INSUBCONTINENT EXCLUSIVE:
compared to the same period last year
Analysts had expected a profit of R$200 million ($35 million), making the result a significant beat.Despite this, Usiminas shares fell 5.6%
to R$5.74 ($1.01) after the results
attributed its strong quarter to higher steel prices, especially in the automotive sector, and lower costs in its steel division
increase.Meanwhile, net revenue climbed 10% to R$6.8 billion ($1.19 billion)
Yet Shares Slide Amid Market Uncertainty
(Photo Internet reproduction)Mining sales volume also grew, reaching 2.2 million tons, up 13% from the previous year
Usiminas benefited from a robust automotive sector, which saw vehicle production expand by 8.3% in the quarter.Usiminas Posts Q1 Recovery
Usiminas reported a positive foreign exchange gain of R$112 million ($20 million), reversing a loss of R$233 million ($41 million) in the
previous quarter.However, net debt climbed to R$1.37 billion ($240 million), mainly due to working capital needs
Capital expenditures fell 43% quarter-on-quarter to R$219 million ($38 million).Analysts at XP Investimentos described the results as solid,
highlighting the positive impact of higher prices and lower costs
also contribute to this pressure
Santander maintained a neutral rating on the stock with a target price of R$7.50 ($1.32), citing strong sales but higher costs.UBS analysts
set a neutral rating and a R$7.00 ($1.23) target, pointing to improved visibility on margin recovery but warning that a full turnaround
would take time.Usiminas expects operational stability in the second quarter but sees a challenging environment ahead, with risks from
but persistent industry headwinds and cautious analyst outlooks continue to weigh on its stock.
