Usiminas Leads Brazil Stocks After Return to Profit: Rio MoverJuan Pablo Spinetto
Usinas Siderurgicas de Minas Gerais SA, Brazil’s second-largest steelmaker by output, led gains among Brazilian stocks after reporting its first net income in almost two years.
Preferred shares of Usiminas, as the Belo Horizonte, Brazil-based company is known, advanced 3.7 percent to 11.73 reais at 12:15 p.m. in Sao Paulo, heading towards its highest close since Oct. 16. Volume was 60 percent of the 3-month daily average for today’s closing. Usiminas advanced the most in Brazil’s benchmark Ibovespa index.
Usiminas said in a statement today it had third-quarter net income of 70.5 million reais ($32.2 million) compared with a loss of 143.3 million a year earlier, the first profit since 2011’s fourth quarter. That met a 71.2 million-real adjusted net income average estimate by nine analysts compiled by Bloomberg. Adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, rose to 537.6 million reais, the highest result in three years, according to Bloomberg data.
“Usiminas again posted a positive performance by controlling costs and expenses,” Itau BBA analysts Marcos Assumpcao and Andre Pinheiro said in a note to clients today. “The strong third quarter results could lead to a positive earnings revision by those who were skeptical about the potential turnaround.”
Gerdau SA is Brazil’s largest steelmaker by output.