Usinas Siderúrgicas de Minas Gerais SA, or Usiminas, said July 27 that it swung to a net loss of 19 million Brazilian reais in the second quarter, from a net income of 176 million reais a year earlier.
The results were affected by a 16% depreciation of the reais against the U.S. dollar in the period, which generated exchange losses.
Revenue totaled 3.20 billion reais, a 24.7% increase on an annual basis, while adjusted EBITDA slipped 30.8% to 519 million reais.
Steel sales fell 1.3% year over year to 977,000 tonnes during the quarter, while iron ore sales volume improved 120.3% to about 1.39 million tonnes.
For the first half, the company's net income fell 51% to 138 million reais, while revenue rose 31% to 6.45 billion reais. Adjusted EBITDA for the half was down 10% at 1.16 billion reais.
CapEx in the quarter rose 97.1% to 67 million reais on a yearly basis, with first-half CapEx rising 129% to 132 million reais.
The company's net consolidated debt stood at 4.7 billion reais as of June 30. The company had cash and cash equivalents of 1.10 billion reais at the end of the reporting period.
In June, S&P Global Ratings raised Usiminas' global scale corporate ratings to B from B- and its national scale ratings to BBB from BB, on expected stronger cash flowed expected for the company in the next few quarters.
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As of July 27, US$1 was equivalent to 3.71 Brazilian reais.