CSN - EBITDA Margin Exceeds 46% in 2Q10, the Highest Level for Seven Quarters

SAO PAULO, Aug. 10 /PRNewswire-FirstCall/ -- CSN - Companhia Siderurgica Nacional (BM&FBOVESPA: CSNA3) (NYSE: SID) announces its results for the 2Q10:

• The 2Q10 EBITDA margin reached 46.4%, 5.4 p.p. up on 1Q10, further underlining the recovery of CSN's operating margins;

• EBITDA totaled R$1.8 billion in 2Q10, 37.7% more than in the previous quarter, and R$3.1 billion in the first half, a 119.9% improvement over the first six months of 2009;

• Net income stood at R$894 million in the second quarter, 85.6% up on 1Q10, and R$1.4 billion in 1H10, 95.5% higher than 2Q09;

• Gross profit in 2Q10 amounted to R$1.9 billion, growth of 33.9% over 1Q10, and R$3.3 billion in the first half, 113.2% up year-on-year;

• The 2Q10 gross margin stood at 48.3%, 4.4 p.p. more than in 1Q10;

• Net revenue totaled R$3.9 billion in 2Q10, 21.6% higher than 1Q10, chiefly due to the upturn in mining revenue, which jumped by 86.1% last quarter;

• Net revenue from mining was strongly impacted in 2Q10 by higher prices and the 15.9% increase in iron ore exports over the 1Q10;

• 2Q10 net revenue from the sale of steel products moved up by 8.1% over 1Q10, fueled by higher prices and the 5.1% upturn in domestic market sales volume;

• Consolidated steel product sales volume in the domestic market accounted for 88.5% of total sales volume in 2Q10;

• Cement production totaled 376,900 tonnes in 1H10, accompanied by sales of 372,900 tonnes and net revenue of R$71.0 million;

• First-half investments came to R$1.5 billion;

• CSN paid R$1.6 billion in dividends and interest on equity to its shareholders in 2Q10;

• The net debt/EBITDA ratio closed the second quarter at 1.56x, based on EBITDA of R$5.3 billion in the last 12 months, remaining stable when compared to the ratio at the end of 1Q10;

• CSN is a highly capitalized company, with a cash position of R$9.7 billion.

The full 2Q10 Earnings Release is available on CSN's IR website at www.csn.com.br/ir

CSN will be hosting conference calls about its 2Q10 Results TOMORROW, August 11, 2010, at 11:00 a.m. US EDT in English and 9:00 a.m. US EDT in Portuguese. Connection details may be obtained on the Company's IR website.

SOURCE CSN - Companhia Siderugica Nacional