Brazil's Gerdau, Latin America's largest steel group, reported a 38% year-on-year rise in profits for the first three quarters of this year to 4.63bn reais (US$2.19bn), and a 44.1% increase in revenues to 36.2bn reais.
In Brazil, where the company has most of its operations, revenues in January-September amounted to 13.7bn reais, up 52.9% compared to the same period last year. In North America, Gerdau obtained 11.9bn reais, equivalent to 32.9% of all the company's inflows in the nine month period.
In terms of long steel sales, Gerdau reached 5.3Mt in the period, up 21.7% compared to 2007. In Brazil alone, sales totaled 3.9Mt, presenting a 34% year-on-year increase.
Company CEO André Gerdau Johannpeter said in a conference call that the steelmaker remains financially solid but will be monitoring consumer markets amid turbulence in the global economy.
"We have the flexibility and all necessary conditions to adjust to adversities in the current world economy," he said.
Gerdau Johannpeter added the company is not going to make immediate production cuts but is going to "make adjustments according to demand."
But in spite of the prevailing uncertainty concerning global steel demand in the short term, the executive said he believes 2008 will be end up being an good year overall for the steel industry due to favorable results in the first three quarters.
"In Brazil the perspectives are for growth until the end of the year despite the world financial crisis," he said. "According to the Brazilian central bank, the gross national product is expected to rise by 5% in 2008."
Although he acknowledged that Brazil's steel sector is already feeling a reduction in demand, Gerdau Johannpeter said he believes the nation's economy will not be hit as hard as other countries because monetary authorities have been very conservative in regards to credit.
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