Usinas Siderurgicas de Minas Gerais SA, Brazil’s second-largest steelmaker by output, led gains among Brazilian stocks after reporting earnings that exceeded estimates.
Preferred shares of Usiminas, as the Belo Horizonte, Brazil-based company is known, rose 15 percent to 9 reais at the close in Sao Paulo, its highest closing price since June 4. Volume was more than double the 3-month average, and the company had the biggest advance in Brazil’s benchmark Ibovespa index.
Usiminas reported second-quarter adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, rose to 441.3 million reais ($196.7 million) in a statement today. That exceeded the 388.8 million-real average of six analysts’ estimates compiled by Bloomberg. The net loss narrowed to 59.5 million reais from 101.7 million reais a year earlier, also beating estimates.
“The second-quarter results signal a turnaround,” Fernando Pertini, chief executive officer of Millenia Asset Management International SA, said in e-mailed comments from Panama City. “Ebitda margins will continue to improve, as international flat steel prices are showing signs of inventory rebuilding. The company is very cheap related to peers now.”
Gerdau SA is Brazil’s largest steelmaker by output.