Gerdau S.A. Announces the Consolidated Results of 2010

Mar 03, 2011, 10:02 ET from Gerdau S.A.

PORTO ALEGRE, Brazil, March 3, 2011 /PRNewswire/ -- Gerdau S.A. reports fourth quarter 2010 results.

2010 Highlights

Shipments totaled 17.4 million tonnes in 2010, a growth of 24% in relation to 2009, benefiting from the favorable scenario in the world auto industry, as well from the construction and manufacturing industries in Brazil. In the 4Q10 shipments totaled 4.5 million tonnes.

In 2010, consolidated net sales reached R$ 31.4 billion, which was 18% higher than in 2009, driven by the higher shipments. In absolute figures, the Brazil Business Operation was the highlight of net sales growth in 2010, supported by the higher shipments, especially in the domestic market. The Specialty Steel Business Operation also posted significant growth in net sales, led by the shipments growth at its operations in Brazil and the United States. In the 4Q10 net sales totaled R$ 7.8 billion.

EBITDA in 2010 reached R$ 5.2 billion, compared to R$ 3.8 billion in 2009, representing an increase of 36%. EBITDA margin accounted for 17% in 2010 from 14% in 2009. In the 4Q10 EBITDA reached R$ 815 million with the EBITDA margin accounting for 10%.

Net income was R$ 2.5 billion in 2010, grew of 144% from R$ 1.0 billion of 2009, mainly due to the better operating results. In the 4Q10 net income reached R$ 420 million.

In 2010, capital expenditure on fixed assets totaled R$ 1.3 billion.

Gross debt on December 31st, 2010 was R$ 12.5 billion, representing 2.8 times the EBITDA of the last 12 months.

In 2010, Metalurgica Gerdau S.A. and Gerdau S.A. deliberated payments of dividends and interest on equity in the amount of R$ 264 million (R$ 0.65 per share) and R$ 630 million (R$ 0.44 per share), respectively. In the 4Q10 was approved payment of R$ 37 million (R$ 0.09 per share) to Metalurgica Gerdau S.A. and R$ 90 million (R$ 0.06 per share) to Gerdau S.A., to be paid on March 24th, 2011.

Additional Information

Gerdau S.A. informs that it is filling today its 4Q10 results at the Securities and Exchange Commission (SEC) and at the Comissao de Valores Mobiliarios (CVM), which are available at Gerdau's website. To access this document, please click on

The 4Q10 Valuation Guide is also available at Gerdau's website  

SOURCE Gerdau S.A.