This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Companhia Siderurgica Nacional's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Now, I turn the conference over to Mr. David Salama, CSN’s Executive Investor Relations Officer, who will present the Company’s operating and financial highlights for the period. You may begin the conference sir.

David Moise Salama

Good morning, everyone, and thank you for joining CSN’s second quarter results conference. Here, we are today at the CSN’s office, so let’s begin with Slide 3 where we can see the consolidated results for the second quarter of 2012. Net revenue totaled R$4.1 billion in the second quarter, 6% up in the first quarter is due to higher sales abroad. In the first, Nacional net revenue reached R$8 billion. Gross profit reached R$1.2 billion in line with the first quarter of this year. EBITDA reached R$1.1 billion in line with the first quarter 2012, totaling R$2.2 billion in the first half. EBITDA margin was 27%.

The second quarter CapEx reached approximately R$800 million, first half investments totaled R$1.7 billion. CSN posted second quarter net loss of R$1 billion, basically due to an accounting reclassification with no cash effect, low adjustment investment is not recurred. That is on the accounting rules as well on the Company's investment policy, management proceeds evidence of significant reduction in the Company’s investment in net sales by the end of June of 2012, and despite on the reclassification of accrued losses recorded under shareholders’ equity to the income statement.

It's worth mentioning that this reclassification has no cash impact, and that will affect the dividend payment due to existing profit results. Explaining the effect of these reclassification, net income would have totaled R$550 million in the second quarter and R$640 million in the first half of this year.

Now, let's move to the Slide 4 where represent EBITDA evolution. The EBITDA total R$1.1 billion in the second quarter in line with the first quarter of 2012. It’s worth mentioning certain sectors that partially offset one and another.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs