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Investors in Gerdau S.A (GGB) need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 21, 2024 $2.00 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean ...

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Gerdau S.A. (NYSE:GGB) Q1 2024 Earnings Conference Call May 3, 2024 11:00 AM ET Company Participants Renata Oliva Battiferro - Head-Investor Relations Gustavo Werneck - Chief Executive Officer Rafael Japur - Chief Financial Officer Conference Call Participants Caio Ribeiro - Bank of America Rodolfo Angele - JPMorgan Marcio Farid - Goldman Sachs Daniel Sasson - Itau BBA Ricardo Monegaglia - Safra Bank Lucas Laghi - XP Renata Oliva Battiferro Good afternoon and welcome to Gerdau's Conference Call Results for ...

G E R D A U S . A . C o n d e n s e d c o n s o l i d a t e d i n t e r i m fi n a n c i a l s t a t e m e n t s a s o f M a r c h 3 1, 2 0 2 4 The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements GERDAU S.A. CONSOLIDATED BALANCE SHEETS In thousands of Brazilian reais (R$) (Unaudited) | | Note | March 31, 2024 | December 31, 2023 | | --- | --- | --- | --- | | CURRENT LIABILITIES | | | | | Trade accounts payable - domestic market | 11 | 4,250,799 | 4,120,70 ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics a ...

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Steel Production and Market Dynamics - In 2023, steel imports in Brazil reached 5 million tonnes, a 50% increase compared to 2022, marking the highest level since 2010, which negatively impacted Gerdau's results[43]. - The Ouro Branco mill accounted for 61.7% of the total crude steel output in the Brazil Business Segment in 2023, highlighting its significance in production capacity[49]. - In 2022, Brazil produced 34.1 million tonnes of crude steel, holding a 1.8% share of the global market and 77.4% of South America's total steel production[139]. - In 2023, Brazilian steel product sales reached 31 million tonnes, with flat steel products accounting for 69.5% of total sales[140]. - The Brazilian GDP increased by 2.9% in 2023, while steel consumption surged by 18.5%[142]. - Brazilian steel exports totaled 11.7 million tonnes in 2023, representing 37.2% of total sales[144]. - The apparent consumption of hot-rolled steel products globally saw a slight increase of 0.7% year-on-year, with a 1.7% increase excluding China[190]. - Gerdau's exports to South America accounted for 44% of total exports in 2023, while Central America represented 43%[191]. - The Brazilian steel market has seen a 25% import penetration rate as of December 2023, significantly higher than the average of the last ten years, impacting local competitiveness[221]. Financial Performance and Challenges - Gerdau's total consolidated net sales for 2023 were R$ 68.9 billion, a decrease of 16.3% from R$ 82.4 billion in 2022[172]. - The company produced 11.6 million tonnes of crude steel in 2023, down 8.8% from 12.7 million tonnes in 2022[175]. - Shipments totaled 11.3 million tonnes in 2023, a decline of 4.9% compared to 11.9 million tonnes in 2022[171]. - In 2023, Gerdau's net sales in Brazil decreased to R$26,830.7 million from R$32,971.1 million in 2022, representing a decline of approximately 18.5%[200]. - Gerdau's net income in Brazil was R$904.5 million, a significant decrease from R$3,325.3 million in 2022, reflecting a drop of 72.8%[200]. Operational Risks and Regulatory Environment - Increased competition from heavily subsidized steel imports, particularly from China, poses a significant threat to Gerdau's competitiveness and financial condition[46]. - The company faces risks from rising prices of raw materials, such as iron ore and coking coal, which could increase production costs and reduce profit margins[48]. - Global economic instability, including the impact of the Russian invasion of Ukraine, could adversely affect steel demand and prices, impacting Gerdau's operations[36]. - The company is vulnerable to inflationary cost pressures, particularly in relation to energy prices, which have been exacerbated by geopolitical events[52]. - Future compliance with stricter environmental regulations may increase operational costs, adversely affecting financial performance[104]. - The company may face increased costs and operational challenges due to future GHG emissions regulations and the need for new technologies in the production chain[60]. - Regulatory measures on steel trade may increase product prices or limit export capabilities, affecting financial results[102]. - The company is involved in various legal disputes that could result in significant monetary claims, impacting cash flows and financial condition[99]. Market Competition and Strategic Positioning - Gerdau is the largest Brazilian producer of steel, with 71% of its production derived from scrap, transforming 11 million tonnes of scrap into various steel products annually[132]. - Gerdau faces intense competition from local companies like Simec and CSN in the rebar market, as well as from imports, particularly from China[220][221]. - Key competitors in the North American market include Commercial Metals Company, Nucor Corporation, Steel Dynamics Inc., and Cleveland-Cliffs[223]. - The company’s South American operations are heavily reliant on shipments from Argentina and Peru, with over 80% of shipments originating from these countries[224]. - Gerdau's competitive edge is attributed to product diversification and decentralized operations, although it faces challenges from heavily subsidized imports[220]. Investment and Capacity Expansion - The company invested in expanding the production capacity of its iron ore mines in Minas Gerais to mitigate exposure to price volatility[50]. - Gerdau holds certified reserves of 476 million metric tonnes of iron ore as of 2023[178]. - Gerdau's production capacity includes 1.1 million tonnes of crude steel and 1.1 million tonnes of rolled steel products annually[187]. - Gerdau operates 29 steel producing facilities globally, with a significant presence in North and South America[161]. - The company operates 26 mini mills worldwide, which are designed to produce steel products with lower capital costs and operational risks[202]. Economic and Political Influences - The deterioration of Brazilian and global economic conditions could negatively affect global demand for steel and the company's sales and cash flows[82]. - Brazil's political instability continues to influence economic performance and investor confidence, potentially leading to economic deceleration[113]. - High inflation in Brazil could reduce demand for the company's products and increase costs, adversely affecting profit margins and net income[115]. - The company is subject to information technology risks, including potential cyberattacks that could disrupt operations and result in financial losses[75]. Management and Governance - Gerdau's controlling shareholder has significant powers, including electing a majority of directors and approving major corporate actions, which may conflict with non-controlling shareholders' interests[119]. - Gerdau's management continuity is crucial for its competitive position, as the loss of senior executives could adversely impact its strategy and operations[120]. - The company is subject to different disclosure requirements as a foreign issuer, which may affect the information available to U.S. investors[121].

Gerdau S.A. (NYSE:GGB) Q4 2023 Earnings Conference Call February 21, 2024 10:00 AM ET Company Participants Renata Oliva Battiferro – Head-Investor Relations Gustavo Werneck – Chief Executive Officer Rafael Japur – Chief Financial Officer Conference Call Participants Daniel Sasson – Itaú Leonardo Correa – BTG Pactual Marcio Farid – Goldman Sachs Rafael Barcellos – Bradesco Guilherme Rosito – Bank of America Renata Oliva Battiferro Good afternoon, everyone. Welcome to Gerdau's Earnings Release Call for the Fo ...

¹ Global Revolving Credit Facility ² With no deferred expenses 14 R$2.6 b R$175 M R$0.05 PER SHARE (R$ million) Buyback (R$ million) Payout¹ Dividends distributed 4Q23 PAYOUT ABOVE THE STIPULATED MINIMUM, EVEN AMID A CHALLENGING BACKDROP GGBR4 1. Shareholder payments / Parent Company's net income after booking the reserves set forth in the Bylaws. 2. Closing price in 2023 over the closing price in 2018, in the original currency and adjusted by dividends (including the buyback program and bonus shares). This ...