Gerdau Announces 2007 Consolidated Results

    PORTO ALEGRE, Brazil, Feb. 13 /CNW/ --
    In 2007, the production of crude steel (slabs, blooms and billets)
totaled 17.9 million tonnes, an increase of 13.6% as compared to 2006. This
increase in volume is partially due to the improvement in the operations of
the several regions in which Gerdau operates and also the consolidation of new
companies acquired during 2007.
    The production of rolled products reached 15.2 million tonnes, 18.4%
greater than the production in 2006.
    Consolidated sales in 2007 totaled 17.2 million tonnes, an increase of
15.2% as compared to 2006. Of this total, 41.0% derived from operations in
Brazil and the remaining 59.0% derived from companies abroad. Excluding the
acquisitions carried out in the period in comparison, sales grew by 3.6%.
    In 2007, the consolidated net sales reached R$ 30.6 billion, a growth of
18.3% as compared to 2006, basically due to the greater sales volume during
the period, the greater prices of the steel products in the foreign markets
and the acquisitions made during the period.
    Cash generation, represented by the EBITDA (earnings before interest,
taxes, depreciation and amortization) reached R$ 6.2 billion in 2007, which
corresponds to an increase of 6.9% over last year. The margin reached 20.4%.
    In 2007, consolidated net income was R$ 4.3 billion, an increase of 1.1%
over 2006. It is important to mention that some non-recurrent items affected
net income in both 2006 and 2007, preventing their comparability. In 2006, net
income was influenced by non-recurrent revenues of R$ 263 million and in 2007
by non-recurrent expenses of R$ 164 million. Excluding those effects, net
income would have been R$ 4.5 billion in 2007, representing a growth of 11.9%.
    According to the investment program for the 2007-2009 triennium, Gerdau
invested US$ 1.5 billion in fixed assets in 2007. Concurrently, Gerdau
invested an additional US$ 4.8 billion in acquisitions both in countries where
it already has operations as in geographical expansion.
    Financial Liabilities
    Net debt (loans and financing, plus debentures, less cash and cash
equivalents and securities), as of December 31, 2007, amounted to R$ 10.8
billion. This amount is significantly greater than the amount as of December
31, 2006 because it included debt raised for the payment of acquisitions
carried out throughout the year, in particular the acquisition of Chaparral,
in September.
    Considering the gross debt (loans and financing, plus debentures), 16.0%
was short term (R$ 2.5 billion) and 84.0% was long term (R$ 13.4 billion). The
average payment term of this debt is 6 years and 4 months.
    At the end of the year, cash and cash equivalents, plus financial
investments, totaled R$ 5.1 billion, of which R$ 3.1 billion (60.6%) was
indexed to foreign currencies, mainly the U.S. dollar.

For further information:

For further information: Thiago Deiro, Assessor de RI, Gerdau S.A., 55 
(51) 3323-2703, Web Site:

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