CSN reported a net loss of 85 million reais in Q4 but exceeded analysts’ expectations for core earnings and revenue. The company generated 3.33 billion reais in adjusted EBITDA and 12.03 billion reais in net revenue, despite a decline in profits from the previous year. Analysts indicate a positive outlook for CSN’s future performance.
CSN, a prominent Brazilian steelmaker and miner, reported a net loss of 85 million reais ($14.66 million) in Q4, marking a decline from the 851 million reais profit in the same period last year. This loss was attributed to high financial expenses. Despite this setback, CSN’s core earnings and revenues surpassed market expectations.
During the quarter, CSN generated an adjusted EBITDA of 3.33 billion reais, a year-on-year decrease of 8%, yet exceeding the predicted 2.87 billion reais from analysts. The company also achieved net revenue of 12.03 billion reais, slightly higher than the anticipated 11.8 billion reais. Steel sales improved by 10.4% annually, while iron ore sales dipped 3.7%.
In a statement, CSN highlighted that its steelmaking segment had improved operations and profitability, supported by increased volumes and pricing, particularly in the domestic market. Meanwhile, the mining operations faced challenges due to the rainy season but maintained solid production levels and benefitted from rising iron ore prices.
Analysts from JPMorgan noted that both CSN and its mining division CSN Mineracao outperformed their Q4 forecasts due to favorable cost management. They indicated that the positive results stemmed from significant contributions from steel, mining, and cement businesses, suggesting potential upward revisions in consensus estimates for CSN.
In conclusion, CSN’s Q4 financial results reflect a challenging economic environment leading to a net loss. However, the company’s core earnings and revenue exceeded expectations, driven by strong performances in key business segments. Analysts maintain a positive outlook, anticipating potential upward revisions in forecasts based on these results.
Original Source: www.tradingview.com
