Gerdau(US:GGB)2024-11-05 21:28Financial Performance - Net sales for the three-month period ended September 30, 2024, were R$17,378,032, a slight increase from R$17,063,258 in the same period of 2023, reflecting a growth of 1.8%[4] - Gross profit for the nine-month period ended September 30, 2024, decreased to R$7,183,230 from R$9,699,689 in 2023, indicating a decline of 26.0%[4] - Net income for the three-month period ended September 30, 2024, was R$1,356,245, down from R$1,592,065 in the same period of 2023, a decrease of 14.8%[5] - Basic earnings per share for preferred shares was R$0.64 for the three-month period ended September 30, 2024, compared to R$0.75 in 2023, a decline of 14.7%[4] - The company reported a comprehensive income of R$748,792 for the three-month period ended September 30, 2024, down from R$2,352,976 in the same period of 2023, a decrease of 68.2%[5] - Net income for the nine-month period ended September 30, 2024, was R$4,276,098, a decrease of 38.4% compared to R$6,950,187 for the same period in 2023[7] - For the nine-month period ended September 30, 2024, consolidated net sales decreased to R$50,204,112 from R$54,200,931 in the same period of 2023, representing a decline of approximately 7.3%[178] - The financial result, net for the nine-month period ended September 30, 2024, was a loss of R$1,395,818, compared to a loss of R$950,584 in 2023[178] Assets and Liabilities - Total assets increased to R$81,851,317 as of September 30, 2024, up from R$74,885,144 at the end of 2023, representing a growth of 9.4%[2][3] - Current assets increased to R$32,817,966 as of September 30, 2024, from R$29,197,937 at the end of 2023, a growth of 9.0%[2] - Total liabilities decreased slightly to R$26,335,380 as of September 30, 2024, from R$25,646,281 at the end of 2023, a reduction of 2.7%[3] - The company’s total financial assets amounted to R$7,542,368, with R$6,711,168 classified as financial assets at amortized cost and R$831,200 at fair value through profit or loss[87] - Total current liabilities from joint ventures decreased to R$5,320,733 from R$7,153,365 in the previous year[27] Cash Flow and Investments - Cash provided by operating activities increased to R$10,538,576, up 11.3% from R$9,472,816 in the previous year[7] - Net cash provided by operating activities reached R$8,594,590, representing a 14.2% increase compared to R$7,525,408 in 2023[7] - The company reported a net cash used in investing activities of R$2,610,224, a decrease of 31.3% from R$3,799,094 in the prior year[7] - The company’s cash and cash equivalents at the end of the period were R$8,074,104, significantly up from R$2,914,529 at the end of September 2023[7] - Purchases of property, plant, and equipment amounted to R$3,911,266, an increase from R$3,668,775 in the previous year[7] Shareholder Information - The company reported a net income available to common and preferred shareholders of R$1,347,402 for the three-month period ended September 30, 2024, compared to R$1,581,791 for the same period in 2023, reflecting a decrease of approximately 14.7%[160] - The company declared dividends of R$0.28 per share for the first quarter and R$0.12 per share for the second quarter of 2024, totaling R$841,511 in proposed dividends[159] - A capital increase of R$4,057,882 was approved on April 16, 2024, resulting in the issuance of 351,413,410 new shares, increasing the total number of shares to 2,108,480,460[149] - The company repurchased 581,200 common shares and 18,588,200 preferred shares as part of its share buyback program, totaling R$349,791[152] - The controlling shareholder, Metalúrgica Gerdau S.A., held 97.5% of common shares and 33.3% of total shares as of September 30, 2024[146] Operational Highlights - The North Brazil Operation reported net sales of R$6,738,434, a slight increase from R$6,635,269 in the previous year[176] - The South America Operation's net sales increased to R$6,656,950 from R$6,331,922, marking a growth of 5.16%[176] - Special Steels Operation net sales decreased to R$1,452,256 from R$1,566,366, a decline of 7.27%[176] - Selling, general and administrative expenses totaled R$548,602, slightly up from R$538,868 in Q3 2023[176] Tax and Legal Matters - Tax provisions increased to R$1,880,312 from R$1,737,984, reflecting a growth of 8.17%[110] - Labor claims against the company amount to R$1,304,499, an increase from R$1,028,176 as of December 31, 2023[128] - The company recognized R$1.2 billion in tax credits related to the recovery of ICMS in the tax base of PIS and COFINS lawsuits in 2021[133] - A lawsuit regarding antitrust allegations resulted in a fine of R$245,070, which has been updated to R$417,820[120] Future Outlook - As of January 1, 2024, the projected net income is R$4,276,098, indicating a positive outlook for the upcoming period[6] - The total comprehensive income for the year is projected to be R$7,569,992, reflecting the company's growth strategy[6] - Gerdau S.A. plans to continue its market expansion and product development initiatives to enhance its competitive position[6]