Brazil’s Gerdau Group reported consolidated net profit of BRL 4.29 billion ($824 million) for the second quarter of 2022, up from BRL 2.94 billion in the previous quarter.

Net sales increased by 13% to BRL 22.968 billion and EBITDA increased by 14.8% to BRL 6.680 billion. According to the company, the increase in EBITDA reflects the current state of demand and prices in the steel industry, with prices in turn reflecting higher production costs.

In volume, crude steel production rose 0.7% to 3.43 million tonnes, while sales of steel products rose 6.2% to 3.25 million tonnes.

The rise in sales volume “evidences the resilience of the construction and industrial sectors and the gradual recovery of the automotive sector,” the company said in a statement.

In terms of the group’s business divisions, during the second quarter, Brazil was responsible for 45.3% of the group’s net sales and 32.3% of its EBITDA, while North America accounted for 33.2% respectively. percent and 42.6 percent, South America 8.6 percent and 11.1 percent, and the Specialty Steels business division had 12.9 percent and 14.8 percent.

Gerdau added that the highlight of the second quarter was the largest contribution from the North American trading division, supported by the stronger metals allocation in the United States.

USD = 5.28 BRL (August 3)