Monday, November 17, 2008

Metals - Brazil - CSN's Q3 profits dive on financial expenses

Brazilian steelmaker CSN (NYSE: SID) reported 40mn reais (US$18mn) in net profits third quarter this year, down 94% from the year-ago period largely on increased financial expenses, the company said in a statement late Friday.


CSN's ADRs fell US$23.00 in the period, negatively impacting the steelmaker's total return equity swap by 1.3bn reais in the three-month period.

CSN made a record 4.0bn reais in net revenues third quarter, up 36% year-over-year. Net revenue per tonne averaged 2,448 reais in the domestic market versus 1,899 reais per tonne in 3Q07. The company produced nearly 1.32Mt in Q3 compared to 1.39Mt year-on-year.

Ebitda grew 60% in the period to 2.1bn reais. Net debt reached 6.3bn reais at the end of Q3, up 12% from the same time the previous year.

The steelmaker on November 18 will host conference calls on its Q3 results.



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