The following is a summary of the Companhia Siderúrgica Nacional (SID) Q1 2024 Earnings Call Transcript:
Financial Performance:
CSN reported record sales in mining for Q1 2024 but also experienced a notable reduction in accounts receivable due to weaker sales, specifically owing to a drop in international prices.
EBITDA for the period was negatively impacted due to a drop in flat steel prices, resulting in an EBITDA margin of 19%.
Despite several challenges, the company managed to maintain an adjusted cash flow, although there was a negative result of BRL636 million.
The company saw an increase in its level of indebtedness of BRL1.2 billion compared to the first quarter last year due to a drop in commodity prices.
Business Progress:
CSN is accelerating investment in capacity expansion projects in mining, associated with new P15 equipment purchases, and plans to expand in both mining and steel sectors.
The company reported a third consecutive quarter growth in sales of steel and continued assertive commercial activity in cement.
CSN's ESG pursuits resulted in a decrease in accident frequency rates and significant developments in dam safety.
They are working to mitigate production issues in steel mills and are committed to reducing leverage and managing debt costs in upcoming quarters.
The company is capitalizing on the growth of the concrete market in Brazil in its cement business, and sees potential opportunity for growth in cement prices.
CSN has potential investment plans in the U.S to consolidate existing quotas and to invest in decarbonizing and clean energy initiatives. It is also focused on improving margins and operational excellence in the second half of the year.
More details: National Steel IR
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