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.
On the one hand, EBITDA was positively impacted by higher average mining prices and upturn in prices in Real due to the appreciation of the dollar; and second, the increase to sales abroad. However, it is a fact we're partially offset by lower iron ore sales volume and higher SG&A expect.Now let's go to the Slide No. 5. On this slide we can see net revenue and EBITDA for CSN operational segment. Mining accounted for 27% of net revenue and 6% of the EBITDA in the second quarter 2012, while Steel was responsible for 62% of net revenue and 39% of the EBITDA. Let us move now to the Slide No. 6, which shows the results from the few segments. We will begin with the graph on the top left, to sales totaled 1.4 million tons in the second quarter, 7% more than the first quarter, mainly due to the increases in Steel sales abroad, thanks to the German subsidiary SWC, whose results were fully consolidated in the second quarter. 74% of the sales came from domestic market, 23% from our subsidiaries abroad, and 3% from exports. As you can see in the graph at the top right, net revenue from two operations totaled R$2.7 billion, 11% more than in the first quarter in 2012. At the bottom, we’ve our EBITDA figures. Few segment EBITDA totaled at 470 million in line with the first quarter 2012, and the EBITDA margin was of 18%. Read the rest of this transcript for free on seekingalpha.com