Recently, Companhia Siderúrgica Nacional (SID) reported results for the fourth quarter and full year 2009.
During the quarter, net revenue totaled R$3.06 billion, down 9.8% year over year. However, it was up 2.4% sequentially primarily due to the increase in sales volume in the domestic market, where prices are normally healthier than abroad. In 2009, net revenue came to R$10.98 billion, down 21.6% from 2008 level primarily due to shrinking demand and lower prices in the first half of 2009.
SID posted a quarterly net income of R$745 million, down from R$3,936.3 million in the fourth quarter of 2008. EPS was R$0.94 or 54 cents compared to an EPS of R$4.96 or US$2.17 in the year-ago period. Reported EPS was above the Zacks Consensus Estimate of 45 cents.
Full year 2009 net income was R$2,598.7 million, less than R$5,774.1 million reported in 2008 due to the impact of the economic crisis, especially in the first half of 2009. Reported EPS was R$3.28 or US$1.63 compared to R$7.28 or US$3.96 in the previous year. EPS was slightly below the Zacks Consensus Estimate of $1.65.
EBITDA amounted to R$1,203.6 million in the fourth-quarter, down 18.2% year over year. In 2009, EBITDA reached R$3,606.2 million, 45% down from 2008.
Fourth-quarter EBITDA margin stood at 39.4%, down by 400 basis points from the fourth quarter of 2008. The 2009 EBITDA margin was 33%, less than 47% recorded in 2008, due to the strong reduction in demand.
As on Dec 30, 2009, the consolidated net debt totaled R$6,276 million, up from R$5,858 million at the end of the previous quarter and R$2,386 million recorded as on Dec 31, 2008. The increase was attributable to the huge payments of dividends and increase in capital expenditure.
The international economic slowdown and the decline in steel prices will create a challenging business environment in the near term. However, the medium term growth outlook of the company is encouraging due to its Casa de Pedra project. The project should generate significant revenues and earnings growth in the future.
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