Q4 2024 Usinas Siderurgicas de Minas Gerais SA USIMINAS Earnings Call (English, Portuguese) Transcript
Key Points
- Usinas Siderurgicas de Minas Gerais SA (USNZY) achieved the second greatest production volume of crude steel since 2015, indicating strong operational performance.
- The company reported a 31% increase in EBITDA for its steel unit compared to 2023, showcasing significant financial improvement.
- Cost of product sales per ton dropped by 11% compared to 2023, reflecting enhanced operational efficiency and cost management.
- The demand for flat steel grew by 9.8% in 2024, reaching the highest level since 2013, driven by strong performance in the automobile and home appliance sectors.
- Usinas Siderurgicas de Minas Gerais SA (USNZY) is actively investing in sustainability, with a decarbonization program aiming to reduce greenhouse gas emissions by 50% per ton of crude steel by 2030.
- The mining segment was negatively impacted by a drop in iron ore prices and sales volume, affecting overall profitability.
- High interest rates and monetary tightening are expected to slow down growth in 2025, posing a challenge to the company's expansion plans.
- The Brazilian market saw a 57% increase in flat steel imports from 2023 to 2024, primarily from China, creating unfair competition and impacting local production.
- The tariff quota measure adopted in 2024 was deemed inefficient in protecting the Brazilian steel industry from subsidized imports.
- The company's working capital remains stable, with no significant plans to reduce it in 2025, potentially limiting financial flexibility.
Good morning and welcome to Usiminas conference call. Where we will discuss the results of Q4 of 2024, and the year of 2024. I'm Leonardo Karam, Usiminas Investor Relations and General Manager.
For those who want to follow, along in English, the simultaneous interpretation of the webcast presentation is available on the Usiminas IR website. We also have an interpreter providing simultaneous translation. Please select your preferred audio channel by clicking on the icon at the bottom of your Zoom screen.
(Event Instructions) This conference call is being recorded. And simultaneously broadcast in Usiminas YouTube channel. We remind you that this conference is exclusively for investors and market analysts. Please identify yourself to ensure your question is addressed. Any questions from journalists should be directed to Usiminas Media relations via email [email protected].
Before proceeding, we would like to clarify that statements made during this conference call
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