CSN experienced a net loss of 85 million reais in Q4 due to high financial expenses but reported core earnings and revenues that exceeded market expectations. Its adjusted EBITDA was 3.33 billion reais, surpassing predictions, and steel sales rose by 10.4%. Analysts are optimistic about the company’s outlook for the upcoming year.
Brazil’s CSN, a prominent steelmaker, reported a net loss of 85 million reais (approximately $14.66 million) for the fourth quarter of the fiscal year, primarily due to elevated financial expenses. This loss contrasts sharply with a profit of 851 million reais reported during the same period last year. However, the company demonstrated resilience, achieving core earnings and revenue figures that surpassed market expectations.
In terms of financial performance, CSN’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 3.33 billion reais, down 8% compared to the previous year, but exceeding analysts’ estimates of 2.87 billion reais according to an LSEG poll. Additionally, the company recorded net revenue of 12.03 billion reais, outpacing the projected 11.8 billion reais, attributed to a 10.4% increase in steel sales year-on-year, despite a 3.7% decline in iron ore sales.
CSN emphasized that its steelmaking operations have made progress toward normalizing and improving profitability, benefiting from robust domestic market dynamics. The mining segment, while affected by seasonal rains, maintained an effective production pace and capitalized on rising iron ore prices. Analysts have noted that the business units of steel, mining, and cement have performed strongly, leading to expectations of revised upward consensus estimates for CSN and its publicly traded mining division, CSN Mineracao.
In summary, while CSN reported a net loss for the fourth quarter due to significant financial expenses, its core earnings and net revenue exceeded expectations. The positive performances in steel sales and mining indicate a potential recovery trajectory. Analysts have suggested an optimistic outlook based on the company’s strong business fundamentals and resilience in the light of challenging market conditions.
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