
Photo courtesy of Gerdau SA
Gerdau SA, a Brazil-based steel producer with recycled-content mills in North America, says its 2024 second quarter was marked by a still-challenging dynamic, though it cites its North American facilities for a strong performance.
In the quarter, the company’s net sales figure rose by 2.5 percent compared with the previous quarter. However, its second-quarter net income of about $155 million was less than half of the $358 million it earned in the first quarter.
In its North American business district, Gerdau's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin of 21.2 percent was down by more than 3 percentage points from the prior quarter as a result of lower sales prices in the period.
That figure still compares favorably with the 8.7 percent EBITDA margin in Gerdau’s Brazil business district in this year’s second quarter.
“The strong performance of the North America business district reflects sustained healthy levels in the steel market in the region, driven by a continuing reshoring process, combined with the economy and industry incentive programs implemented by the United States government,” Gerdau says.
“Both in the United States and in Brazil, we continued to see a gradual recovery in the auto market, after a more unfavorable period in 2023."
Gerdau CEO Gustavo Werneckhe says the company’s management has reacted to retain and improve profitability in the rest of 2024.
“The initiatives announced in the second quarter to adjust the company’s structure to the current business environment will affect the results over the coming quarters, ensuring even higher value creation for all its stakeholders,” Werneckhe says.
Gerdau says it is the largest recycler of ferrous scrap in Latin America and that each year globally it transforms 11 million metric tons of scrap into steel.
In the U.S. Gerdau operates electric arc furnace (EAF) mills in Arkansas, Georgia, Iowa, Michigan, Minnesota, North Carolina, Texas and Virginia. In Canada, it has two mills in Ontario and one in Manitoba. The company also operates metal recycling and auto shredding facilities in both nations.
Get curated news on YOUR industry.
Enter your email to receive our newsletters.
Latest from Recycling Today
- ReMA opposes European efforts seeking export restrictions for recyclables
- Fresh Perspective: Raj Bagaria
- Saica announces plans for second US site
- Update: Novelis produces first aluminum coil made fully from recycled end-of-life automotive scrap
- Aimplas doubles online course offerings
- Radius to be acquired by Toyota subsidiary
- Algoma EAF to start in April
- Erema sees strong demand for high-volume PET systems