OREANDA-NEWS. Usiminas - leader in the domestic flat steel market - recorded net profit of BRL 222 million in 1Q14, reversing the loss of BRL 123 million in the same period last year. As for Ebitda (earnings before interest, taxes, depreciation and amortization), it reached the highest level since 3Q10: BRL 655 million, an increase of 109% compared to 1Q13. The results were due to the growth performance of all business units, allied to the process of improving operational efficiency and cost control.

As a result of prioritizing greater integration with the customer's internal market strategy, domestic sales of Usiminas were 1.268 million tons in 1Q14 (88% of total sales), an increase of 3% compared to 1Q13. The total sales volume decreased by 10% and was 1.437 million tons, due to falling exports. In 1Q14, crude steel production in Ipatinga and Cubatão plants was 1.652 million tons, stable when compared to the same period last year.

MUSA - Mineração Usiminas, EBITDA (earnings before interest, taxes, depreciation and amortization) reached BRL 175 million in 1Q14, an increase of 22% compared to 1Q13. Sales volume of iron ore, in 1Q14, reached 1.765 million tons, 31% higher than in 1Q13, due mainly to higher demand in the foreign market. Production fell 2%, representing 1.618 million tons.

Usiminas president Julián Eguren, emphasizes his teams´ discipline on rigorous cost management, in search for higher productivity and greater integration with customers. “These factors were crucial to stabilize the Company and, above all, prepare it for the future. In 2014, we will focus on extracting the best gains in operational efficiency, to improve service to customers and also to develop a strong program of human resource development. We are moving forward in the process of continuous improvement of Usiminas and consolidating its industrial leadership in Brazil and Latin America,” says the executive.

Investments in 1Q14 totaled BRL 238 million, focused on technological upgrading of the plants, in the reform of Coke Plant II in Ipatinga and in the “Friáveis Project” of Mineração Usiminas. Of the total investments in the period, 83% were used in Steelmaking, 12% in Mining, 3% in the Steel Processing and 2% in Capital Goods.