Gerdau Breaks Sales Record in 2011
OREANDA-NEWS. February 20, 2012. GERDAU BREAKS SALES RECORD IN 2011
- Consolidated shipments reached 4.7 million metric tons in the fourth quarter, and for the year broke the company's record, reaching 19.2 million metric tons.
- Net revenue grew 16% in the fourth quarter to BRL 9.1 billion and for the year totaled BRL 35.4 billion.
- Consolidated steel production grew 8% in the last quarter of the year and reached 4.7 million metric tons. In twelve months, it reached 19.6 million metric tons.
- The investment program for the period 2012-2016 will be BRL 10.3 billion.
Gerdau ended the year 2011 with record consolidated shipments of 19.2 million metric tons, driven by increased demand for long steel in the
With the increase in shipments, consolidated net revenue increased 16% in the fourth quarter against the same period last year, reaching BRL 9.1 billion, and in 2011 reaching BRL 35.4 billion. In the fourth quarter, consolidated steel production reached 4.7 million metric tons, which is an increase of 8% over the last three months of 2010. Consolidated steel production grew to 19.6 million metric tons for the year.
From October to December, the generation of cash from consolidated operations (EBITDA) went from BRL 815 million in the fourth quarter of 2010 to BRL 1 billion driven by the expansion of net revenue, while for the year it reached BRL 4.7 billion. Fourth-quarter net profit reached BRL 472 million, representing a 12% growth compared to the last three months of 2010, while the result for the year was BRL 2.1 billion.
"We closed the year 2011 with good operational and financial performance evidenced by breaking the record in shipments, an adequate management of expenditures and comfortable levels of indebtedness even in the face of adversity resulting from the global economic slowdown and the European crisis. So, in the year that we celebrated 110 years of history, we brought to the forefront a management deeply committed to the economic, social and environmental sustainability of our business. Our challenge for 2012 is to continuously improve on our financial results and to do so, we will continuously invest more in order to keep being the company preferred by our customers, as well as to strive to reduce costs especially of the raw materials in our business," says Gerdau's CEO Andre B. Gerdau Johannpeter.
The best performing markets served by Gerdau with the best performance were
The units in
Sales in the fourth quarter from the business operation of special steel (including plants in
Gerdau invests BRL 674 million in fourth quarter
Investments in fixed assets (CAPEX) in the fourth quarter totaled BRL 674 million and for the year they reached BRL 2 billion. Scheduled investments for the next five years (2012-2016) are BRL 10.3 billion, of which approximately 70% will go to operations in
In relation to Gerdau’s own production of iron ore, the company continues with the goal of achieving self-sufficiency of Gerdau Acominas, which is the main consumer unit of this raw material. Studies for the commercial exploitation of surplus iron ore located in Minas Gerais will also continue.
The Company will begin production of flat steel in
To meet the needs of the civil construction market in
Gerdau will start up operations of a rolling mill for special steel and rebars in
The annual installed capacity of the Midlothian plant in
A new drawing mill and rolling mill for rebars and light commercial profiles is scheduled to start up operations in
The resumption of operations was recently announced in
Gerdau is recognized as investment grade by risk rating agencies
In 2011 the agencies Standard & Poor's and Fitch Ratings maintained an investment grade rating of BBB- for Gerdau. In addition, Moody's risk rating agency assigned to the Company an investment grade of Baa3 with a stable outlook. As a result, the Company received an investment grade by all three most known risk rating agencies in the capital market, which demonstrates the market's confidence in the company’s management.
Dividends to be paid on March 8
The payment of dividends for the fourth quarter results to shareholders of the publicly traded companies Gerdau