Brazilian brokerage Brascan Corretora said it expects steelmaker CSN (NYSE: SID) to post a 26% year-on-year increase in revenues but a 40.9% drop in profits in its third quarter results to be released Friday (Nov 14) after the Bovespa stock market closes.
"Despite increases in cash generation, we evaluated that exchange variations will cause CSN to earn 413mn reais [US$178mn] in the quarter," Brascan analyst Rodrigo Ferraz said in a report by the firm.
CSN's net profits in 3Q07 totaled 699mn reais.
Ferraz said he expects improvements in the steelmaker's operational results with revenues reaching 3.73bn reais in Q3 versus 2.97bn reais in 3Q07.
On the other hand, Ferraz said he believes net earnings should plunge due to exchange rate variations in the period.
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