Brazilian steelmaker CSN (BVMF: CSNA3) reported a third-quarter net loss of 1.25 billion reais ($221.5 million) late on Thursday, down from a 76 million-real profit a year earlier, as lower iron ore prices and higher freight costs weighed on its mining unit.
Negative seasonal factors in external steel operations and higher cement production costs also affected CSN’s quarterly results, the company said, as it presses ahead with a broad divestment plan announced in January to lower its debt.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 43.5% to 1.88 billion reais, while net revenue was down 11.1% to 10.49 billion reais.
Analysts polled by LSEG had forecast adjusted EBITDA of 2.1 billion reais and net revenue of 10.6 billion reais.
CSN earlier this week announced the sale of its cement unit to China’s Huaxin in a $2.3 billion deal.
CSN’s leverage ratio rose to 4.23 at end-September from 3.49 a year earlier, with net debt up 6.6% to 44.92 billion reais.
Mining unit CSN Mineracao (BVMF: CMIN3) separately reported a third-quarter net loss of 356 million reais, versus a profit of 696 million reais a year earlier.
($1 = 5.6425 reais)
(Reporting by Michael Susin in Barcelona. Writing by Gabriel Araujo. Editing by Mark Potter)
