The following is a summary of the Usinas Siderúrgicas De Minas Gerais S.A. (USNZY) Q4 2023 Earnings Call Transcript:
Financial Performance:
Usiminas reported a net revenue drop of 32% from BRL3 billion to BRL27 billion in 2023, mainly due to lower steel sales and high production costs.
The company achieved a net profit of BRL1.6 billion and an adjusted EBITDA of BRL1.8 billion.
Usiminas finished 2023 with a cash flow of BRL6 billion and a net cash flow of BRL89 million.
Annual investments in CapEx reached a record high amounting to BRL3 billion in 2023.
A reduction in production costs by 13% in Q4 compared to Q3 of 2023 due to adjustments in operations.
Business Progress:
With a view to improve productivity and efficiency, Usiminas announced several changes in operations including the restructuring of its organization, the revamp of Blast Furnace 3 with a BRL 2.7 billion investment, and the adjustment of low-turnover products policy to enhance inventory management.
The company is managing businesses as a unified unit and introduced two new reporting units for steel and mining.
The year 2023 saw a record sale of 9.1 million tons.
Projections for 2024 include a BRL 1.8 billion investment focusing on a new fuel injection system for the new blast furnace, reducing CO2 emissions, and improving environmental performance.
Usiminas is planning to produce higher-value market offerings and reduce production costs to stay competitive.
More details: USINAS SID MINAS GERAIS USIMINAS SPON ADR EACH REP 1 PRF NPV IR
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