Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of R$2.3 billion for Q3 2024, with a margin of 20% [17] - Net debt decreased from R$37 billion in Q2 to R$34 billion in Q3, indicating a reduction in leverage [21] - Free cash flow for the quarter was R$986 million, impacted by higher CapEx and financial expenses [20] Business Segment Performance - **Mining**: Achieved record production of 11.5 million tons, with production costs at $19.2 per ton, down from previous quarters [28][30] - **Steel**: Domestic sales volume increased by 9% in Q3, with a 20% rise in EBITDA due to a 5% drop in slab production costs [11][25] - **Cement**: Sales volume reached 3,600 tons, with EBITDA up 37% year-over-year and a profitability margin of 28% [12] - **Logistics**: Positive seasonality contributed to a 4% increase in EBITDA, benefiting from improved market prices [13][33] Market Data and Key Metrics Changes - The company noted a weaker dynamic in international iron ore prices, impacting consolidated results [17] - Domestic market dynamics showed a 9% growth in steel sales, reflecting effective commercial strategies [24] Company Strategy and Industry Competition - The company is focused on operational excellence and cost reduction across all segments, with ongoing investments in mining and steel efficiency [8][18] - Strategic partnerships and the sale of a stake in CMIN are part of the company's efforts to strengthen its financial position and reduce leverage [14][65] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the recovery of the cement market and infrastructure projects in Brazil, anticipating continued demand [47][82] - The company is preparing for potential price fluctuations in iron ore and steel, with expectations of improved margins in the coming quarters [42][60] Other Important Information - The company is actively pursuing anti-dumping measures to protect its market against high levels of imports, particularly in the tin plate sector [73][76] - The company has made significant strides in ESG initiatives, including a 10% reduction in CO2 emissions in the steel segment [36][37] Q&A Session Summary Question: Insights on steel mill costs and price dynamics - Management noted a recovery in margins and a drop in slab production costs, with a positive outlook for the fourth quarter [55][57][58] Question: Context on leverage and investment strategies - Management confirmed a target leverage of 2.5 times by year-end, with ongoing discussions for strategic partnerships and expected cash inflows from recent asset sales [63][65][66] Question: Updates on anti-dumping measures - Management provided details on the provisional anti-dumping measures for tin plate and ongoing discussions for additional products, emphasizing the need for government support [70][73][76] Question: Expectations for cement segment performance - Management highlighted strong performance in the cement segment, with expectations for continued growth and high margins [79][81][82] Question: Production cost outlook for iron ore - Management indicated a production cost of $19.2 per ton for iron ore, with long-term guidance between $21 to $23 per ton [94][95]

Group 1 - The article discusses the potential for initiating a long position in GOOGL stock within the next 72 hours, indicating a positive outlook for the company [1] - It emphasizes that the author has no current stock or derivative positions in any mentioned companies, ensuring objectivity in the analysis [1] - The article expresses personal opinions and does not represent any business relationship with the companies discussed [1] Group 2 - The content clarifies that it does not provide investment advice or recommendations, highlighting the importance of due diligence by investors [2] - It states that past performance is not indicative of future results, cautioning readers about the inherent risks in trading and investing [3] - The article notes that the views expressed may not reflect the opinions of the platform as a whole, indicating a diversity of perspectives among contributors [3]

Group 1 - Arista Networks (ANET) is identified as a top stock for short-term buying on weakness, with a target to retest previous high resistance levels [1] - The proprietary SID score indicates a strong buy signal for ANET, with a projected 12-month return of 15% [1] - Technical signals show a transition from supply to demand, with positive indicators such as the Chaikin money flow and MACD suggesting upward price movement [2][3] Group 2 - SA Quant ratings for ANET are strong in Growth, Profitability, Momentum, and Revisions, but weak in Valuation, leading to an overall Hold rating [2] - Recent technical analysis indicates that ANET's price is attempting to reach its old high, with a breakout being a positive signal [3] - The conclusion emphasizes confidence in ANET's price movement towards previous highs, despite potential market downturns in the coming months [4]

Core Viewpoint - National Steel (SID) reported a smaller loss per share of 8 cents, outperforming the Zacks Consensus Estimate of a loss of 26 cents, compared to a profit of 4 cents in the same quarter last year [1] Financial Performance - The company recorded a net loss of R$222.6 million ($41 million) in Q2 2024 [1] - Domestic revenues decreased by 4.3% year over year to R$5.5 billion ($1.01 billion), while international business revenues increased by 2.7% year over year to R$5.38 billion ($0.99 billion) [1] - Total net revenues for the quarter were R$10.88 billion ($1.99 billion), down 1% year over year [1] Segmental Performance - Steel segment revenues were R$5.59 billion ($1.02 billion), down 5.9% year over year, with steel sales increasing by 6.8% to 1,122.6 thousand tons [2] - Iron ore sales decreased by 4.1% to 10,792.2 thousand tons [2] - Mining segment revenues fell by 7.8% year over year to R$3.35 billion ($0.61 billion) [2] - Logistics segment revenues increased by 16% year over year to R$839 million ($154 million) [2] - Energy segment revenues decreased by 35% year over year to R$103 million ($19 million) [2] - Cement segment revenues improved by 8.4% year over year to R$1.2 billion ($0.28 billion) [2] Margin & Costs - Cost of sales decreased by 9.8% year over year to R$7.89 billion ($1.45 billion) [3] - Gross profit increased by 33.2% year over year to R$2.99 billion ($0.55 billion), with a gross margin of 27.6% compared to 20.4% in the prior year [3] - Adjusted EBITDA improved by 16.9% year over year to R$2.65 billion ($0.73 billion), with an EBITDA margin of 24.3% [3] Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q2 2024 were R$15.54 billion ($2.85 billion), up from R$11.97 billion ($2.19 billion) at the end of the prior year [4] - The net debt to adjusted EBITDA ratio was 3.6 at the end of Q2 2024 [4] Price Performance - National Steel's shares declined by 3.2% over the past year, while the industry experienced a decline of 13.8% [5] Peer Performance - Commercial Metals Company (CMC) reported adjusted earnings per share of $1.02, down 48.5% year over year, with revenues of $2.08 billion [7] - ArcelorMittal S.A. (MT) reported a net income of $504 million, down from $1,860 million year over year, with total revenues falling around 13% to $16,249 million [7] - Nucor Corporation (NUE) reported earnings of $2.68 per share, down from $5.81 year over year, with revenues of $8,077.2 million, down around 15% [8]

Financial Data and Key Metrics Changes - The company reported an EBITDA of R$2.6 billion for Q2 2024, a 35% increase compared to Q1 2024, with an EBITDA margin rising from 19% to 23% [6] - Cash at the end of June was R$26.6 billion, providing significant comfort for the company's obligations [6] - Leverage increased slightly from 3.3x to 3.36x due to exchange rate impacts and dividend payments [13] Business Line Data and Key Metrics Changes - **Mining**: Achieved the best performance since 2016 with production costs reduced from $25 per ton to $21.2 per ton, resulting in an EBITDA margin of 48%, up 8.1 percentage points from Q1 2024 [7][18] - **Steel**: Sales volume exceeded 1.1 million tons, a 3% increase from Q1 2024 and a 7% increase year-over-year. EBITDA in this segment grew by almost 40% [8][15] - **Cement**: Sold 3.6 million tons, a 20% increase from Q1 2024, with net revenue growing by 15% and an EBITDA margin of 28%, the highest since acquiring LafargeHolcim [8][20] - **Logistics**: EBITDA grew by 9.2% compared to the previous quarter, benefiting from positive seasonality and product diversification [9] Market Data and Key Metrics Changes - Apparent consumption in Brazil grew by 9%, with domestic sales increasing by 7% [38] - The company noted a 22% import penetration in the second quarter, indicating a competitive market environment [41] Company Strategy and Development Direction - The company is focused on reducing leverage and enhancing operational efficiency across all segments, with a commitment to strategic investments in steel and mining [13][30] - Plans for potential IPOs in the cement and logistics sectors are being considered, contingent on market conditions [61] - The company aims to maintain high production levels in iron ore and cement while managing costs effectively [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2024, expecting improved results driven by operational enhancements and market demand [26][27] - The company is aware of challenges in the energy segment due to adverse weather conditions but remains committed to maintaining energy levels [10][28] Other Important Information - The company achieved decarbonization goals in the cement segment, aligning with the Paris Accord [22] - There was a significant reduction in accident frequency and severity rates, reflecting improvements in health and safety measures [22] Q&A Session Summary Question: Context on financial deleveraging and potential asset sales - Management discussed ongoing negotiations for cement asset acquisitions and potential sales of mining stakes to strategic partners to reduce leverage [33][37] Question: Recovery in steel plant results and price dynamics - Management highlighted a 9% growth in CSN's sales, with expectations for price increases and the impact of government measures on the local market [34][38] Question: Position regarding Usiminas shares - Management confirmed they are observing the ideal moment to monetize shares and are not in noncompliance with judicial timelines [44][46] Question: Cost and margin outlook for steel - Management indicated that operational efficiency efforts are yielding positive results, with expectations for continued cost reductions in the second half of the year [48][49] Question: Leverage expectations and market competitiveness - Management reiterated the goal of achieving 1x to 2x leverage in the long term, while acknowledging current challenges in the market [51][57] Question: Internationalization of cement and steel - Management confirmed ongoing efforts to expand internationally, particularly in the Americas, while maintaining a focus on domestic market strength [68][70]

CS CSN 2Q24 Earnings Release August 13, 2024 CSNA B3 LISTED SID LISTED NYSE 2Q24 – HIGHLIGHTS CEMENT LOGISTICS 2 Adjusted EBITDA Operational | --- | --- | --- | |------------------------------------------|--------------------|-----------------------------------| | improvements in practically all segments | + 34.5% | R$ 16.6 billion | | | 2Q24 VS 1Q24 | Strong commitment to deleveraging | | Excellent operational | C1 cost reduced by | | | performance : | 10% to | | | | USD 21.2/t | | Versus USD 23,5 in 1Q24 ...

Financial Data and Key Metrics Changes - The company reported a consolidated EBITDA margin of 19% for Q1 2024, impacted by lower iron ore prices and seasonality [8][10] - There was a negative cash flow of BRL 636 million, influenced by lower operating results and interest rates [9] - Net debt increased by BRL 1.2 billion compared to Q1 2023, attributed to commodity price drops [10] Business Line Data and Key Metrics Changes - Mining achieved record sales of over 9 million tonnes, with an EBITDA margin of 40% despite a significant price drop [7][14] - Steel production increased by 5.7%, but the company faced challenges with pricing due to competition from imports [12][13] - Cement maintained stable revenue despite lower volumes, achieving an adjusted EBITDA margin surpassing 25% for the first time [15] Market Data and Key Metrics Changes - The domestic steel market faced pressure from imports, with a significant portion of flat steel coming from China [36][39] - The Brazilian cement market is projected to grow by 2% this year, with April showing positive volume reactions [66] - The company noted a stable demand in the Brazilian market, particularly in civil construction, with expectations for aggressive growth in Q2 [59] Company Strategy and Development Direction - The company aims to reduce leverage below 3 times while pursuing significant capital expenditures in mining and steel [24][46] - Strategic partnerships in energy and minority stakes in mining are being explored to diversify operations [11] - The focus remains on operational excellence and capturing synergies post-acquisition of Lafarge Holcim in the cement sector [68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recovering EBITDA in Q2 due to rising prices and improved production control [22][25] - Concerns were raised about the slow governmental response to import competition, particularly from China [30][31] - The company is committed to maintaining operational efficiency and leveraging its competitive advantages in the market [39][68] Other Important Information - The company published its 2023 integrated ESG report, highlighting advances in emissions control and safety measures [8][18] - A significant investment program is underway, focusing on infrastructure and operational improvements [12][24] Q&A Session All Questions and Answers Question: Impact of government measures on import competition - The management discussed the recent government quota system and its potential effects on stabilizing margins in the steel sector, emphasizing the need for more robust measures against unfair competition [34][36] Question: Growth opportunities and capital structure - Management addressed the balance between pursuing growth opportunities and maintaining leverage below 3 times, emphasizing cautious investment strategies [34][46] Question: Overview of the cement industry and investment analysis - The management provided insights into the cement market dynamics, including pricing strategies and operational efficiencies post-acquisition of Lafarge Holcim [63][66] Question: Future margin recovery in steel operations - Management discussed strategies for increasing profitability in the steel sector, focusing on cost reduction and price adjustments in response to market conditions [64][71]

Economic Indicators - Inflation rates measured by the IPCA index were 10.1%, 5.8%, and 4.7% for the years 2021, 2022, and 2023, respectively[532]. - The CDI rate was 4.4%, 12.4%, and 13.0% for the years 2021, 2022, and 2023, respectively[533]. Revenue and Production - The steel segment represented 62.8%, 66.1%, and 50.0% of net revenues in 2021, 2022, and 2023, respectively, with gross profit contributions of 45.3%, 45.7%, and 14.3%[534]. - In 2023, 72.7% of steel revenues were from domestic sales in Brazil, compared to 70.2% in 2022[534]. - Domestic crude steel production in Brazil was 31.9 million tons in 2023, a 6.5% decrease from 2022[536]. - Domestic steel product consumption in Brazil increased by 1.5% to 23.9 million tons in 2023, while domestic sales decreased by 4.4% to 19.4 million tons[537]. - Global crude steel production was 1.89 billion tons in 2023, a slight decrease of 0.0% compared to 2022[535]. - In 2023, the mining segment represented 38% of net revenues and 60% of gross profit, with 89% of mining revenues coming from exports[548]. - Mining net operating revenues increased by R$4,610.5 million, or 36.8%, from R$12,525.1 million in 2022 to R$17,135.6 million in 2023, driven by a 28% increase in sales volume[564]. - Iron ore production reached 42.7 million tons in 2023, a 26.6% increase compared to 2022[564]. - Cement segment revenues increased by 60.0%, from R$2,819.6 million in 2022 to R$4,510.6 million in 2023, due to a 75.8% increase in sales volume[565]. - Energy segment revenues rose by 86.2%, from R$293.0 million in 2022 to R$546 million in 2023, primarily due to the consolidation of CEEE's operations[566]. Financial Performance - Total net operating revenues decreased from R$30,091 million in 2021 to R$22,718 million in 2023[546]. - Total net operating revenues increased by R$1,075 million, or 2.4%, from R$44,362 million in 2022 to R$45,437 million in 2023[561]. - Steel net operating revenues decreased by R$6,623.5 million, or 22.6%, from R$29,341.0 million in 2022 to R$22,717.5 million in 2023[563]. - Domestic operating revenues decreased by R$1,879 million, or 8.5%, from R$23,957 million in 2022 to R$22,078 million in 2023[561]. - Net income for the year plummeted by R$1,764.7 million, or 81.4%, from R$2,167.7 million in 2022 to R$403.0 million in 2023[595]. - Operating income decreased by R$2,455 million, or 47.3%, from R$7,641.5 million in 2022 to R$5,186.7 million in 2023[589]. - Cash provided by operating activities increased by R$5,250 million, or 257.0%, from R$2,042 million in 2022 to R$7,292 million in 2023[602]. - Cash and cash equivalents rose to R$16,046 million as of December 31, 2023, compared to R$11,991 million as of December 31, 2022[600]. - As of December 31, 2023, cash and cash equivalents were R$16,252 million, an increase from R$11,991 million in 2022[609]. - Selling, general and administrative expenses rose by R$1,240.0 million, or 27.6%, from R$3,249.9 million in 2022 to R$4,490.0 million in 2023[584]. Costs and Expenses - Cost of products sold increased by R$2,421 million, or 7.2%, from R$31,054 million in 2022 to R$33,475 million in 2023[568]. - Steel costs of products sold decreased by 9.7%, from R$23,256.3 million in 2022 to R$21,008.0 million in 2023, primarily due to lower sales volume[569]. - Gross profit in the steel segment decreased by R$4,375.2 million, or 71.9%, from R$6,084.7 million in 2022 to R$1,709.5 million in 2023[578]. - Mining costs of products sold increased by R$2,826.5 million, or 39.8%, from R$7,105.4 million in 2022 to R$9,931.9 million in 2023, driven by a sales volume increase of 9,332 tons[573]. - Cement segment costs of products sold increased by R$1,669.9 million, or 328.5%, from R$1,974.4 million in 2022 to R$3,644.4 million in 2023, due to a 75.8% increase in sales volume following the acquisition of LafargeHolcim[574]. - Gross profit in the energy segment surged by R$98.8 million, or 1,734.5%, from R$5.7 million in 2022 to R$104.5 million in 2023[582]. Debt and Financing - Total debt increased from R$40,919 million in 2022 to R$44,859 million in 2023, representing 227.9% of shareholders' equity[611]. - As of December 31, 2023, short-term debt was R$7,613 million and long-term debt was R$37,245 million[611]. - The debt maturity profile indicates that R$6,816 million is due in 2024, with total long-term debt obligations amounting to R$44,859 million[625]. - Cash provided by financing activities decreased by R$3,423 million in 2023, primarily due to a R$939 million decrease in debt amortization payments and a R$4,549 million decrease in new borrowings[605]. Contracts and Agreements - The company entered into a long-term supply agreement with Glencore for the prepayment of up to US$500 million for 13 million tons of iron ore over four years starting in 2024[619]. - In March 2023, the company signed a pre-payment export financing agreement for US$1.4 billion to support long-term projects, including a new pellet feed plant[620]. - In 2023, the total "take-or-pay" contractual obligations amount to R$10,038 million, with significant payments scheduled for the years 2023 to 2026[631]. - The guaranteed payment for iron ore and pellets transportation is at least 85% of the forecast annual revenue, with a set volume of 6.8 million tons for iron ore and pellets, and 3.2 million tons for coal and coke in 2023[632]. - The volume set for iron ore transportation for export from Itaguaí in 2023 is 40.5 million tons, with a payment guarantee of at least 85%[633]. - The transportation agreement for steel products in 2023 has a set volume of 1.8 million tons, with a payment guarantee of at least 80%[634]. - Cement transportation in 2023 has a set volume of 1,147.5 thousand tons, also with a payment guarantee of at least 80%[635]. Innovation and Future Outlook - CSN Inova has 73 ongoing initiatives in 2023, with 33 in planning, 23 piloted, and 17 scaled, indicating a mature innovation portfolio[646]. - CSN Inova Ventures ended 2023 with nine companies in its portfolio, with investments ranging from R$1 million to R$10 million, and new contributions expected in 2024[650]. - In 2023, significant advancements were made in projects utilizing green hydrogen in the steel industry, with the first application of Utis technology scheduled to start in the first semester of 2024[654]. - The Brazilian cement sales reached 62 million tons in 2023, remaining stable compared to 2022, with positive growth opportunities anticipated due to government housing programs[662]. - The outlook for iron ore prices in 2024 is expected to remain above historical averages due to tight supply-demand dynamics, despite challenges in the Brazilian steel market[661].

Shares of National Steel (SID) fell 3% since it reported fourth-quarter 2024 results on Mar 6, delivering earnings per share (EPS) of 13 cents, which missed the Zacks Consensus Estimate of 19 cents. It reported an EPS of 3 cents in the prior-year quarter.Domestic revenues decreased 7.3% year over year to R$5.48 billion ($1.1 billion). The company’s international business revenues improved 25.1% year over year to R$6.52 billion ($1.31 billion).For the December 2023-end quarter, net revenues were R$12 billion ...

Companhia Siderúrgica Nacional (NYSE:SID) Q4 2023 Earnings Conference Call March 7, 2024 9:30 AM ET Company Participants Marcelo Ribeiro - Executive Director of Finance and Investor Relations & Member of Executive Board Benjamin Steinbruch - President of Executive Board, Chairman and Chief Executive Officer Helena Guerra - ESG and Sustainability Director Luis Martinez - Executive Director of Commercial and Logistics Area & Member of Executive Board Divaldo Oliveira - Production Supervisor, Process Engineer ...