Brazil-based steel producer Gerdau SA has reported its financial results for the first quarter this year, posting a net profit of R$440 million ($197.3 million), rising from R$160 million in the corresponding quarter of 2013, mainly reflecting the higher operating income between the periods. In the first quarter this year, Gerdau's net sales increased by 15.1 percent year on year to R$10.55 billion ($4.73 billion), while the company's operating income amounted to R$654 million ($293.1 million), increasing by 91.8 percent compared to the first quarter of 2013.
In the first quarter of the current year, Gerdau produced 4.55 million mt of crude steel, up 3.3 percent year on year, while its finished steel shipments in the given quarter amounted to 4.4 million mt, falling by 3.7 percent year on year.
According to Gerdau, iron ore production increased substantially in the first quarter, compared to the same quarter of 2013 due to the startup of the new ore treatment unit in September 2013. On a quarterly basis, the lower production is explained by a reduction in the iron ore needs of the mill in Ouro Branco, Minas Gerais due to the shutdown of the blast furnace.
