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CSN Reports Q2 2010 Results

08/12/2010 - Companhia Siderúrgica Nacional posted net income of R$894 million for the second quarter of 2010, an increase of 85%, or R$412 million, compared to Q1 2010. Net revenue totaled R$3.9 billion, up 22% compared to the first quarter, chiefly due to an 86% upturn in mining revenue. Steel revenue increased 8% in the same period.

Companhia Siderúrgica Nacional (CSN) posted net income of R$894 million for the second quarter of 2010, an increase of 85%, or R$412 million, compared to Q1 2010. This is largely due to the following effects:
·         A R$473 million increase in gross profit, due to higher iron ore and steel product prices, together with greater sales volume in both segments
 
·         A R$57 million improvement in the financial result
 
·         Income tax and social contribution expenses climbed by R$141 million in 2Q10.
 
Net revenue totaled R$3.9 billion, up 22% compared to 1Q10, chiefly due to an 86% upturn in mining revenue, which was spurred by higher iron ore prices in 2Q10 and increased sales volume. Steel revenue moved up 8% in the same period, also driven by higher prices and sales volume.
 
The Presidente Vargas Steelworks produced 1.20 million tonnes of crude steel in 2Q10, 2% more than the 1.18 million tonnes recorded in the previous quarter. Rolled flat steel output increased by 5%, from 1.20 to 1.27 million tonnes in the quarter. Compared with 2Q09, growth was more substantial, reaching 38% for crude steel and 31% for rolled steel.
 
The 2Q10 EBITDA margin reached 46.4%, 5.4 p.p. up on 1Q10. EBITDA totaled R$1.8 billion, 37.7% more than in the previous quarter, and R$3.1 billion in the first half, a 119.9% improvement over the first six months of 2009.
 
Consolidated steel product sales volume in the domestic market accounted for 88.5% of total sales volume in 2Q10.
 
First-half investments came to R$1.5 billion.
 
Companhia Siderúrgica Nacional, located in the State of Rio de Janeiro, Brazil, is an industrial complex that comprises investments in infrastructure and logistics, combining in its operations own mines, integrated steel mills, cement plants, service centers, railroads and ports, with a total annual production capacity of 5.6 million tonnes of crude steel and 2.4 million tonnes of cement. With consolidated gross revenue of R$14.0 billion in 2009, CSN is the only tin-plate producer in Brazil and one of the five largest worldwide.