Q3 results for Brazil steelmakers will not excite investors - SLW
Friday, 23 Oct 2009
BNamericas reported that despite a slight market recovery, the third quarter results of Brazilian steelmakers will not provide much enthusiasm for investors.
Mr Pedro Galdi brokerage analyst at SLW said that "Our expectation of recovery in the mining and metals sector continues to be confirmed and we will see improvements quarter by quarter. But even with stronger sales, we are not expecting CSN, Gerdau, Usiminas and Vale to excite investors."
Mr Galdi expects local mining and steel sector companies to post stronger earnings in Q4.
The report forecasts third quarter profits of BRL 5.52 billion and EBITDA of BRL 5.7 billion for Vale, profits of BRL 725 million and EBITDA of BRL 1.13 billion for Gerdau and profits of BRL 706 million and EBITDA of BRL 1.34 billion for CSN.
Meanwhile, Usiminas is expected to post the lowest earnings and EBITDA, with BRL 220 million and BRL 293 million, respectively.
SLW issued a buy recommendation for Vale and Gerdau, and hold for Usiminas and CSN.
