Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Usiminas Sees Return to Profit as Brazilian Sales Increase

Aug. 21 (Bloomberg) -- Usinas Siderurgicas de Minas Gerais SA, Brazil’s second-largest steelmaker by output, expects to resume profits after six straight quarters of net losses as it boosts prices and shipments of the alloy.

Usiminas, as the Belo Horizonte-based company is known, is “very close” to turning a profit again, Chief Financial Officer Ronald Seckelmann said in a meeting with investors in Sao Paulo today. Steel sales volumes in Latin America’s largest economy are likely to grow more than 5 percent this year, above the industry average, Sales Vice-President Sergio Leite said.

Brazilian steelmakers are raising prices as a 18 percent slump in the real in six months, the worst performance of 16 major currencies, reduces the competitiveness of imports. Usiminas, the largest steel supplier to Brazil’s auto industry, posted an adjusted second-quarter loss of 59.5 million reais ($25 million), less than half the average of five analysts’ estimates compiled by Bloomberg.

Usiminas is not interested “in principle” in buying a stake in MMX Mineracao & Metalicos SA, the iron-ore producer that former billionaire Eike Batista is seeking to sell, Seckelmann said. The company’s MRS Logistica SA railway joint venture didn’t make any offer for MMX, he said, denying a report by newspaper O Estado de S. Paulo.

Usiminas lost 0.6 percent to 10.19 reais at the close in Sao Paulo, the lowest since Aug. 15. MMX gained 1.3 percent.

To contact the reporter on this story: Juan Pablo Spinetto in Rio de Janeiro at jspinetto@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.