CSN(US:SID)2025-04-30 21:21Financial Performance - The steel segment contributed significantly to the company's financial performance, accounting for 66.1%, 50.0%, and 53.1% of net revenues in 2022, 2023, and 2024, respectively[548]. - In 2022, 2023, and 2024, the mining segment represented 28%, 38%, and 30% of the company's net revenues, respectively[558]. - The cement segment accounted for 6.4%, 9.9%, and 10.9% of net revenues in 2022, 2023, and 2024, respectively[564]. - Total net operating revenues for 2024 were R$43,687 million, a decrease from R$45,437 million in 2023[571]. - The company reported a net loss of R$2,592 million for 2024, compared to a net loss of R$318 million in 2023[571]. - Total net revenue decreased by R$1,751 million, or 4%, from R$45,438 million in 2023 to R$43,687 million in 2024, primarily due to lower average iron ore prices[576]. Production and Sales - Crude steel production in Brazil reached 33.7 million tons in 2024, representing a 5.4% increase compared to 2023, while apparent domestic consumption of steel products rose by 8.7% to 26.0 million tons[551]. - Domestic steel sales increased by 8.7% to 21.2 million tons in 2024, reflecting strong local demand[551]. - The company maintained self-sufficiency for iron ore used in steel production, extracting approximately 3.5 million tons in 2024[567]. - Steel net operating revenues rose by R$461 million, or 2.0%, from R$22,717 million in 2023 to R$23,179 million in 2024, with sales volume increasing by 9.2%[578]. - Cement sales volume in 2024 increased by 3.4% year-over-year, reaching 64.7 million tons[565]. Costs and Expenses - Gross profit for 2024 was R$11,696 million, down from R$11,962 million in 2023[571]. - Selling expenses increased to R$5,453 million in 2024 from R$3,729 million in 2023[571]. - Selling, general and administrative expenses surged by R$1,819 million, or 58.7%, from R$4,490 million in 2023 to R$6,309 million in 2024, mainly due to increased freight rates[596]. - Gross profit decreased by R$266 million, or 2.2%, from R$11,963 million in 2023 to R$11,697 million in 2024, reflecting a 0.5 percentage point decline in gross margin[590]. Market Dynamics - The steel prices are sensitive to supply and demand dynamics, influenced by broader economic cycles and production capacity[552]. - The Brazilian government has implemented protectionist measures, including an import quota system on alloy products, which may impact the company's operations[546]. - Global crude steel production totaled 1,882.6 million tons in 2024, a decrease of 0.81% compared to 2023, with China accounting for 53.4% of global output[549]. - China's steel production is expected to decline in the next five to ten years, impacting demand for lower-grade iron ore[672]. - The new US import policies, including tariffs on Chinese steel, may disrupt global steel supply chains and demand[674]. Financial Position - As of December 31, 2024, total debt increased to R$56,915 million, representing 368.2% of shareholders' equity[621]. - Cash and cash equivalents increased to R$23,310 million as of December 31, 2024, compared to R$16,046 million as of December 31, 2023[609]. - Cash provided by operating activities increased by R$1,358 million, or 18.6%, from R$7,293 million in 2023 to R$8,651 million in 2024[611]. - Cash used in investing activities decreased by R$3,469 million, or 75.6%, from R$4,589 million in 2023 to R$1,120 million in 2024[613]. - Cash used in financing activities varied by R$1,428 million, or 107.8%, from cash provided by financing activities of R$1,324 million in 2023 to cash used of R$104 million in 2024[614]. Strategic Initiatives - CSN Inova has 80 initiatives underway, with a 27% increase in scaled projects compared to 2023, resulting in gains of approximately R$700 million from cost reductions[659]. - New technological routes for processing steel slag and mine tailings were developed in 2024 to reduce clinker content[660]. - The company expects to fully pay or refinance portions of its indebtedness due in 2024 to 2026 using cash flows from operating activities or new financings[638]. Future Outlook - Demand for high-grade iron ore is rising due to the shift towards greener steelmaking technologies, with a focus on producing iron ore with 67% or more iron (Fe) content[676]. - Iron ore prices are expected to decline in 2025 due to an economic slowdown in China and increased supply from the upcoming Guinea Project mine[677]. - Brazilian steel production is projected to grow by 5.3% in 2024, driven by operational normalization and consumption in sectors like automotive and infrastructure[678]. - The Brazilian government is interested in strengthening federal housing programs, which may provide growth opportunities for the steel and cement segments[678].