Usiminas Leads Steels Drop on Quarterly Results Miss: Rio Mover
Usinas Siderurgicas de Minas Gerais SA, the second-largest Brazilian steelmaker by output, fell the most among global peers after reporting a quarterly loss that exceeded analysts’ estimates.
Preferred shares of Usiminas, as the Belo Horizonte, Brazil-based company is known, declined 5 percent to 10.09 reais at 3:16 p.m. in Sao Paulo, heading toward its lowest close since March 25. The drop was the biggest among global peers tracked by Bloomberg.
Usiminas said today first-quarter net loss more than doubled to 153.6 million reais ($76.9 million), missing the 49.3 million average loss of four analysts’ estimates compiled by Bloomberg. Lower than expected steel and iron-ore shipments and higher costs explain the earnings miss, BES Securities analysts led by Catarina Pedrosa said in a note to clients.
“Results were slightly worse than expected,” the Sao Paulo-based analysts said today. “Most of the improvement we expect is already priced in.”
Usiminas will continue seeking to cut its debt levels and increase productivity, Chief Executive Officer Julian Eguren said on a quarterly earnings conference call today. The steelmaker, which increased prices to distributors in Brazil twice in the first quarter, had “some volume losses” to competitors, Vice President Sergio Leite said during the call.
Gerdau SA is Brazil’s largest steelmaker by output.
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