thank you to everyone and welcome to our conference call. It's a pleasure to talk to you in an additional earnings result live session. We continue focus on the continuous improvement of our operations, the performance safety and we also are focused on environment regarding that is part of our industrial process.
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