Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Bolsa de valores de Sao Paulo  >  Gerdau    GGBR4   BRGGBRACNPR8

Mes dernières consult.
Most popular
End-of-day quote. End-of-day quote  - 01/19
14.16 BRL   --.--%
01/09 GERDAU : Material Fact
01/03 COMMERCIAL META : Shares Rise on Earnings Growth
01/03 Steelmaker Bulks Up With Deal -- WSJ
News SummaryMost relevantAll newsSector newsTweets

Gerdau SA : Brazil Gerdau To Invest BRL838 Million To Expand Iron Ore

share with twitter share with LinkedIn share with facebook
share via e-mail
05/03/2012 | 07:17pm CET

--Long-steel maker Gerdau aims to boost iron ore production to 11.5 million tons by end-2014

--Gerdau's iron ore mines should supply 100% of company's needs by end of this year, CEO says

--Steelmaker still looking for partner to develop mines, also studying possible port project

By Jeff Fick


(Updates with additional details throughout, adds stock price in sixth paragraph.)

Brazilian long steel maker Gerdau (GGB, GGBR4.BR) plans to nearly double iron ore output by the end of 2014 as the company seeks to cut input costs and capitalize on rising raw materials prices, Chief Executive Andre Gerdau Johannpeter said Thursday.

Speaking during a conference call with reporters, Johannpeter said that Gerdau will invest 838 million Brazilian reais ($436 million) to raise iron ore production at company owned mines to 11.5 million metric tons from current output of about 6.5 million tons.

"The investments are expected to be completed by the end of 2014," Johannpeter said. The investments will include logistics and transport infrastructure to deliver the ore to Gerdau's nearby mills in Minas Gerais state, the executive added.

Gerdau and other global steelmakers have struggled in recent years with rising prices for key steelmaking raw ingredients such as iron ore, metallurgical coal and scrap metal. The ongoing European debt crisis and sluggish global economy have not allowed steelmakers to raise prices and pass along higher costs to consumers, pressuring steelmakers' margins.

Raw materials prices, however, have stabilized in recent months--a trend that should continue over the next few months, Johannpeter said. "We don't see big changes in the future," Johannpeter said. Gerdau expects to be "100% self-sufficient" in iron ore by the end of 2012, the executive added.

Late Wednesday, Gerdau reported a 3% decline in first-quarter net profit to BRL397 million despite a 10% jump in net revenues. Gerdau's locally traded shares were among the biggest losers in the Ibovespa stocks index, falling 2.0% to BRL17.45 a share at midday. In New York, the company's American Depositary Receipts were down 3.1% at $9.05 a share.

The iron ore expansion is part of a broader BRL10.3 billion investment plan through 2016 that the company expects to maintain despite the gloomy global economic scenario, Chief Financial Officer Osvaldo Schirmer said. Schirmer said that long-term investment decisions are made "independent of short-term oscillations."

Gerdau is still in talks with potential partners to help develop the company's iron ore mines, which are estimated to hold about 2.9 billion tons of ore. "The search for a partner is ongoing," Johannpeter said. "We don't have a fixed date to announce a partner."

The next step in the process will be for interested companies to visit the mine sites, Johannpeter added.

Gerdau also continues to study a port project on Sepetiba Bay near the company's Cosigua mill in Rio de Janeiro state. Initially, the project was considered as a joint development with flat steelmaker Companhia Siderurgica Nacional (SID, CSNA3.BR) and state-run energy giant Petroleo Brasileiro (PBR, PETR4.BR), or Petrobras, but that has since changed, Gerdau's Schirmer said.

The project is "in a revision and adjustment phase," Schirmer said. The joint project has been "unwound" so that each company can develop their separate areas "in their own time and within their own budgets," Schirmer added.

Gerdau envisions a port capable of exporting about 70 million tons of iron ore per year, done in two phases of 35 million tons each, Schirmer said. In addition, the port would have the capacity to import about 10 million tons of metallurgical coal, he added.

-By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085; [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on GERDAU
01/11 COMMERCIAL METALS COMPANY : To Acquire Certain U.S. Rebar Assets From Gerdau
01/09 GERDAU : Material Fact
01/03 COMMERCIAL METALS : Shares Rise on Earnings Growth
01/03 Steelmaker Bulks Up With Deal -- WSJ
01/02 Commercial Metals Bolsters Holdings of a Construction Steel
01/02 GERDAU : Sale of Operation in US
01/02 COMMERCIAL METALS : to Buy Rebar Assets From Gerdau for $600 Million
01/02 COMMERCIAL METALS : to Buy Rebar Assets From Gerdau for $600 Million -- Update
2017 GERDAU : Bienville Capital Management LLC Invests $1.54 Million in Gerdau S.A. (..
2017 GERDAU SA : ex-dividend day for final dividend
More news
News from SeekingAlpha
01/14 GERDAU/CMC TRANSACTION : Who Walks Away The Winner?
01/02 Commercial Metals to buy U.S. rebar assets from Gerdau for $600M
2017 Gerdau On A Better Path, But Higher Utilization Is Essential
2017 QUANEX : Value Proposition Not There At Current Levels
2017 Gerdau S.A. goes ex-dividend tomorrow
Financials ( BRL)
Sales 2017 37 150 M
EBIT 2017 2 333 M
Net income 2017 1 283 M
Debt 2017 12 933 M
Yield 2017 0,74%
P/E ratio 2017 19,36
P/E ratio 2018 18,91
EV / Sales 2017 0,98x
EV / Sales 2018 0,86x
Capitalization 23 295 M
Duration : Period :
Gerdau Technical Analysis Chart | GGBR4 | BRGGBRACNPR8 | 4-Traders
Technical analysis trends GERDAU
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 14,1  BRL
Spread / Average Target -0,38%
EPS Revisions
Gustavo Werneck da Cunha Chief Executive Officer
Harley Lorentz Scardoelli CFO, VP & Investor Relations Director
Francisco Deppermann Fortes VP-Human Resources & Information Technology
André Bier Gerdau Johannpeter Director
Claudio Gerdau Johannpeter Director & Vice President
Sector and Competitors
1st jan.Capitalization (M$)
GERDAU18.17%7 299
POSCO--.--%31 527
NUCOR8.93%21 847