Usiminas, a Brazilian steelmaker, reports a third-quarter net loss.

29 Oct, 2023

Usiminas, a Brazilian steelmaker, reports a third-quarter net loss

Brazil's prominent steel manufacturer, Usiminas (USIM5.SA), disclosed its financial performance for the third quarter, revealing a net loss of 166 million reais ($33.29 million). This figure marked a stark contrast from the 609 million reais profit the company recorded in the same period the previous year. The primary contributing factor to this downturn was a 2% decline in sales during the quarter. The company attributed the weakened bottom line to both reduced operating results and losses stemming from fluctuations in foreign exchange rates.

Analysts surveyed by LSEG had anticipated a more substantial net loss, projecting a figure of 180 million reais for the quarter. Usiminas reported steel sales of 1.02 million metric tons in the three-month period concluding in September. While this marked a decrease compared to the previous year, it represented a 5% increase over the preceding three-month period. Looking ahead, Usiminas anticipates fourth-quarter sales to fall within a range of 900,000 to 1 million tons.

The company's third-quarter performance highlights the challenges faced by the steel industry in a dynamic economic environment, where factors like currency exchange rates and global demand play a pivotal role in determining profitability. Usiminas' ability to adapt to these challenges and its forthcoming fourth-quarter performance will be closely monitored, as the steelmaker strives to regain its footing in a competitive market.