Help Desk -
9958816305, 9810335381
Email
Password

Gerdau Cuts 2019 Investment Plan amid Weak Demand

Steel News - Published on Thu, 08 Aug 2019

Image Source: Wikipedia
Gerdau has cuts its full-year capex estimate by 18%, due to reduced demand for long steel products, weak construction demand and a fast pace of divestitures. CEO Gustavo Werneck said “What we decided to reduce was the investment related to capacity expansion, those related to higher growth of some products and services related to the Brazilian market, such as the expansion of hot rolled coils in our Ouro Branco mill, as we understood that there would be no need to approve these investments at this time as the recovery in demand did not come at the speed we imagined. We are going to pay close attention to demand in the second half of 2019. If demand bounces back, we could re-evaluate these investments.”

The Brazilian steelmaker says Q2 profit fell 46.5% YoY to 373 million reais (USD 94.2 million), citing its aggressive asset sales program in which it sold assets in the US, China and India.

Source :

Posted By : Sanju Moirangthem on Thu, 08 Aug 2019
Related News from Steel segment