Gerdau reports strong Q3 North American earnings

Gerdau reports strong Q3 North American earnings
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Gerdau S.A., a scrap-fed electric arc furnace (EAF) steelmaker that also operates scrap yards, reported 23.5 percent lower year-on-year global earnings in the third quarter of this year but has pointed to its North American operations as a bright spot.

The company says its earnings before interest, taxes, depreciation and amortization (EBITDA) globally checked in at $1.04 billion in the third quarter, down from the $1.35 billion earned in the third quarter of 2021.

However, Gerdau says EBITDA in its North America business unit, at $500 million, rose 36.2 percent from the third quarter of 2021.

“North America continued to register robust demand” for steel, writes Gerdau’s management in a note accompanying its results. Gerdau cites “favorable margins and positive indicators [despite] the lower shipments in the quarter due to the scenario of inflation and potential recession.”

Looking ahead in that market, Gerdau adds, “We continue to accelerate our digital transformation by enhancing client services and mitigating future impacts given the market expectations [of] a downturn in demand.”

In a third-quarter breakdown of its sales, Gerdau lists North America as its second-largest business unit, providing nearly 33 percent of its sales. It follows Gerdau’s home market of Brazil, which accounted for 44 percent of sales.

In the EBITDA category, however, North America was the biggest contributor in the third quarter at 48.2 percent, followed by Brazil’s 29.2 percent contribution.

Regarding its presence in the ferrous scrap market in Brazil, Gerdau’s management writes that a “highlight was Rock in Rio, in September. Gerdau was the official steel of the music festival, reaffirming its position as Latin America’s largest ferrous scrap retailer.”

At the music festival, says the company, “Gerdau and Rock in Rio transformed the World Stage (the biggest of all editions) into a symbol of sustainability and paid homage to the 1 million recyclable material collectors that work every day in Brazil.”

In its review of capital expenditures, Gerdau lists major expansions in North America, including the expansion of its Whitby EAF mill in Ontario; “product mix expansion” spending at its Jackson, Michigan, mill; and an expansion program at its Midlothian, Texas, EAF mill and scrap processing complex, which entails in part an 80-megawatt solar energy installation.

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Source: Recycling Today
Gerdau reports strong Q3 North American earnings
<![CDATA[Gerdau S.A., a scrap-fed electric arc furnace (EAF) steelmaker that also operates scrap yards, reported 23.5 percent lower year-on-year global earnings in the third quarter of this year but has pointed to its North American operations as a bright spot.The company says its earnings before interest, taxes, depreciation and amortization (EBITDA) globally checked in at $1.04 billion in the third quarter, down from the $1.35 billion earned in the third quarter of 2021.However, Gerdau says EBITDA in its North America business unit, at $500 million, rose 36.2 percent from the third quarter of 2021.“North America continued to register robust demand” for steel, writes Gerdau’s management in a note accompanying its results. Gerdau cites “favorable margins and positive indicators [despite] the lower shipments in the quarter due to the scenario of inflation and potential recession.”Looking ahead in that market, Gerdau adds, “We continue to accelerate our digital transformation by enhancing client services and mitigating future impacts given the market expectations [of] a downturn in demand.”In a third-quarter breakdown of its sales, Gerdau lists North America as its second-largest business unit, providing nearly 33 percent of its sales. It follows Gerdau’s home market of Brazil, which accounted for 44 percent of sales.In…