Earnings Briefing - Gerdau

LONDON, August 5, 2014 /PRNewswire/ --

Investor-Edge.com has issued complimentary post-earnings coverage on Gerdau S.A. (NYSE: GGB) as the company announced its earnings results on Wednesday, July 30, 2014. Gerdau S.A. reported a 5.70% Y-o-Y growth in net revenues and a 6.90% Y-o-Y growth in physical sales in North America in the second quarter of 2014. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview   

Gerdau S.A.'s second quarter consolidated physical sales of steel fell 2.40% Y-o-Y to 4.52 million metric tons due to reduced demand for steel in the Brazilian market on lower economic activity in the period, a decline in exports from Brazil, and lower sales in the other countries of Latin America. The company produced 4.67 million metric tons of steel during the quarter, which is 0.5% higher from the second quarter of last year. The global steel producer's operating cash flow (EBITDA) fell 2.20% Y-o-Y to R$ 1.17 billion in Q2 2014. The metals and mining company recorded Gross and EBITDA margin of 12.10% and 11.20%, respectively, down from 13.60% and 12.10%, respectively, in prior year's quarter. However, the company reported 94.10% Y-o-Y surge in iron ore sales to 1.7 million metric tons. The free research on GGB can be downloaded as in PDF format at:

http://www.Investor-Edge.com/GGBFreeReport

André B. Gerdau Johannpeter, the company's Chief Executive Officer, stated in the press release that the overall steel sector, which has been hit by pressurized margins and a surplus installed capacity of worldwide, is observing a moment of volatility in earnings. The CEO further asserted that despite these challenges, the company's strategy of geographic diversification of assets has helped in stabilizing its performance. He added that the recovery in the U.S. market during the quarter has diluted the impact of lower demand in some of Gerdau S.A. operational markets. He further said that the company will continue to work to boost its operational efficiency, optimize working capital compared to the levels of demand, and review investments in fixed assets (CAPEX).

Gerdau S.A. reported revenue of R$ 10.44 billion during the second quarter of 2014, which was above R$ 9.88 billion in the prior year's comparable quarter, but underperformed the market consensus estimate of R$ 10.76 billion. The company's net income stood at R$ 393 million, during Q2 2014, below R$ 401 billion in the second quarter 2013 and Bloomberg analysts' estimate of R$ 489.33 million. Sign up and read the free analyst's notes on GGB at:

http://www.Investor-Edge.com/GGB-05082014

The company also announced Q2 2014 dividend of R$ 0.06 per share, payable on August 21, 2014, to all stockholders of record as of the close of business on August 11, 2014.

Stock Performance   

Gerdau S.A.'s shares declined 3.23% to close at $5.99, following the earnings release on Wednesday, July 30, 2014. On Monday, August 04, 2014, the company's shares gained 1.03% to end at $5.90. Gerdau S.A.'s shares oscillated between $5.80 and $5.94 during the trading session. A total of 5.38 million shares were traded, which is higher than its three months average volume of 5.24 million shares. Gerdau S.A.'s shares have fallen by 1.50% in the previous three trading sessions, 3.12% in the last one month, and 24.74% on YTD basis. The company is trading below its 50-day and 200-day moving averages of $6.11 and $6.77, respectively. The stock has a Relative Strength Index (RSI) of 36.92. Visit Investor-Edge and access the latest research on GGB at:

http://www.Investor-Edge.com/GGBEarningsCoverage

Sneak Peek to Corporate Insider Trading   

In the last one month, Gerdau S.A. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on GGB is available at:

http://www.Investor-Edge.com/GGBInsiderTrading

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EDITOR'S NOTES:

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