The following is a summary of the Usinas Siderúrgicas De Minas Gerais S.A. (USNZY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Usinas Siderúrgicas De Minas Gerais reported Q1 2024 net revenue of BRL 6.2 billion, an 8% decline QoQ due to unfavorable mining unit performance.
Adjusted EBITDA for the quarter stood at BRL 416 million with a 7% margin, marking a 28% QoQ improvement from non-recurring effects and improved performance in the steel unit.
The company's net income rested at BRL 36 million, negatively influenced by the dollar's appreciation in the financial results.
Despite an 18% quarterly increase in the volume of imported steel, the firm managed to maintain a constant steel sales volume of 1 million tons.
An 11% reduction in the cost of goods sold (COGS) in the steel mill unit signaled efficient cost management.
Business Progress:
The company has made considerable strides with the ramp-up of Blast Furnace 3, concentrating on industrial process efficiency and cost-cutting.
With an ecological target for 2030 of reducing greenhouse gas emissions by 15%, the firm is prioritising energy efficiency, the use of bio-resources, renewable energy harnessing, and raw materials optimization.
Despite demanding market conditions at the start of 2024, the company predicts market stabilization and consistent steel sales in Q2.
The company aims to improve its management model focusing on operational excellence, community engagement, and environmental safety despite anticipated short-term challenges from the international market.
The company has made operational improvements, using Blast Furnace 3 for steel production, allowing them to produce between 80-90% of their capacity during certain periods.
The company expects the year's sales volume to be lower than the previous year due to parallelization of some areas and the development of new operations.
More details: USINAS SID MINAS GERAIS USIMINAS SPON ADR EACH REP 1 PRF NPV IR
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