CSN reported a fourth-quarter net loss of 85 million reais, significantly down from last year’s profit. However, the company exceeded expectations in core earnings with an EBITDA of 3.33 billion reais and net revenues of 12.03 billion reais. Steel sales increased, while analysts expressed a positive outlook for the firm, noting strong performances from its divisions.
Brazil’s CSN, one of the nation’s largest steelmakers and miners, reported a net loss of 85 million reais ($14.66 million) for the fourth quarter. This result marked a significant reversal from the profit of 851 million reais reported during the same period last year, attributed to elevated financial expenses.
Despite the net loss, CSN experienced a positive performance in core earnings, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) at 3.33 billion reais. This figure, although an 8% decrease compared to the previous year, surpassed expectations which targeted 2.87 billion reais. Furthermore, net revenue reached 12.03 billion reais, slightly above the analyst projection of 11.8 billion reais.
Steel sales showed resilience with a 10.4% increase on a yearly basis, contrasting with a 3.7% decline in iron ore sales. CSN commented, “The steelmaking operation took another step in the process of normalizing operations and recovering profitability,” indicating strength in domestic market performance despite seasonal challenges.
CSN’s mining division faced some challenges due to seasonal weather but managed to sustain a solid production pace, benefiting from rising iron ore prices. Market analysts, particularly from JPMorgan, noted that CSN and its mining subsidiary exceeded expectations, driven by robust performances in key sectors. They anticipate upward revisions to consensus estimates based on these results.
In conclusion, while CSN faced a net loss in the fourth quarter, its core earnings and revenues surpassed market forecasts. The company demonstrated resilience, particularly in its steel segment, despite external pressures. The outlook remains positive due to strong performances across its key business units, suggesting potential for future growth and profitability.
Original Source: www.tradingview.com
