Aug. 7 (Bloomberg) -- Cia. Siderurgica Nacional SA, the third-biggest Brazilian steelmaker, rose the most in almost two weeks after reporting better-than-expected profit.
Shares of the company known as CSN jumped 3.4 percent to 6.70 reais at the close in Sao Paulo today, the most since July 26. The stock, which traded at 1.8 times its three-month daily average volume, was the fourth-best performer on Brazil’s Ibovespa index today.
CSN posted late yesterday second-quarter adjusted net income of 494.5 million reais ($214.8 million), beating the 97.2 million reais average adjusted net loss estimated by four analysts in a Bloomberg survey. Increased margins in the company’s steel division boosted profit above expectation, Brasil Plural CCTVM analysts led by Renato Antunes said in a note to clients.
“Almost unscathed and significantly above consensus, CSN rode out second quarter with a positive performance in both steel and iron ore,” the analysts said yesterday. “The slight decrease of off balance-sheet tax liabilities is welcomed.”
CSN, which expects to invest about 3 billion reais this year, sees a “natural” improvement in reducing its debt ratios as the company cut costs and new projects come online, Investors Relations executive director David Salama said during a conference call today. The company expects to conclude negotiations with partners at its Namisa iron-ore unit “soon” after having a “good evolution” in the discussions, he said.
CSN said May 17 it was negotiating divergencies in the mining joint venture with partners including Itochu Corp. and JFE Steel Corp. and that the partnership may be dissolved if differences couldn’t be bridged.
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