National Steel (SID) Q2 Earnings Beat Estimates, Revenues Dip Y/Y

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]